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Kenya

Contractor sues Consolidated Bank over account opened in its name

Milimani Law Courts in Nairobi. CFM-FILE.

NAIROBI, Kenya Aug 31 – A contractor has sued Consolidated Bank seeking to be paid damages, accusing it of colluding with some persons to open an account without his knowledge.

Sketchers Limited, a general contractor, accuses the bank of opening an account in his name in collusion with other persons.

Further, he said some money he was expecting from Kenya Rural Roads Authority (KERRA) was deposited in the account and withdrawn without his knowledge.

He said in the court papers that the proceeds from the contract were directed in the said account and a Mr David Ndirangu, allegedly authorized the withdrawal of Sh4,307,098 leaving no money.

He accused the bank of colluding with other persons not known to him to open the account and failing to carry out due diligence before opening the account.

The company through A. I. Onyango and Co. Advocates, further said the bank failed to investigate whether the documents used to open the account were genuine and failing to confirm with the Kenya Rural Roads authority whether the account was genuine.

He further claimed that he was approached and asked to let go the claim in return of receiving the money.
He said he only came to know of the fraud after he called Kenya Rural Roads Authority inquiring about his dues and was informed that payment had been credited to his account.

Thereafter, Kenya Revenue Authority sent him withholding notifications of income taxes and VAT. He was later blacklisted by KERRA, saying he will not be given any tenders because of the alleged fraud.

He said he has lost his reputation in the eyes of the government and the agencies. He also said that he issued a letter of demand for apology but the bank ignored, forcing the company to file the case.

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He now wants the bank compelled to pay the amount which was withdrawn, be compensated for general and punitive damages and for the bank to issue and apology to KERRA, stating that he was not involved in the fraud.
The case will be heard on September 10.

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