The Mzuzu Senior Resident Magistrate’s Court has convicted three former employees of Ecobank Malawi Limited for their involvement in a K129.9 million fraud at the Mzuzu branch, committed between May and June 2022.

The convicted individuals, John Madalitso Chizunza, Peter Chiwaula, and Kelvin Maseko, faced six charges, including fraudulent false accounting and theft by servant, in violation of sections 335(a) and 278 of the Penal Code. Senior Resident Magistrate Ashford Harawa found them guilty, and sentencing submissions will be heard on November 19, 2024, with the final sentencing date to be announced.

The court revealed that Chizunza, who had been engaged in a private money-lending business, was using Ecobank’s funds to lend money to individuals, particularly contractors who didn’t qualify for the bank’s official loans. During the fraudulent activities in May and June 2022, Chizunza (then the branch manager) and Chiwaula (a bank teller) allegedly falsified transactions on account number 5475000003881, owned by Sanaa Cash ‘n’ Carry, transferring K110 million without authorization.

On June 3, 2022, Maseko also withdrew K19.9 million from Zanak Pharmaceutical’s account without authorization, leading Ecobank to cover the misappropriated funds to maintain the account’s balance.

Ecobank’s lawyer, Gabriel Chembezi, expressed satisfaction with the ruling, emphasizing that the fraudulent actions had caused the bank significant financial loss. Chembezi noted that the false accounting aimed to cover up the theft by concealing a deficit in the bank’s vault caused by Chizunza’s misappropriation.

The trial began in October 2022, with the State presenting 15 witnesses to secure the convictions. The defense team from John Tennyson, Kawelo Lawyers, has not yet commented on the verdict.

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