Absa, New Mega Africa in tough Battle over Involvement of Former Staff in Sh1.5 Billion Suit

BY OMAR SHAFI

A second application by a former Absa bank employee to be enjoined as a second defendant in the Sh1.5 billion compensation suit by New Mega Africa Limited against the bank could bring a major shift in the longstanding case.

Evans Murumba who is the former employee at Absa Nyali branch had last year applied to be enjoined in the suit but the court struck out the application under the civil procedure rules.

The court had ruled that their was no room for interested parties under the Civil Procedure Act and Rules

Read also: Absa bank Exposed in Sh10 Million Fake Bank Guarantee

However, Murumba under instructions from his legal team made a second application as per documents unveiled following the January 17th 2024 proceedings.

Murumba was employed by the bank in April 2019 before resigning in June 2022 to focus on his political career.

I’m his second application to be enjoined as a second defendant,he insists that he has adversely been mentioned and his image and character tainted hence the need to be enjoined to tell his side of the story.

He argues that both print and social media publications have adversely mentioned him in bad light.

It under his watch and other senior officers  that the bank gave New Mega Africa a loan facility amounting to Sh72 million.

Murumba’s quest to be involved as a former employee is believed to sent the bank into panic mood with the case now attracting treasury attention.

Murumba served as the coast region head of  commercial affairs and as the banking head for Absa bank before resigning.

An application dated 6th December, 2023 from Wangila and Wangila advocates on behalf of Murumba explained that his image stands to be damaged by virtue of the court proceedings.

“There is inherent risk that the court may proceed with the suit without the applicant/ intended interest party being heard despite being mentioned adversely in the main suit,” the application reads.

He claimed  that the case may have an effect in his civic and political life.

Murumba was adversely mentioned in a witness account from both Absa bank and New Mega Africa.

The bank through its lawyers has however questioned the second application by Murumba and has asked the court to quash it out under similar ground as the first application.

In the main suit, New Mega Africa accused the bank of sharing its  account details to third parties against its wishes and the banking regulations.

The firm directly blamed Corporate Credit Manager Supporting Business Banking Wycliffe Makori for working with other employees to share it’s details with a Kenya National Highways Authority officer identified as Jared Makori who happened to have shown interest in working with New Mega Africa Limited.

Mr Makori is a witness standing in for the bank and issued  affidavits in efforts to delink himself from the accusations.

His communication with Jared revolved around payments being made by Mombasa cement to Absa on behalf of New Mega Africa.

In his affidavit, he partly admits to having a relationship with Jared whom he knew while still at Eco Bank between the years 2011-2015 when Jared was an engineer at KeNHA at that time in the coast region.

Mr Makori said in the statement that Engineer Makori affirmed his commercial interest in New Mega Limited and was the one that facilitated the contract they had with Mombasa Cement.

He observes that the bank sent the offer letter for the first loan of Ksh 6million to engineer Makori to review and approve.

A separate witness account of one of the New Mega Africa directors David Abai has linked Makori and other employees among them Murumba for having received money in form of bribes to facilitate release of loans applied.

The bank through Makori has on the other hand insisted that New Mega Africa defaulted on their facilities.

In September 2021, Abai requested to restructure the facilities and this is where the whole problems between the two entities begun.

He wanted to amalgamate all his loans and spread them over 36 months.

Makori was then the head of the credit department at the Nkuruma branch.

The court has already heard that Mr Abai was shocked to learn from his business partners like Jared who also happened to be a friend to Makori about his account operations.

Makori in one of the statements claims Abai’s account was running into arrears, information that was also in the hands of third parties.

 “I was aware that even after the plaintiff acknowledged the said restructuring and promised to start servicing the loan as agreed, the plaintiff’s account again fell in arrears barely one month after the disbursement date.,”

In his affidavit, Mr Abai had told the court that the bank was frustrating his efforts to get financial help from potential business partners by sharing New Mega Africa  account information to them.

The data Protection Unit was also  dragged in where new documents detailing conversations between an officer at the Data Protection Unit and the firm were shared.

Through his lawyer Kirui Kamwibua in July, he told the court a series of events from the time he got into contract with the bank and how things fell apart between the two parties.

This involved alleged MPESA transactions and this could partly be the reason Murumba has applied to be an interested party.

The money was allegedly sent to the bank’s  staff and their relatives as facilitation fee.

Mr Abai claimed Absa bank led by Makori used sabotage and blackmail tricks by sharing confidential information to third parties and customers who would later share back-printed emails to him detailing the company’s overdrawn accounts.

He reported this to relevant departments and would later notify the Data Protection Unit to follow up the matter and take necessary action.

The battle between the two parties saw the bank being stopped by the court from auctioning New Mega Africa property over unpaid loans that stood at Sh86.4 million.

Justice Josephine Mongare issued the directive saving the company’s assets from being auctioned over the debt.

Meanwhile some of the bank’s employees have been on police radar for extortion, money laundering and blackmails.

One of them is Serah Muthui who works at Nyali Absa Nyali Branch is a person on police radar, late last year she was on the spot over a car wash conflict.

The  case is currently being handled by IPOA.

She has also been in media limelight over extortion, money laundering and blackmailing syndicates.

Read also: Twist as Former Employee seeks Involvement in Sh.1.5 billion suit against ABSA Bank

The lady has been meeting several junior bank staff who are money hungry and other fraudsters with an aim of skimming how to steal heavily from the customers who have accounts at Absa.

Ms Muthui was heard lamenting that she is connected to uncontrollable and mighty people in the national government.

“I have money. I can do  anything I want. Be wise and let us make a deal from this.” She said while taking a sip of liquor

A source revealed that they know the kind of people she is engaging with.

“She goes for late night meetings. She is normally picked with different cars in the morning and afternoon. There is a case that is being handled and it might land her in major trouble.” Said one of her confidant.

The lady brags to be untouchable since she uses Kamba witchcraft and allegedly uses her forefather’s power to lure men into bed.