Absa Bank remains the centre of attraction in the corridors of justice over a number of cases pitting the lender, some of its clients, and former employees.
Details have emerged linking the bank’s senior officers to rigorous efforts to try and manipulate ongoing cases, among them the Ksh 1.5 billion compensation case.
After failing to acquire stay orders on proceedings over the Ksh 1.5 billion compensation case against New Mega Africa, the bank officials are reportedly working behind the scenes to try and overturn some court decisions.
Last week, the Court of Appeal refused to set up a three-judge bench to hear an application seeking to overturn an injunction stopping the bank from auctioning property belonging to New Mega Africa.
The bank failed to stay orders by Justice Mongare preventing the transfer of the title of the property in Kitisuru in Nairobi to a third party pending active litigation of the case.
This means that the civil case in which the bank was ordered to pay the transport firm Ksh 1.5 billion as compensation over a data breach will continue.
The bank has been desperate to overturn a court injunction stopping it from advertising the piece of land as well as overturning the court decision to award the firm Ksh 1.5 billion as compensation.
Justice Josephine Mongare in June 2023 issued the directive saving New Mega Africa from being auctioned over a more than Ksh 80 million debt.
This comes against the backdrop of the ongoing judiciary purge that saw Chief Justice Martha Koome reshuffle 33 High Court judges from their current workstations.
The bank has had numerous cases going against it, but the mainstream media has stayed away from publishing over advertisement interests.
In October, the Employment and Labour Relations Court in Mombasa ordered the bank to pay its former branch manager Ksh 2,300,000 in unpaid bonuses for the year 2022.
The court also ordered the lender to effect an agreement of salary increments at 13% from January 2023 to May 2023 to Thomas Macharia Mwangi, who served as the Nkrumah Road branch manager.
The court found that the discretion by the bank not to award such payment fails to be effective the moment a policy indicating that such percentages were due was issued and known to all employees.
The court found out that from March to May 2023, during the disciplinary process, Mr. Macharia was not in control of his employment.
“The time taken to address the workplace misconduct should not deny him the due benefits while employment subsisted,” the court judgement read.
The court ruled that employment rights can be secured contractually, through workplace policies and practices, and agreements.
“In this case, the court finds the claim of a 13% salary increase from January to May 2023 justified at Ksh 647,218.”
The court made a declaration that there was a violation of constitutional rights, consequently awarding the former employee the general damages worth Ksh. 5,000,000, unpaid bonuses of Ksh 2,300,000 for the year 2022, notice pay worth Ksh 647,218, and unpaid salary increments at 13% from January 2023 to May 2023 of Ksh 373,294.
The court directed Mr. Macharia to complete clearance for issuance with a Certificate of Service.
Absa Bank employed Mr. Macharia as a branch manager on 14 February 2019 at the Lavington branch, Nairobi, and then promoted him to a senior branch manager at the Nkrumah Road branch, Mombasa, on 29 March 2021.
The court had been told that on 17 March 2023, he was issued with a notice of suspension signed on behalf of Doufold Odanga, the regional manager, by one Serah Muthui, who is the Nyali branch manager.
Muthui was also eyeing the regional manager seat before the war started.
The 30-day suspension was based on allegations that he was involved in irregular, unauthorized overdraft facilities provided to some customers at the Nkrumah Road branch.
On 14 April 2023, the suspension was extended for 30 days.
On 2 May 2023, Mr. Macharia was issued with a notice to show cause why his employment should not be terminated on the grounds that following his suspension, there was an investigation finding that there were irregular and unauthorised overdraft facilities advanced to bank customers under his leadership.
The bank claimed that on several occasions, he had violated the bank policies and procedures by engaging in irregular lending for two separate customers, INO Safinah Petroleum and DM Kanyi.
He was directed to file his response by 8 May 2023.
The claim was that the claimant submitted his response to the notice to show cause on 4 May 2023, upon which he was invited to the disciplinary hearing on 7 June 2023.
Following the disciplinary hearing, which was virtual, the bank supplied Mr. Macharia with draft minutes for his perusal and confirmation on 17 May 2023.
The judge ruled that the minutes from the meeting did not capture the issues addressed during the disciplinary hearing, and Mr. Macharia requested the bank to make amendments, but this was declined.
On 26 May 2023, Mr. Macharia was issued with a letter terminating his employment.
He was allowed the right of appeal, which he filed on 29 May 2023.
The court was justified that before his appeal could proceed for the hearing, the bank advertised for his position, meaning that there was a premeditated position that he would not be successful.
This resulted in unfair and unlawful termination of employment contrary to Sections 41, 43, and 44 of the Employment Act.
There was an appeal hearing on 7 June 2023, and again, the minutes failed to capture what had been stated at the hearing, and despite his protests, the bank refused to make amendments.
On 16 June 2023, Mr. Macharia was issued with a notice rejecting his appeal.
Serah Muthui, who was at the center of this setup, has been in the spotlight over numerous corruption scandals and leaking information to third parties.
She came under scrutiny after the staff in Digo and Nyali branches were accused of colluding to swindle Ksh 106 million from a client.
The said client is a retired ambassador and also served in the Kenya Defence Forces (Kenya Navy).
While he thought his pension money was safe in the bank, the bank officials from the two branches changed the signing mandates on the account without the client’s authority, introduced a fake telephone number, opened a fictitious account, and made away with the Ksh 106 million.
