Mathew Amaechi
In a shocking turn of events, the Nigerian Police have indicted Sterling Bank PLC over alleged money laundering, fraudulent deductions, and other financial crimes perpetrated by its staff members.
This damning indictment stems from a petition filed by Maiden Systems Ltd against Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum.
According to the police report presented to the House of Representatives Committee on Public Petitions, Sterling Bank failed to provide evidence to counter the allegations of mismanagement, fraudulent debits, and misappropriation of funds from Maiden Systems Ltd’s account. The investigation revealed discrepancies in the bank’s statement of accounts, including unexplained debits totaling US$28.3 million for loan repayment.
Presenting the report before the committee at the National Assembly, the representative of the Inspector General of Police, Kabiru Yahaya, and Sunny Amison, both Chief Inspectors of Police, stated that after intensive investigations and arrests, the bank was found culpable.
We were saddled with the responsibility to investigate mismanagement, fraudulent debits, and misappropriation of funds from the account of Maiden Systems Limited by Sterling Bank.
In the course of our investigation, findings emerged about the issue of non-issuance of statements of account, fraudulent debits, and misappropriation of funds. More importantly, Maiden Systems Limited raised the issue of accounts. There are four accounts operated by Sterling Bank Plc for Maiden Systems Limited. Two are U.S. dollar accounts, while two are Nigerian NGN accounts.
Major remittances are coming to the account of Maiden Systems Limited, to be signed with Sterling Bank and Shell Petroleum Development Company Limited. Now, we have cutting records from Shell over the period 2017 to 2020. Shell failed—this is our finding—Shell failed to supply the financial reports for 2021, 2022, 2023, and 2024.
Now, having regard to the complaint of Maiden Systems that it was denied the statement of accounts, we interfaced with an account officer, who gave us in writing that the company is being furnished with the statement of account. And I asked how, and he said electronically or by short message service. But there is no proof. There’s no proof to debunk that aspect of the allegation.
Secondly, we discovered from the statement of account generated by the bank, not provided by the petitioner, its counsel, or any third party—these are accounts and statements of accounts generated by the bank. Ordinarily, before an investigator, we did not just call for a statement of account to just look at it and dump it.
We looked at it holistically and saw the grey areas where there were discrepancies or where questions needed to be raised.
The police also discovered a Debt Service Repayment Account (DSRA) with suspicious transactions, prompting concerns about money laundering. The bank’s inability to provide clear explanations for these transactions has raised eyebrows, with the police recommending further investigation into the alleged financial mismanagement and fraudulent activities.
This development comes on the heels of previous controversies surrounding Sterling Bank, including a N19.3 billion Kogi State Salary Bailout fund that was recovered by the EFCC and returned to the CBN. In another instance, three CBN employees and two Sterling Bank staff were remanded in prison custody for allegedly defrauding the apex bank and other banks of N1.141 billion.
The Chairman of the Committee, Mike Etaba, has assured that the report will be studied, and justice will prevail. As the investigation unfolds, one thing is clear: Sterling Bank’s reputation is on the line, and the consequences of these allegations could be severe.