$28.3 Million Debits: Sterling Bank Indicted In Fraud, Money Laundering Probe
The Nigeria Police Force has indicted Sterling Bank over allegations of money laundering, fraudulent deductions, and other financial crimes committed by its staff.
This was disclosed last Wednesday during a hearing by the House of Representatives Committee on Public Petitions on a petition filed by Maiden Systems Limited.
The petition, which also named the Central Bank of Nigeria (CBN) and Shell Petroleum Development Company as respondents, accused Sterling Bank of mismanagement, fraudulent debits, and misappropriation of funds from the company’s accounts.
Representing the Inspector General of Police, Chief Superintendents of Police Kabiru Yahaya and Sunny Amison presented a detailed report of the police investigation, which confirmed the bank’s culpability.
“We were tasked with investigating claims of mismanagement, fraudulent debit, and misappropriation of funds from Maiden Systems Limited’s accounts with Sterling Bank,” CSP Yahaya told the Committee.
“Our findings revealed non-issuance of account statements, suspicious debits, and significant financial discrepancies.”
Yahaya disclosed that the company’s accounts—two in U.S. dollars and two in Nigerian naira—were at the center of the alleged misconduct.
He noted that despite substantial remittances from Shell Petroleum Development Company between 2017 and 2020, the bank failed to provide sufficient financial reports or counter the allegations.
CSP Amison highlighted further irregularities, particularly in a Debt Service Repayment Account (DSRA) associated with a $30 million loan restructured in 2017.
He detailed unexplained debits amounting to over $28.3 million from Maiden Systems Limited’s account between 2016 and 2017, including:
$2.413 million on September 29, 2016,
$1.256 million on November 14, 2016, and
$28.302 million on January 16, 2017.
Amison criticized the bank’s failure to provide clarity, stating, “We expected the bank to present account officers who managed the account to explain these transactions, but this was not done. The bank’s own documents corroborate allegations of financial mismanagement, fraudulent debits, and potential money laundering.
”The police concluded their investigation by recommending further action, emphasizing that Sterling Bank had failed to disprove the claims against it.Chairman of the Committee, Hon. Mike Etaba, assured all parties that the report would be carefully reviewed, promising fairness and justice.
“At the committee level, we will examine the police report thoroughly, and I assure everyone that justice will prevail,” Etaba said.
