FMB audit report reveals K9m abused: Chumachienda pleads not guilty

An audit report issued by First Merchant Bank (FMB) has revealed its Dwangwa Branch Manager misappropriated over K9 million and not K4 million as earlier suspected.

The Manager, Neph Chumachienda, 32, from Kankhande village in the area of Traditional Authority Mavwende in Mchinji was arrested on September 28, 2012 for fraudulent accounting.

Nkhunga Police Spokesperson Laban Makalani said according to an audit report issued by the bank, between the months of March to September this year, the suspect made a total of 28 dubious transactions and misappropriated over MK9 million in the process.

Makalani: Police spokesman quotes FMB audit report

“The audit report discloses that the man had stolen the money using previous duly processed cheque numbers belonging to Dwangwa Cane Growers Limited (DCGL) account number 0740269005. The bank had already honoured the cheques with its client (DCGL).

“The statement further reveals that the bank manager had allegedly stolen a total of about K804, 500.00 meant for the bank’s commission after it had processed salaries for employees of DCGL from March to September, 2012,” he said.

Further according to the report, some of the money meant for the commission was deposited into an account number 5716841007 maintained at Mchinji FBM agency and was later cashed by the holder of the account identified as Handson W. Habu.

“A total of K1, 268,200.00 was fraudulently deposited into the suspects’ friends’ and relatives’ accounts maintained at Mchinji and Crossroads FMB agencies.

“Funds totaling to K7, 793,510.00 were also allegedly stolen by the suspect from an account belonging to Dwangwa Cane Growers Limited using duplicate and forged cheques which he fraudulently posted and authorised using his clerks ID,” Makalani said.

The suspect is currently answering three counts: fraudulent false accounting, forgery and theft by servant.

Chumachienda appeared before Nkhunga Second Grade Magistrate Court on October 1, 2012 where he pleaded not guilty to the charges placed over him and has currently been placed on full remand in order to pave way for full police investigations.

The man was netted on September 28, 2012 after Central Region FMB Manager Steven Spencer Kanyika reported the matter to Nkhunga Police after he had received relevant information that the manager had allegedly misappropriated funds.

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