Co-op Bank, DPP defend court action against managers

Kenya: Co-operative Bank has defended why it had to prefer charges against two of its managers after they filed a case against the bank and Director of Public Prosecution (DPP) Keriako Tobiko.

The bank in its response to the suit filed by former Procurement managers Samuel Karanja and Maria Muia in a bid to stop prosecution, said it had incurred losses running into millions of shillings after they allegedly doubled the purchase price of rubber bands.

The legal battle between the bank and its employees emanated from Sh1.2 million loss in 2012 in which the bank in its case blamed the same on Karanja and Muia saying they bore the burden to ensure no money was lost through procurement process.

The court heard that on January 23, 2012, the bank through the two had ordered for 3,000 Karatasi Brand rubber bands at a price of Sh220 but it was later discovered there was a company that had offered half the cost of what they bought the rubber bands at.

The DPP also defended the charge against the two, saying there was a likelihood they had colluded to defraud the bank.

The case will resume before Justice Isaac Lenaola on January 30, 2015.