Sterling Bank faces indictment by Nigeria Police for alleged money laundering, fraudulent deductions, and financial mismanagement claims
[dropcap]T[/dropcap]he Nigeria Police have indicted Sterling Bank on allegations of money laundering, fraudulent deductions, and other financial crimes.
Also read: Sterling Bank staff and fraudsters face court over N1.25 billion stolen funds
This revelation came during a report presented on Wednesday to the House of Representatives Committee on Public Petitions, in response to a petition by Maiden Systems Ltd.
Maiden Systems Ltd had accused Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum Development Company of financial mismanagement, fraudulent debits, and misappropriation of funds.
The petition alleged irregularities in accounts held by Maiden Systems with Sterling Bank.
Representatives of the Inspector General of Police, Kabiru Yahaya and Sunny Amison, both Chief Inspectors of Police, disclosed findings from their investigation during the hearing.
Yahaya revealed that despite extensive inquiries and arrests, Sterling Bank failed to provide evidence refuting the allegations.
Yahaya stated:
“In our investigation, we uncovered non-issuance of account statements, fraudulent debits, and misappropriation of funds.
For instance, Maiden Systems raised concerns about accounts operated with Sterling Bank, including significant remittances from Shell Petroleum Development Company.
However, the bank has been unable to provide conclusive proof to counter these claims.”
- A Debt Service Repayment Account (DSRA) used for loan servicing without clear documentation.
Debits totalling $28.3 million allegedly for loan repayments, including $2.4 million and $1.256 million debited on specific dates in 2016.
Discrepancies in loan balances reported by bank officers, with amounts ranging from $27.25 million to over $30 million.
Chief Inspector Amison noted, “We found that funds were transferred between accounts without adequate documentation or justification, suggesting potential money laundering.
Sterling Bank has yet to provide account officers to clarify these transactions.”
The Chairman of the Committee, Mike Etaba, assured all parties that the report would be thoroughly reviewed and justice would prevail.
Also read: Sterling Bank’s salary increment sparks employee backlash
“At the committee level, we will examine the Police report and ensure fairness in resolving this matter,” Etaba said.
