NIC BANK MANAGERS ON THE SPOT FOR WITHDRAWALS ON DEAD CUSTOMER’S ACCOUNTS

Upon Mr. Ogada’s death, his minority partner Saymon Mwawasi hatched a scheme to rob the deceased’s family of their father’s shareholding stake and assets of the company. Mwawasi continued to operate the account, cashing cheques and making payments from the account using Ogada’s signatures.

Mr. Symon Mwawasi

NIC Bank is on the spot following complaints by the relatives of a departed accountholder whose funds were withdrawn by fraudsters using his signature months after he had died. Top bank managers allowed the account to be overdrawn despite complaints to them by the departed accountholder’s next-of-kin and a police investigation into the withdrawals.
Challenged by the facts of the case, NIC Bank declined to answer questions emailed to it by The Weekly Vision website on the account of the late John Magunga Ogada, a successful businessman who died in 2010. The late Ogada’s family has approached the police for investigation into the withdrawals of millions of shillings from the account he operated jointly with a business partner.
 The account CA2: 1-200-001696 was operated by two directors of JOSIM KENYA LIMITED, namely Mr Ogada and Symon Mwawasi. Mr. Ogada was the founder of the company, which is reputed for body works on motor vehicles, and held 90 percent of the shares. He died and was buried in the month of November 2010 at his father’s home in Vihiga County. Upon Mr. Ogada’s death, his minority partner Saymon Mwawasi hatched a scheme to rob the deceased’s family of their father’s shareholding stake and assets of the company. Mwawasi continued to operate the account, cashing cheques and making payments from the account using Ogada’s signatures.At one point when he realized that the account had been depleted of funds he started writing cheques to Mr. Ogada's widow, signing off as if he was the late Ogada, an act that sent the widow into depression.

The late Ogada's obituary announcement.

The Weekly Vision has seen several such cheques bearing Ogada’s signatures allegedly drawn by Ogada months after he had died. The bank was made aware that Ogada died but it did not take any action to protect the funds in the account.
Financial institutions are required to take steps to safeguard the interests of deceased accountholders, but NIC Bank, far from merely neglecting this duty, failed to take action even after the Ogada family’s complaints.
The transactions including withdrawals and the cashing of cheques running into millions of shillings using Ogada’s signatures continued for months, forcing the family to lodge a complaint with the police. Ogada’s partner presented the cheques bearing Ogada’s signatures which the bank unlawfully honoured.
It was clear from the transactions that someone at Josim Kenya Limited had mastered Ogada’s signatures, but they had collusion from the top of NIC Bank to ensure the payments were made until the account was depleted of funds.
Even after the family reported the matter, the bank did not contact them. Ogada’s widow Lilian Adisa Mazalia tried to meet the bank’s top management to no avail. She complained to the bank about its treatment of the account in light of her husband’s death, but the bank did not respond to her complaints. It is reported that the bank security team kicked her out of the premises when she went to complain about the withdrawals.
In the meantime, Mwawasi continued to dispose of the company’s assets and transferred some to a new company he registered after Ogada’s death, which is in the same line of business. He even opened a fresh account at NIC.

One of the cheques signed by 'Mr. Ogada' from the grave.