Court records presented to the High Court have brought to light how David Abai, the head of New Mega Africa Limited, was subjected to frustration and coerced into paying money.
These revelations depict a scenario wherein Absa Bank Mombasa employees pushed Mr. Abai to his limits while he was grappling with rescuing his business from financial distress caused by the bank’s management.
The court document reveals that New Mega Africa Limited, a prominent transport company in the East
African Region, found itself in dire straits due to financial constraints caused by the actions of Absa Bank.
According to court documents filed in July by Mr. Abai’s legal representative, Kirui Kamwibua, a sequence of events unfolds from the moment of Abai’s initial interaction with the bank, detailing the deterioration of relations between the two parties.
Startling revelations have emerged involving transactions via M-PESA, some directed to bank staff and even their family members.
These transactions were termed as ‘facilitation’ fees, requested by Abai when seeking assistance for loan restructuring and other interventions crucial to salvaging his business.
The bank’s association with New Mega Africa began on a positive note, during a period when the transport firm was financially sound, had a good history of servicing facilities with other banks, and maintained a positive credit score with the CRB.
Abai affirms that the turning point came when his primary contacts at the bank, Wycliffe Makori, the Relationship Manager, and Evans Murumba, the Head of Commercial for the Coast region, began exhibiting peculiar behavior and engaging in psychological tactics when he sought access to an invoice discounting facility sanctioned by the bank.
“I would request the drawdown of the facility in the format indicated in the offer letter, but the bank staff would later introduce the loan drawdown,” he described the situation.
Various excuses were offered, citing absent approvers, technical glitches, and lengthy queues.
However, Abai was unaware that this marked the beginning of a prolonged ordeal of extortion, manipulation, and deceit, eventually leading to legal proceedings.
The invoice discounting facility was designed to provide funds for fuel and operating expenses during a time when many businesses faced challenges.
During this phase, the company encountered missed schedules and contract cancellations due to delivery delays, further exacerbating its difficulties.
Simultaneously, Absa staff members devised strategies to corner Abai, coercing him into offering requested sums if he sought their assistance.
Documents obtained reveal a series of M-PESA transactions and bank transfers occurring whenever Abai attempted to withdraw funds, with certain amounts also paid in cash.
In instances when Abai could not immediately fulfill their demands, the bank would credit his account but withhold access until he complied with their kickback requests.
Abai’s complaints to higher bank authorities often went unanswered.
READ ALSO: Absa Kenya officials want me Dead! — New Mega Africa Director David Abai Reveals
Before disbursing loans to New Mega Africa or its clients, they compelled Abai to pay Absa staff members varying amounts, ranging from Ksh 2,000 to 500,000, depending on the circumstances.
The staff even boldly demanded that Abai contribute to an insurance jointly registered under the bank’s and an employee’s name.
They also insisted he transfer money to Makori’s wife.
Efforts to seek help from Regional Manager Doufold Odanga and Branch Manager Mwangi Macharia proved futile.
These payments were supposedly connected to loan disbursement facilitation:
- Makori’s wife, Evelyne Essendi, reportedly received Ksh 100,000 via MPESA on April 24, 2020, to facilitate a Sh3 million disbursement.
- Makori received Ksh 40,000 on November 27, 2022, for the release of Ksh 5,550,555.
- Murumba received Ksh 100,000 on November 13, 2020, for the release of Ksh 5,376,147.
- Murumba’s wife received Ksh 500,000 for the release of Ksh 36 million.
As the situation unfolded, Abai’s company faced further distress as confidential information was shared with third parties and customers, who subsequently furnished him with incriminating emails detailing his company’s compromised financial state.
Despite reporting the matter to Evans Murumba and Sophie Omondi, no resolution was achieved.
An email apology from Sophie offered little solace, as the implicated employee had surprisingly been promoted.
READ ALSO: Mysterious Deaths, Money Laundering, Sex Scandals: The Intriguing Saga of Absa Kenya’s Demise
Several Absa executives, including Director for Retail Banking David Hardistay, Coast Regional Manager Doufold Odanga, and Branch Manager Nkurumah Mwangi Macharia, have been dismissed due to the ongoing New Mega Africa controversy.
As the legal proceedings continue, it remains to be seen how the court will interpret the evidence and deliver its verdict on the matter.
The case highlights the importance of ethical conduct within the banking sector and the need for mechanisms to address such issues transparently and effectively.
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