Fiscal Section of Malawi Police in Blantyre has arrested three employees of FDH Bank over a fraud amounting top K110.8 million.
The arrested FDH Bank employees have been identified as James Gwaza, Mphatso Njala and Ronald Madondolo.
Head of Fiscal and Fraud Section, Isaac Norman, confirmed the arrest, saying they three worked in the bank’s Finance and Treasury Department were Njala and Gwaza were supervisors. Mandolo works as a clerk.
He said investigation shows the scam was done between October 2016 and July 2017.
Norman said Madondolo and Njala are also connected to another operation of a K55 million fraud at FDH Bank which led to the arrest of the bank’s former executive, Mathias Silumbu, who now works as chief finance officer at NBS Bank
Silumbu is alleged to have committed the crime earlier this year while working for FDH Bank as head of finance before his resignation to join NBS Bank as chief finance officer.
“According to our investigations to the matter, Njala and Madondolo were being used by Silumbu,” Norman said.
But after being carried away with the defrauding, Njala did open other three bank accounts and transferred about K55.8 million without the knowledge of Silumbu.
Norman said police investigations have established that after defrauding FDH Bank, Silumbu used to deposit the money into the bank account of his house servant (only identified as Gunda) and would later transfer the funds to his two other personal accounts with two different local commercial banks.