Following a contentious loan arrangement given to Miden Systems Limited, a Lagos-based oil and gas business, Sterling Bank has been charged by the police with $122 million fraud and money laundering.
According to information gleaned by People’s Gazeete on Tuesday from a police report dated January 14, 2025, Sterling Bank gave the business a $30,000,000 credit facility in 2012 so that it could carry out a project with Shell Petroleum Development Company of Nigeria (SPCD).
The report noted, “It is apparent that Sterling Bank has not produced evidence to debunk the allegations of Miden Systems Limited. Evidence corroborates alleged offences of financial mismanagement, fraudulent debits, misappropriation of funds, stealing and money laundering.”
When the company alleged that the bank had improperly handled over $122 million that Shell had sent into its account as payment for the services it had rendered, the conflict between the two parties started.
Feeling duped, the corporation petitioned the House of Representatives’ Committee on Public Petitions, accusing the bank of improper and illegal management of funds from its loan accounts.
After receiving the petition, the House Committee immediately sent it to the Inspector General of Police for review.
“That Sterling Bank manages two Debt Services Repayment Account (DSRA) Account Nos 0021992868 USD CURRENT and 0021992837 NGN CURRENT for Maiden Systems Limited,” the report noted.
It added, “That on 29/08/2016 the sum of $1,200,000 was debuted from the company’s account number 0014851716 as transfer out Red: FT16242QSSQN1 to no particular account and the account officer Lekan Olakunle stated that it is being reviewed for proper feedback (which was not provided for over a month.
“That on 27/09/206 the sum of $2,413,685.61 was debited from the company’s account No 0014851716 to AA Loan Repayment Ref: FT16271UZYO. On 14/11/2016 the sum of $1,256,634.58 was debited from the company’s account No 0014851716 to AA Loan Repayment Ref: FT16319JJBH7. On 16/16/01/2017 the sum of $28,302,140.59 was debited from the company’s account No. 0014851716 to AA Loan Payoff Ref: FT170167YJNH.”
According to the report, the bank did not offer any proof to refute the company’s allegations that it was not given its account statement and that it was never given details of the debits made from its account.
It further noted that when they were questioned on the meaning/term of AA Loan Repayment, account officers “Dele Fasemo and Lekan Olakunle stated that it was a mere narration adopted at the point of applying funds into the company’s loan repayment. This is vague and ambiguous as it negates the principles of transparency and accountability.”
A public hearing on the matter was set by the House of Representatives shortly after the report was made public, according to information. To avoid embarrassment, the bank’s management sought an ex parte order from a court to suspend the hearing.
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Additionally, it was discovered that Innocent Usoro, who submitted a brief on the company’s behalf, said that the bank had fabricated facts pertaining to the petition’s accusations in order to deceive the court and get an injunction.
The bank to ask for comments on the situation, but the corporate head of communications declined.
The report “recommended that the report be forwarded to the Federal House of Representative Committee on Public Petitions so as to take informed decisions on the case.”
Meanwhile, it was gathered that a court hearing on the case is scheduled for tomorrow
