NAIROBI, Kenya Sep 28 – The Senate Finance Committee has been urged to specify precisely what actions should be taken by the Central Bank of Kenya (CBK) in maintaining banking hygiene in cases involving deceased persons.
Nominated Senator Miraj Abdullahi said the majority of Kenyans endure needless suffering when an account holder passes away.
“Many banks in Kenya subject the common mwananchi to a lot of unnecessary anguish, especially whenever there is the death of an account holder/customer involved,” he said.
The senator who brought up the matter of Noor Ali Islam Jeizan, the late Anwar Mohammed Bayussuf’s wife, said the widow was informed that Diamond Trust Bank (DTB) had allegedly overdrafted Sh59.3 million from the deceased’s account on June 6, 2011.
He said that the deceased had an account with DTB and that he and his wife were the owners of the transport company Bayussuf Brothers Limited.
According to the senator, the widow acknowledged that she was unaware of the transaction and did not authorise it.
The Senator further claimed that the cash in question was never credited to the company’s account because the account was dormant and had no balance at the time the purported overdraft was made.
“She confirms that she was not aware of the transaction, did not authorize it, and the said amount was never credited to the Company’s account, as the account was dormant with zero balance during the period the overdraft was alleged to have been made.”
“On further enquiry, the bank claimed the deceased issued the instructions but in the absence of any documentation, it is difficult to verify this transaction/claim,” he revealed.
He added that the deceased wife later lodged a complaint with the Department of Banking Fraud at the Mombasa branch of the CBK, but despite his demands that the CBK should address the matter, no action was taken.
This is after Noor Ali Islam Jeizan claimed that DTB auctioned off the company’s trucks and a plot of land valued at Sh70 million without following the proper legal procedures.
“The Committee should explain specific measures CBK took to sanction DTB for failing to provide to its customer the information sought and disclose full information on who authorized the loan and the transactions therein,” he said.
