Elderly Bulawayo couple sentenced for exploiting bank glitch

An elderly couple from Bulawayo, who took advantage of a technical glitch at Stanbic Bank Zimbabwe to embezzle over US$30,000, has been sentenced to seven years in prison.

Frank Sibanda and his wife, Francisca Netsai, both aged 65, went on an extravagant shopping spree across Zimbabwe and South Africa after erroneously receiving the funds in Francisca's account. The couple was convicted on 47 counts of theft by Bulawayo regional magistrate Mrs. Dambudzo Malunga. However, their sentence was significantly reduced, with four years suspended for five years on the condition that they do not commit similar offences. The remaining three years were also suspended, provided they repay the stolen amount to Stanbic Bank through the clerk of courts by June 20.

In her ruling, Mrs. Malunga treated all 47 counts as a single offence and cited overwhelming evidence that the bank had mistakenly credited the money into Francisca's account, which was then unlawfully withdrawn. While the crime carries a potential penalty of a Level 14 fine or up to 25 years in prison, mitigating factors such as their status as first-time offenders, advanced age, and Francisca's poor health influenced the judgment.

"You committed a very serious offence, prejudicing Stanbic Bank of a substantial sum. However, the court has tempered justice with mercy in the interest of fairness," Mrs. Malunga stated, also considering that the couple is responsible for their six-year-old grandchild.

Their lawyer, Mr. Jabulani Ndubiwa of Mashayamombe and Company Attorneys, pleaded for a non-custodial sentence, citing Francisca's severe health conditions and their caregiving responsibilities.

The case came to light following a routine audit by Stanbic Bank's forensic department, which detected irregularities in financial records, leading to the couple's arrest.

According to prosecutor Mr. Owen Mugari, the incident began on February 5 last year when Francisca opened a Silver Banking account at Stanbic Bank's Joshua Nkomo Street branch in Bulawayo. Her daughter, Rudo Sibanda, falsely claimed that Francisca was employed by her Harare-based firm, Cominergy Construction Mining Energy, to facilitate the account opening.

Francisca was issued a Visa card (number ending in 0711) linked to the account. On April 5, she attempted to purchase goods worth US$17.95 at National Foods Bulawayo using a Steward Bank ZiG POS machine, but the transaction failed. During the interbank settlement process, Steward Bank mistakenly reversed the transaction through ZimSwitch, inadvertently crediting her US dollar account with an inflated ZWG 579,116.21, equivalent to US$40,850.86.

Realizing that the error had gone unnoticed, the Sibandas embarked on a lavish spending spree. Between April 30 and May 1 last year, they withdrew US$2,025 in cash from Stanbic Bank in Bulawayo and spent US$32,085.47 in South Africa using ATM and POS transactions. Their purchases included visits to high-end food and beverage markets in Johannesburg's Sandton suburb and shopping at the trendy Maboneng Precinct, known for its boutiques and art galleries.

The forensic investigation revealed the extent of their fraudulent withdrawals, leading to a police report and their eventual arrest. Authorities established that the total amount stolen was US$34,110.47, none of which has been recovered.

The case serves as a cautionary tale on financial integrity and the consequences of exploiting banking errors.