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Suspicion over triangulated Sh700m

COUNTIES
By - | December 15th 2012

By Andrew Teyie

Close to Sh700 million was triangulated between Dubai Bank (DB) and Imperial Bank (IB) before Diamond Trust Bank (DTB) flagged the cash as suspicious transaction two months ago.

 According to documents in our possession, the suspicious transaction that fits the money laundering Bill is being investigated by banking fraud unit.

The funds were moved from DB when Nereah Michael Said was Bank Managing Director. Said has accused the Bank Chairman Hassan Zubedi of flouting banking regulations, including tampering with customers savings, an allegation Zubedi has denied. On Friday, we established that Said, who was the bank’s MD for about five months, is involved in another court tussle with Mr Zubedi for allegedly defrauding him Sh11 million.  “If it was not for DTB, we would not have known about these suspicious transactions.

The transaction is now being investigated,” stated Zubedi, when we sought his comment yesterday. DB sacked Said on November 20 on grounds of breach of banking rules and regulations and tampering with the account of Manfred Water Schmitts among others.

 “In clear breach of law and your duty of care to the bank, you were involved in suspicious transactions involving transfer of funds,” stated her termination letter signed by Zubedi.

Rejected transaction

She was also accused of allegedly transferring cash from the bank to an account at IB, which IB rejected and returned. According to the paper trail, the funds were moved from Manfred Walter Schmitt DB account number 81151164 to his other account at DTB, Diani branch account number 0215235001 on October 17. During this transaction Sh463 million was transferred to his account. Two days earlier, Sh463 million into the same bank account of Schmitt. Curiously, DB’s Diani branch was opened in June, a month before the movement of cash started. However, before the transactions were flagged, Sh7 million was moved from DB account of Schmitt (81151164) to Said’s IB account 002682383 on October 11. The amounts were transferred in sh 3.7 million and sh 3.5 million.

According to an internal bank email from a staff at Dubai, IB rejected the transaction and returned the funds.

Zubedi and Said are tied in another court battle.  Said is allegedly accused of obtaining Sh11 million from Zudebi through false pretense. The charge sheet dated December 14 states: “On June 27, 2012, at Co-operative Bank Diani branch in Kwale within Kwale County with intent to defraud and obtained Sh100, 000 Euros translating to Sh11 million from Hassan Zubedi of Dubai Bank Kenya Ltd by falsely pretending that they were in a position to help him acquire three shops in Diani which was not true.”

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