US$4.4m heist: Police claims of inside job leads to clash between Ecobank, Safeguard and insurance companies

The recent US$4.4 million heist at Ecobank’s Bulawayo branch has sparked a complex battle involving the bank, its security contractor SafeGuard Security, and insurance companies. The Zimbabwe Republic Police’s suspicion of inside help has added another layer of complexity, raising questions about insurance coverage and contractual obligations. The robbery, which occurred in just 149 seconds, involved six armed robbers targeting a SafeGuard Security cash-in-transit van.

The narrative is far from straightforward, with an Ecobank employee suggesting that the responsibility for the security of the cash lay with SafeGuard Security after it left the bank’s premises. SafeGuard Security CEO Andrew Mallon has publicly criticized Ecobank for failing to disclose the unusually large sum of money being transported, stating that this was “well outside any contracted limits” and placed the safety of staff and security teams at risk. This hints at potential insurance complications, with insurers possibly refusing compensation for losses exceeding agreed-upon limits.

 

The situation has devolved into a blame game between Ecobank and SafeGuard, with each party attempting to deflect responsibility. The Zimbabwe Republic Police’s investigation into possible insider collusion has further complicated matters. National police spokesperson Commissioner Paul Nyathi confirmed that all possible suspects are being questioned, and the police are leaving no stone unturned in their efforts to bring the perpetrators to justice.

The Insurance Council of Zimbabwe has clarified the various insurance policies available to banks to mitigate such risks, including cash-in-transit insurance and professional indemnity insurance. The ICZ emphasized the importance of both parties adhering to agreed-upon security measures to minimize risks, warning that breaches of policy conditions can lead to claim repudiation. As the investigation unfolds, the outcome will have significant implications for Ecobank’s financial recovery prospects and the future of its partnership with SafeGuard Security.

Source: https://www.myzimbabwe.co.zw/news/176107-insurance-company-vs-ecobank-vs-safeguard-whats-next-as-police-say-bank-employees-helped-robbers-to-steal-us4-4-million.html

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