New Wave of Fraudulent Cases, Internal Conflicts Trigger Significant Changes within Absa Bank

Absa Bank Kenya is battling to save its damaged reputation after a series of fraudulent cases involving its staff for the last one and half years.

The bank on Thursday announced changes in its top leadership structure in its first shake-up by the new Chief Executive Officer Abdi Mohamed.

Amidst its fight against allegation of data breach, it has introduced the role of chief operating and digital officer.

“In line with our ambition to build a truly digitally powered financial institution that delivers excellent customer experience across all touchpoints, we have created the role of chief operating and digital officer at a managing principal level. This role will be responsible for driving our technology and innovations agenda,” Mr Mohamed said in a communication to staff.

Chief finance officer Yusuf Omari will now oversee the bank’s treasury, strategy, transformation and sustainability functions.

However, it is the redeployment of  Moses Muthui  from the position of chief strategy officer and head of corporate investment banking to consumer banking director that has attracted attention.

“Moses will take overall responsibility for our sales and distribution, product proposition, cards and payments, bancassurance as well as asset management. Moses will continue to provide overall leadership to the marketing team” Absa told its staff.

An insider who sought anonymity said that Moses Muthui used a lot of backdoor tactics, witchcraft and money influence to land his new position that will also entail retail banking.

It is believed that there was a lot of infighting between Muthui and Elizabeth Wasunna who was given the role of Country Management Committee Director.

Muthui has previously battled allegations of amassing too much wealth and in the form of assets emanating from fraudulent deals at the bank, that include money laundering and other illegal dealings.

The bank could also ring changes in some of its branches that have been in the news for the wrong reason.

Some of the branches that could witness changes include the Nyali and Nkurumah branches in Mombasa.

Bank fraud and asset recovery detectives are following keenly allegations of fraud related cases by clients from the above mentioned branches. 

“We have zeroed in on the ongoing investigations. The incident is massive. The staff have acquired heavily from fraud and theft claims. Mostly they target clients with foreign currencies.” She said 

Absa is currently battling a Sh1.5 billion compensation suit by transport firm New Mega Africa and is also at the center of a Sh10 million bank guarantee scandal involving an investor in the oil sector.

In the Sh10 million guarantee scandal, the investor accused the bank of giving him a fake guarantee.

He had ordered goods worth millions of shillings, only for the bank to disown the guarantee.

The bank, through its Trade and Finance department, sent an email to the investor denying the guarantee.

It explained that the guarantee was not binding.

The guarantee was issued by the Absa Nkrumah Road Branch and the staff who handled the issue was suspended on October 13, 2023.

ABSA Nkrumah Road staff member Joseph Wafubwa was the one suspended over the fake guarantee.

In another scandal unmasked by singer and socialite Akothee, a man accused of stealing Sh717,111 from an Absa Bank account held by Aknotela Limited was charged before Milimani Chief Magistrate’s Court in August 2023.

The withdrawals by Simon Kipngetich Tonui happened on various dates between August 7 and September 15, 2023.

He is facing 12 counts of stealing, contrary to the law, even as Aknotela Limited remains suspicious of the bank’s staff having colluded with Simon.

Akothee would later take to the social media to blame the bank of ignoring her inquiries and opting to deal with the matter without involving her.

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