Ecobank Kenya Company Secretary CAROLINE MBEGE under scrutiny for allegedly collaborating with fraudsters.

Thursday, December 19, 2024 - Ecobank Kenya Company Secretary Caroline Mbege is on the spot over suspicious deals at the bank, which has put the bank at risk of facing sanctions over financial irregularities.

Mbege has also been accused of misleading the bank by working in cahoots with fraudsters to defraud a major shareholder of the bank's client/account holder and placing the bank into disrepute.

Mbege is allegedly engaged in fraudulent deals at the bank, leading to the loss of millions of shillings by the financial institution.

According to bank statements in our possession, Mbege has authorized illegal withdrawals of millions of shillings belonging to clients and diverted the money to microfinance institutions in fictitious transactions.

The Legal boss is also at the center of a scandal at the bank where she refuses to comply with court orders to award litigants who’ve been awarded by the courts in legal cases against the bank.

However, Mbege is allegedly complying with other court orders where she has cut deals to receive kickbacks from litigants who’ve won cases against the bank.

Mbege now risks six months in jail for failing to comply with a High Court directive to release USD 487,047.99 in unpaid salaries and allowances to one of its clients, Monthida Rashi. The bank is accused of defying a court order issued by Lady Justice J.W.W. Mong’are on December 5, 2024.

The Legal Department boss has further been embroiled in a fresh scandal where a judge received a bribe of Sh200 million to influence a case in court. The judge has already been transferred in the recent shake-up by Chief Justice Martha Koome.

The High Court directed the bank to release the funds, held in one of its accounts, to Rashi, the fifth plaintiff in a long-standing financial dispute. The amount was intended to settle pending salary arrears and allowances owed to her. Justice Mong’are explicitly ruled:

“The total sum of USD 487,047.99/- be released to the 5th Plaintiff from one of the Interested Party’s Bank Accounts held at EcoBank Kenya Limited to offset her pending salaries and allowances.”

Additionally, the court allowed Rashi, as a valid account signatory, to withdraw up to USD 2,000 per month from the amount, as per a resolution passed on June 25, 2021.

Despite this clear order, the bank has allegedly failed to act, prompting legal threats from the plaintiffs’ lawyer, Wilfred Nyamu. Nyamu criticized Ecobank’s defiance, calling it a blatant disregard for the rule of law.

“The CEO of EcoBank Kenya must comply within 24 hours. We have already written a letter to them,” Nyamu stated.

In a formal notice to EcoBank’s management, the plaintiffs’ legal team demanded immediate compliance:

“We have noted your hesitation to comply with the orders of the court since service of the same. We are instructed to demand, which we hereby do, that you transfer the money into our client’s account as instructed within twenty-four (24) hours.”

Lawyer George Kithi, representing Kiwipay Limited, whose monies are held within EcoBank Kenya, emphasized the importance of adhering to the court order in a letter addressed to EcoBank.

“Kindly purge the contempt to avoid any adverse action against yourselves,” Kithi reiterated.

The letter warned that failure to comply would result in contempt of court proceedings, potentially leading to imprisonment for Ecobank’s CEO, Caroline Mbege, Head of Legal, and other senior officials.

The legal battle began in May 2024 when Rashi filed an application through her lawyer, requesting permission to withdraw the funds as compensation for her salary arrears. The court’s ruling in her favor underscored the urgency of the matter.

EcoBank Kenya has yet to issue an official response to the allegations.

Via Cyprian Nyakundi.

The Kenyan DAILY POST.