Two senior employees of KCB Bank in Lakes State, South Sudan, have been arrested for allegedly stealing $163,000 (Kshs. 24 million) from clients.
The bank manager and his deputy were arrested by the military on October 28, 2023, and have been held in detention for over three days.
According to the Lakes State Minister of Information, Paul Ayang, a complaint was filed by an individual who saves with the local bank, prompting the police to issue a warrant of arrest against the two officials.
Ayang also said that the police would be taking over the case from the military as soon as possible.
The state official assured that the suspects would be guaranteed their safety and that they would be prosecuted in court.
This is not the first time that KCB Bank has been embroiled in a fraud case.
In 2021, three employees of the bank were arrested for stealing over Kshs. 100 million from clients.
The employees were later convicted and sentenced to prison.
The arrest of the two KCB Bank employees in Lakes State has raised concerns about the safety of deposits in the bank.
Some customers have expressed fears that their money is not safe and have started withdrawing their deposits.
KCB Bank has not yet issued a statement on the arrest of its employees in Lakes State.
However, the bank has said in the past that it is committed to providing its customers with a safe and secure banking experience.
The arrest of the two KCB Bank employees is a reminder of the importance of vigilance when choosing a bank.
Customers should carefully research the bank’s reputation and track record before depositing their money.
It is also important to keep an eye on your bank statements and report any suspicious activity to the bank immediately.
KCB Bank’s Entanglement in the Triton Scandal
Mr Devani fled the country in 2009 following the Triton Oil scandal. The government sought the help of Interpol to track him down.
— Sura Mbaya (@surambaya) May 17, 2020
KCB Bank should be reminded of its entanglement in the Triton scandal in 2009, in which oil worth close to KSh. 8 billion was released from storage without notification of the financiers.
Triton collapsed soon after, and the owner turned into a fugitive.
The scandal involved a complex scheme in which Triton Oil Company was able to draw oil from the Kenya Pipeline Company (KPC) system without paying for it.
Triton was also able to sell oil that had been financed by banks without their consent.
KCB should be reminded about its entanglement in the Triton scandal in 2009. Oil worth close to KSh. 8 Billion was released from storage without notification of the financiers. Triton collapsed soon after and the owner turned into a fugitive.
— ephraimnjegafan (@ephraimnjegafan) March 19, 2023
KCB Bank was one of the banks that financed Triton’s oil deals.
The bank released oil from storage to Triton without first notifying the financiers.
This allowed Triton to sell the oil and pocket the proceeds.
The Triton scandal was a major blow to the Kenyan economy. It also caused significant losses for KCB Bank and other lenders.
KCB Bank has since taken steps to improve its risk management and compliance procedures.
However, the Triton scandal remains a stain on the bank’s reputation.
Why Is President Ruto easy on KCB?
The incestuous relationship between KCB Bank and the Kenyan government is a cause for concern.
The bank is being treated like a parastatal, and is deeply involved in the government’s plans to import food through KNTC and oil imports.
This close relationship is reminiscent of the KANU era, when the bank’s credit decisions were delegated to the political class.
The cosy relationship between KCB Bank and the government raises a number of concerns.
First, it raises concerns about the bank’s independence. A bank that is beholden to the government is less likely to make sound business decisions, and more likely to make decisions that are in the interests of the government, even if those decisions are not in the best interests of the bank or its shareholders.
Second, the close relationship between KCB Bank and the government raises concerns about corruption.
A bank that is close to the government is more likely to be involved in corrupt practices, such as bribery and kickbacks.
From laissez faire to command economy; Soviet style breadlines, KNTC scandal; KCB requiring bailout; minting of Oligarchs; failed economist. You can't make this up , stuff of movie magic.
— Chevalier de Literati (@CHARLESNYAGAH10) March 9, 2023
This can lead to losses for the bank and its shareholders, and can also damage the bank’s reputation.
Finally, the close relationship between KCB Bank and the government raises concerns about the stability of the financial system.
If KCB Bank were to fail, it would have a significant impact on the Kenyan economy.
This is because KCB Bank is the largest bank in Kenya, and it plays a vital role in the country’s financial system.
— KinotiBucks (@BucksKinoti) September 30, 2020
The government should take steps to distance itself from KCB Bank.
This would help to ensure the bank’s independence, reduce the risk of corruption, and protect the stability of the financial system.