Stanbic Bank Dragged To Court By Blackfire Mining As 5 Bank Employees Face Fraud Charges
Lusaka ~ Thur, 1 Oct 2020
By ZR Reporter
Stanbic Bank Zambia Limited has been sued by Blackfire Mining Limited, demanding US$125,000 as damages for breach of contract after the bank allowed a former director for the mine to fraudulently transfer money to his personal account.
And Blackfire Mining Limited has reported five Stanbic Bank employees to the police in Ndola for fraud after the bank negligently allowed a former director in the mining firm, David Lance Morris to withdraw US$125,000, when the bank was instructed not to allow such a transaction.
In a statement of claim filed in the Kabwe High Court, Blackfire Mining is claiming damages for breach of contract from the bank after it allowed Morris, who was removed as a director on July 2, 2020 following a board of directors resolution, to withdraw money from the company account held at Stanbic.
The plaintiff notified the bank on July 3, 2020 that Morris was forthwith not allowed to conduct any business or operations on any of its accounts maintained with the bank.
The mining firm stated further that the bank was on July 15, 2020 served with a letter alongside an order of injunction by its lawyers Magubbwi and Associates and were also informed that Morris was not to conduct any business on the company accounts.
The plaintiff added that the police on July 2, 2020 served a warrant on the bank restricting debit transactions on the accounts as well as online transactions on Morris’s personal accounts to which company funds were being transfered to.
But contrary to its instructions to the bank, Morris between June 29, 2020 and July 13, 2020, fraudulently made transfers from the company accounts to his personal and other accounts of his choice.
The plaintiff stated that Morris transfered US$5000, US$10,000 and US$125,000 on June 29, 2020.
He also transfered US$5,000 on July 9, 2020, another US$10,000 on July 11, 2020 and US$100,000 on July 13, 2020.
The plaintiff stated that Morris was reported to the Zambia Police for fraudulent withdraw of money from the company’s account.
Blackfire stated that the bank breached the contract by allowing Morris to fraudulently transfer company funds to his personal accounts.
The plaintiff is claiming US$125,000 from the bank for breach of contract after without due care and contrary to its instructions, allowed Morris to continue transfer the funds.
Meanwhile, five Stanbic Bank employees have been reported to the police for fraud for allowing Morris to withdraw the US$125,000, which was restricted monies and proceeds of crime.
The bank officials are Chalwe Chagwe, Kitwe branch manager, Chipinda Kakompe, relationship manager for Blackfire Mining Limited account, Mwaka Nakazwe legal team, Tamara Gondwe, bank private banking head office and Francis Chilufya relationship banker, Kitwe.
“Allowing the suspect to have access to the money through the help of Stanbic Bank official while the bank had already received full details of the fraud and duly sworn warrant served on the bank on 2nd August, 2020 indicated negligence on the part of the bank and conspiracy to defraud.
Further, the act of disobeying the warrants duly issued by the court of law is an offence,” stated police senior investigations officer, anti fraud office, a Mr H.M Akushanga in a report to the banks chief executive officer.