Police accuse Sterling Bank of $122 million fraud, money laundering amid face-off with Lagos-based oil firm
The police have accused Sterling Bank of $122 million fraud and money laundering following a controversial loan facility granted to Miden Systems Limited, an oil and gas company based in Lagos.
Details of a police report dated January 14, 2025, and obtained by Peoples Gazette on Tuesday indicated that Sterling Bank granted a $30,000,000 loan facility to the company to execute a project with Shell Petroleum Development Company of Nigeria (SPCD) in 2012.
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.”
The face-off between the two parties started when the company alleged that the bank mismanaged over $122 million Shell paid into the company’s account as settlements for the rendered services.
Feeling that it was cheated by the bank, the company submitted a petition to the House of Representatives’ Committee on Public Petitions, alleging shoddy and criminal management of funds from the company’s loan accounts.
Following receipt of the petition, the House Committee immediately referred it to the Inspector General of Police for investigation.
According to the report, the police found that the company operated four accounts — two naira and two dollars accounts — with Sterling Bank and that the entire proceeds of the company’s contract with SPDC was domiciled with the bank.
“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.”
The report indicated that the bank failed to provide evidence to debunk the company’s claims that it was denied its statement of accounts and it never got records of 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.”
Shortly after the report was released, The Gazette gathered that the House of Representatives scheduled a public hearing on the case, which prompted the executive of the bank to approach a court for an ex parte injunction stopping the hearing to save the bank from any embarrassment.
It was also gathered that Innocent Usoro, who filed a brief on behalf of the company, claimed the bank misled the court to secure an injunction by falsifying facts related to the allegations outlined in the petition.
The bank’s corporate head of communications declined The Gazette’s phone call seeking comments on the development.
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 (Wednesday.)
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