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Dirty Deals At StanbicIBTC Bank As Customer’s Billion Of Naira Disappears

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There is no doubt that the nose-dived economy of Nigeria is taking it turns on the citizens and corporate organisation’s alike. But that does not means that bankers, who ordinarily are supposed to be custodians of trust should turned into pilferers, engaging in fraudulent activities, from outright stealing of customers money, to colluding with criminal elements and even divulging of confidential information.

 

This development according to a source at the security department of the Central Bank of Nigeria (CBN) is giving top officials of the apex bank sleepless nights due to its damaging impact on customer confidence.

 

It could be recalled that last week three employees of Zenith Bank Plc at the banks Ajose Adeogun street, headquarters in Victoria Island, Lagos were whisked away by men of the Special Anti Robbery Squad (SARS), Ikeja, Lagos for their alleged involvement in a $2m fraud.

 

There have been similar cases involving employees of other banks in recent times. However, the scope of what allegedly took place at Stanbic IBTC has left even the law enforcement agencies investigating the matter speechless.

 

According to a Police source, Lonestar Drilling Nigeria Limited in a petition to the Police dated 11th March 2013 alleged that there were unauthorized withdrawals from two of its accounts at the Stanbic IBTC Bank at Walter Carrington Crescent, Victoria Island, Lagos.

 

According to the petition, about N40,903,764.36 (Forty Million, Nine Hundred and Three Thousand, Seven Hundred and Sixty Four Naira, Thirty Six Kobo) and $547,881,26USD (Five Hundred and Forty Seven Thousand, Eight Hundred and Eighty one Dollars, Twenty Six cents) were fraudulently withdrawn from their accounts managed by one Olalekan Kuti.

 

The said petition also noted that results from an internal audit by the company revealed that the said Kuti in connivance with some employees of Lonestar Drilling have been making unauthorized withdrawals from the said accounts under the false pretence of payment of staff salaries without a monthly mandatory payment advice; from the accounts departments.

 

Trouble started when the company discovered cases of diversion of funds, stealing and outright sabortage from some of its directors and it went ahead to suspend them from its management. The directors however colluded with Stanbic IBTC to defraud the company the more and sell off some of its properties at rock bottom prices.

IGP Idris

 

During the course of Police investigation it was discovered that the founder of Lonestar Drilling Chief Humphrey Idisi was purported to have taken a loan facility of $200 million from Stanbic IBTC Bank for the acquisition of two rigs, but after the death of Chief Idisi in 2009, Stanbic IBTC started diverting all proceeds from the company to its own use.

 

Lovette Idisi, son of the founder of the company claimed in his deposition that the company makes about $240,000USD (Two Hundred and Forty Thousand dollars) daily from its two operational oil rigs and that an internal audit indicted some members of the company’s management to fraudulently make withdrawals and divert funds from the company.

 

The petitioner also alleged that since 2009, Stanbic IBTC have refused to disclose how much they have deducted from the oil rigs, moreso, that the Bank colluded with some directors of the company to start selling off some of the properties of the company at below market prices to themselves and their cronies.

 

He gave an example of a new ocean going vessel MV Kinklock acquired by Lonestar Drilling at the sum of N200 million but was sold off by the Bank at a paltry N10 million without the consent of the management of the company. Also the bank sold two heavy duty generators bought at N100 million each but were sold for N50 million each.

 

Chief (Mrs) Margareth Idisi, the Chairperson of Lonestar Drilling and widow of the founder of the company maintained that the loan purported to have been entered by her husband was fraudulent as her husband was not in the right physical frame to have signed any document as at the time in question and that she was with her husband at his hospital bed throughout that period.

 

She alleged that Oladele Kuti should be held responsible for the fraud. She said that as soon as it was discovered that there has been several fraudulent activities in the company, she sacked the management, but that those sacked colluded with the Bank to draw their salaries from the Bank without consulting her.

 

The Police however confirmed that Oladele Kuti confessed to having received documents from the Chairperson regarding the changes in the management of the company but that the Bank refused to honour it because there was no board resolution removing the former directors as at the time the letter was sent to the Bank.

 

He equally confessed bringing it to the notice of the Bank’s management and legal department and that all decisions he took were in line with instructions from the Bank’s management.

 

Further investigations also show that the said Oladele Kuti lives far beyond his means as he has properties far beyond what his job could provide.

 

For example, he has two foreign accounts with Barclays Bank and CitiBank respectively and that he also has two oil companies, a 3 bedroom flat at UPDC Estate Lekki,6 Bedroom apartment Ikorodu,6 plots of land at Olambe, Ogun State,6 plots of land at Mowe, a mortgaged property in London, Frank Enterprises, and Caleb Chroster Limited.

 

Also during investigation, he could not explain what happened to about $15 million US Dollars which is part of the $25 million dollar loan purportedly signed by Chief Idisi.

 

The Police report which reads like an indictment on the Bank shows that Stanbic IBTC failed to produce all the loan agreements as requested by the management of Lonestar Drilling Nigeria Limited. The Police also established that here were abundant evidence of fraudulent withdrawal of funds as contained in the audit report from the company.

 

And that the termination took place due to the frauds uncovered at the company. The Police also noted that the purported $25 million loan said to have been signed by the late Chief Idisi was a fraud as handwriting experts have discovered several discrepancies between the real signature and the forged one. Moreso, that Chief Idisi was sick in the United States as at that time and his wife and those attending to him could not recollect him ever signing any document even though he was not disposed to hold a pen due to the state of his health.

 

Stanbic IBTC was also unable to explain how the 2009 loan extension of $250,000,000 USD was disbursed as no document on that was produced. The Police equally discovered that Oladele Kuti’s account with GT Bank showed all the fraudulent transfers from Lonestar Drilling’s account to his personal account, and that throughout that period he transferred the sum of N14,310,000.00 (Fourteen Million, three hundred and ten thousand naira) from Lonestar Drilling’s account to his personal account.

 

The Police was shocked to find that upon all fraudulent transactions the Bank made a direct debt of $300,000 into the account on July 26th 2010,in benefit of Cammpro Limited with no supporting document for the payment. Equally shocking was that $40,697,50 was made in favour of Stanbic IBTC and Rs Platou was debited directly into the account of Lonestar by the Bank without the consent of the company.

 

This is in addition to the $1,000,000 deducted directly from the company’s account on 31 January 2011 by Stanbic IBTC without approval as there was no bank payment advice raised by the company to reflect the deduction of the said money.

 

It was in view of these very weighty evidences that the Police suggested that the suspects be arraigned in court because according to the Police, there were sufficient evidence for prosecution.

 

To this end Oladele Kuti (Account Officer), Head of Oil and Gas Unit of Stanbic IBTC, Luqman Agboola, a staff of Diamond Bank Plc, Francis Atoju, MD/CEO of Vantage Management consultant and Engr Frances Anene, Former MD/CEO of Lonestars Drilling Nigeria Ltd and others still at large were charged to court on a Nine count charges of conspiracy to commit felony and money laundering.

 

However, this newspaper made efforts to contact Stanbic IBTC to hear its side of the story, Barene Beard the officer contacted asked us to speak with Nkiru Olumide-Ojo who forwarded to us a prepared statement from the bank on the issue which reads thus:

 

“Thank you for your enquiry regarding the Lonestar Drilling Nigeria Ltd vs 8 others, including Stanbic IBTC. As you are aware, there is a case on this matter in the Federal High Court, Port-Harcourt and this precludes us from commenting on this matter. We would like to state however that Stanbic IBTC is a responsible corporate citizen, with confidence in the nation’s legal process, which will show when concluded; that we acted appropriately in this matter.”

 

However, observers are quick to note that Oladele Kuti may be the fall guy for his superiors at Stanbic IBTC who were in the full know of the whole fraudulent activities and they not only gave their go ahead but also approved some of the criminal acts perpetrated by their officer with their knowledge.

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N3bn Fraud Trial: Court permits Yahaya Bello’s accused nephew to travel abroad

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The Federal High Court in Abuja has permitted an accused nephew of former Kogi State Governor Yahaya Bello to travel to the United Kingdom for medical attention.

 

To enable the defendant, Ali Bello, to embark on the foreign medical trip, the court ordered the release of his passport seized from him as part of his bail conditions.

 

Obiora Egwuatu, the trial judge, issued the order on Monday, overruling the objection of the prosecution agency, the Economic and Financial Crimes Commission (EFCC), to grant the accused person’s request.

 

He said the prosecution failed to present convincing evidence to back its claim that Ali would jump bail or tamper with evidence if allowed to embark on the medical trip.

 

He said he had no reason to believe Ali would jump bail, having fulfilled previous undertakings to return to Nigeria to continue his trial on two separate occasions.

 

“Since the grant of bail, he has not breached the terms of bail and has been coming to court to stand his trial.

 

“It is not controverted that this court had on two previous occasions granted the applicant similar prayers.

 

“On those two occasions, that is, between the 1 to 31 August 2023 and 17 December 2023 and 10 January 2024, the applicant did not breach the terms of the permission granted,” the judge said.

 

Stressing the need to ensure a defendant is healthy to stand trial, the judge said, “I wholeheartedly subscribe to the view that a defendant should be alive to stand trial” and face the consequences of his crime if found guilty.

 

Mr Egwuatu ordered the court’s deputy chief registrar who keeps Ali’s passport to release it to him, the News Agency of Nigeria (NAN) reports.

 

He also ordered the defendant to return the passport on or before 15 September.

 

Series of charges relating to Kogi funds

Ali and three others are standing trial on money laundering charges involving N3 billion allegedly diverted from the Kogi State coffers during former Governor Bello’s tenure.

 

The three co-defendants in the case are Abba Adaudu, Yakubu Siyaka Adabenege and Iyadi Sadat.

 

The case is only one in a series of prosecutions the EFCC brought against Ali, Mr Bello and their associates over their alleged fraudulent handling of Kogi State Government’s funds.

 

Ali and a co-defendant, Dauda Sulaiman, are charged with money laundering in another case involving the alleged diversion of N10 billion of Kogi State’s funds. The case is before a different judge of the Federal High Court in Abuja, James Omotosho. The prosecution has already called seven witnesses in the trial.

 

Mr Bello, the former governor, faces money laundering charges involving an alleged diversion of Kogi State’s N80 billion in a separate case before Mr Omotosho. Both Ali and Mr Suleiman are named as accomplices in the case.

 

EFCC brought the charges against Mr Bello after completing his two terms of eight years as governor in January but has been unable to get him to court for arraignment.

 

Since April, Mr Bello has shunned six court sessions scheduled for his arraignment, which has now been rescheduled for 25 September.

 

Ali’s medical trip request

On 5 April, Ali filed an application in the trial before Mr Egwatu seeking an order to release his passport from the deputy chief registrar of the court to enable him to travel abroad for medical consultation and examination.

 

He said the trip was to fulfil a routine cardiologic follow-up to review his medication and undergo cardiac tests.

 

He said he received medical advice to undergo the process annually.

 

He also recalled that the judge had granted him similar permissions to embark on the foreign medical trip on two occasions – first between 1 and 31 August 2023 and second between 17 December 2023 and 10 January 2024.

 

He said he returned to Nigeria on both occasions and returned his passport to the court’s deputy chief registrar as he was ordered to.

 

He pleaded with the judge to order the release of his passport again, undertaking to return it to the official upon his return from the UK to Nigeria.

 

The defendant also gave an assurance to be law abiding in the UK.

 

EFCC opposes request

The EFCC opposed the application.

 

Arguing against the request in court, EFCC’s prosecuting counsel, Rotimi Oyedepo, a SAN, cited a five-paragraph counter-affidavit detailing reasons for the commission’s objection. An EFCC official, Abubakar Salihu Wara, swore to the facts in the document on 19 April.

 

Mr Oyedepo argued that Ali failed to place any medical report before the court to show the health condition that necessitated the medical appointment.

 

Mr Oyedepo said Exhibit ‘A’ attached to the application did not disclose the email address of the sender and the receiver of the said medical appointment.

 

He added that the applicant did not present anything to show that Exhibit ‘A’ emanated from the London Centre for Advanced Cardiology as claimed.

 

He argued that Ali might tamper with evidence gathered for his prosecution if his application is granted.

 

However, Ali filed a further affidavit to dispute the prosecution’s claims.

 

Ruling

Apart from banking on the reputation Ali had earned by fulfilling his promises to return to Nigeria when granted the foreign trip permissions on two previous occasions, the judge also ruled that EFCC’s reasons for objecting to the request were not convincing.

 

Mr Egwatu held that EFCC failed to show that the name of the London hospital Ali planned to visit and its address “are not in existence”. He said there was no contrary evidence disputing the fact that the applicant “has a scheduled appointment with the said cardiologist.”

 

According to him, there was also no evidence presented by the EFCC to show that while Ali was on bail, he did or attempted to interfere with evidence or collude with any person to tamper with evidence.

 

The judge further said that a defendant ought to be healthy to stand the rigours of trial.

 

Former Central Bank of Nigeria (CBN) governor Godwin Emefiele, facing multiple corruption trials, recently applied to the High Court of the Federal Capital Territory, Abuja, to seek medical attention in the UK, but the court rejected the request.

 

The judge in the case upheld EFCC’s objection, which was argued by Mr Oyedepo, the same prosecutor in Ali’s trial.

 

(NAN)

 

 

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Reps ask FG to suspend NMDPRA boss over anti-Dangote refinery comment

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The House of Representatives has called on the Federal Government to suspend the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, pending the conclusion of the investigations of allegations against what it called the unguarded statement by the CEO.

 

The resolution of the House followed the adoption of a motion of urgent public importance sponsored by the member representing Esosa Federal Constituency, Edo State, Esosa Iyawe, during Tuesday’s plenary on the need to address issues arising from Farouk’s utterances about the nation’s local refineries.

 

The lawmaker reminded his colleagues that claims of adulterated fuel in the Nigerian market must be thoroughly investigated, stating that fuel quality can impact engine hardware.

 

This he said, is the reason ultra-low sulphur diesel is recommended for all types of power plants, storage tanks, industrial facilities, fleets and heavy equipment, and even ships, as high sulphur content in fuels, causes damage to engines and contributes to air pollution.

 

He said considering the various risks associated with sulphur, countries across the world have taken steps to regulate it by setting standards that require maximum reduction of emissions of this chemical compound, which diesel producers are expected to adhere to.

 

The Labour Party lawmaker, however, noted that the NMDPRA permits local refiners to produce diesel with Sulphur content of up to 650 parts per million until January 2025, as approved by the Economic Community of West African States.

 

He quoted the NMDPRA boss as saying that the diesel produced by the Dangote Refinery is inferior to the ones imported into the country and that their fuel had a large content of sulphur, which he put at between 650 to 1,200 ppm.

 

 

“In their defence, Dangote called for a test of their products, which was supervised by members of the House of Representatives, wherein it was revealed that Dangote’s diesel had a Sulphur content of 87.6 ppm (parts per million), whereas the other two samples diesel imported showed sulphur levels exceeding 1800 ppm and 2000 ppm respectively, thus disproving the allegations made by the NMDPRA boss.

 

 

“Allegations have been made that the NMDPRA was giving licences to some traders who regularly import high-sulphur content diesel into Nigeria, and the use of such products poses grave health risks and huge financial losses for Nigerians.

 

“The unguarded statements by the Chief Executive of the NMDPRA, which has since been disproved, sparked an outrage from Nigerians who tagged his undermining of local refineries and insistence on the continued importation of fuel an act of economic sabotage, as the imported products have been shown to contain high levels of dangerous compounds.”

 

He condemned what he called the careless statement by Farouk, noting that “Without conducting any prior investigation, he was not only unprofessional but also unpatriotic, especially in the face of the recent calls for protest against the Federal Government.”

 

Recall that a joint committee of the House on Monday, July 22, 2024, commenced investigations into Farouk’s allegations against Dangote Refinery.

 

The panel, made up of the Committees on Petroleum (Downstream and Midstream) is also conducting a legislative forensic investigation into “The presence of middlemen in crude trading and alleged unavailability of international standard laboratories to check adulterate

d products”, among others.

 

 

 

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Democrats Raise Over $40 Million Online Following Biden’s Presidential Race Exit

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In a remarkable display of financial support, Democrats raised more than $40 million online following President Joe Biden’s announcement that he would be exiting the presidential race. This surge in donations, which occurred on Sunday, marked the most significant single day of online contributions for the Democratic Party since the 2020 election.

According to a New York Times analysis of ActBlue’s online contribution tracker, the wave of donations began shortly after President Biden’s withdrawal and coincided with Vice President Kamala Harris gaining momentum in the nomination race. Prior to Biden’s announcement, donations were averaging less than $200,000 per hour. However, within just one hour after the news broke, donations soared to $7.5 million.

The ActBlue platform processes contributions for various Democratic candidates and causes, not limited to Biden or Harris. It includes donations to Democratic House and Senate candidates as well as political nonprofits. The overall increase in donations highlights the unified support within the party during a pivotal moment.

Kenneth Pennington, a Democratic digital strategist, expressed his enthusiasm on X (formerly Twitter), stating, “This might be the greatest fundraising moment in Democratic Party history.” The previous record for single-day donations on ActBlue was set after the death of Justice Ruth Bader Ginsburg in September 2020, with approximately $73.5 million processed. Sunday’s donations, reaching over $50 million by the end of the day, made it one of the platform’s most successful days ever.

The influx of contributions comes at a critical time for the Democratic Party, which has been grappling with internal conflicts and a need to regain momentum in the race aga inst former President Donald J. Trump. Fundraising had significantly slowed among major Democratic donors following President Biden’s underwhelming debate performance, but his departure from the race seemed to galvanize the party’s base.

Biden’s exit and his endorsement of Vice President Harris appeared to unify Democratic supporters, resulting in a dramatic spike in contributions. As Harris builds momentum to secure the nomination, the financial backing will undoubtedly play a crucial role in her campaign.

President Biden’s withdrawal had been anticipated by many, although the timing came as a surprise. He announced his decision while recovering from Covid at his Delaware beach house. In a letter posted on X, Biden reflected on his presidency, calling it the “greatest honor of my life.” He emphasized that stepping down was in the best interest of the party and the country, allowing him to focus on his duties for the remainder of his term.

Biden’s endorsement of Harris was swift and unequivocal, with his campaign quickly rebranding to “Harris for President.” Prominent Democrats and potential rivals, including California Governor Gavin Newsom, promptly voiced their support for Harris.

The surge in donations following Biden’s exit signifies a critical juncture for the Democratic Party. With substantial financial resources now at their disposal, the party aims to leverage this momentum to overcome recent challenges and strengthen their position in the upcoming election.

 

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