Stanbic bank sued for breach of contract, reported to police for fraud

Stanbic bank sued for breach of contract, reported to police for fraud


Stanbic Bank Zambia Limited has been sued by Blackfire Mining Limited,demanding US$125,000 as damages for breach of contract after the bank allowed a former director for the mine to fraudulently transfer money to his personal account.

And Blackfire Mining Limited has reported five Stanbic Bank employees to the police in Ndola for fraud after the bank negligently allowed a former director in the mining firm, David Lance Morris to withdraw US$125,000, when the bank was instructed not to allow such a transaction.

In a statement of claim filed in the Kabwe High Court, Blackfire Mining is claiming damages for breach of contract from the bank after it allowed Morris, who was removed as a director on July 2, 2020 following a board of directors resolution, to withdraw money from the company account held at Stanbic.
The plaintiff notified the bank on July 3, 2020 that Morris was forthwith not allowed to conduct any business or operations on any of its accounts maintained with the bank.
The mining firm stated further that the bank was on July 15, 2020 served with a letter alongside an order of injunction by its lawyers Magubbwi and Associates and were also informed that Morris was not to conduct any business on the company accounts.
The plaintiff added that the police on July 2, 2020 served a warrant on the bank restricting debit transactions on the accounts as well as online transactions on Morris’s personal accounts to which company funds were being transfered to.
But contrary to its instructions to the bank, Morris between June 29, 2020 and July 13, 2020, fraudulently made transfers from the company accounts to his personal and other accounts of his choice.
The plaintiff stated that Morris transfered US$5000, US$10,000 and US$125,000 on June 29, 2020.
He also transfered US$5,000 on July 9, 2020, another US$10,000 on July 11, 2020 and US$100,000 on July 13, 2020.

The plaintiff stated that Morris was reported to the Zambia Police for fraudulent withdraw of money from the company’s account.

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