Ex-bank manager loses case

A former senior manager at Equatorial Commercial Bank (ECB), who claimed he was fired for whistle blowing, has lost a case against his employer after it emerged that he had agreed to retire early.

Lucas Otieno, who was a financial controller, claimed his tribulations began in 2014 when he reported to the Central Bank of Kenya (CBK) that the lender had failed to adhere to banking laws requiring it to establish a proper chain of command.

According to Mr Otieno, the ECB head of legal and compliance doubled up as the head of risk department, contrary to banking industry regulations.

After CBK conducted an inspection, he said, it was established that having the legal department running risks and audits compromised independence of the oversight functions.

This led to Otieno being forced out over alleged poor performance, he said in the suit.

However, Labour Court Judge Byrum Ongaya ruled that the applicant did not produce evidence that he was forced to accept the early exit.

“Court finds that the parties are bound by their mutual and voluntary separation agreement that has not been shown to have been unlawful in any respect. The court finds that the termination was not unfair or unlawful,” the judge said.

“The court finds that the parties, having agreed upon the terms of separation, it was misconceived for the claimant to allege that the termination was unfair”.