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Tag: bank

  • Firm’s N2b suit against bank for Nov. 16

    A Lagos State High Court, Igbosere, has adjourned till November 16, a suit by Infinity Snacks and Beverages Ltd, seeking N2,076,801,430.42 from Stanbic IBTC Bank as damages for alleged breach of contract.

    In the suit filed by its counsel Olumide Sofowora (SAN) before Justice A. M. Lawal of a Lagos State High Court, Igbosere, the firm said it suffered economic misfortune from the bank’s conduct.

    According to its December 23, 2016 statement of claim, it said it received approval for a N934,029,835 loan for factory expansion from the Bank of Industry (BOI) Ltd on August 19, 2014.

    BOI required a bank guarantee as one of the conditions for the loan and the firm sought this from Stanbic IBTC Bank, “which was not issued until December 22, 2015, about four months after the approval of the loan by BOI.”

    BOI disbursed N864,420,000 into the bank’s account in the firm’s name on May 9, 2016, but, according to the firm,  Stanbic IBTC did not inform it until May 17, 2016.”

    The firm said it immediately mandated the bank to bid for foreign exchange for the purchase of the needed machinery for its expansion.”

    It claimed that the bank put “stumbling blocks” along the way by tying the BOI loan to its own loan portfolio granted to the firm.

    However, the defendant, in its statement of defence filed through its counsel, Mr Paul Usoro SAN, rejected the plaintiff’s claims.

    It said: “The defendant denies that there was an initial approval from BOI and states that rather what the claimant received was an indicative offer from BOI of its intention to grant the claimant’s loan request of the sum of N934,029,8350 subject to the claimant fulfilling the conditions for the grant of same.

    “…the defendant states that it did not hold back but swung into action almost immediately the claimant notified it of BOI’s indicative offer, request for a Bank Guarantee (BG) and a letter of intent on behalf of the claimant from a reputable financial institution, amongst other conditions precedent to granting the claimant the BOI facility.

    “The defendant avers that on the contrary it is the claimant who failed to meet up the defendant’s pre-conditions for issuing a bank guarantee in its favour.”

  • Why Nigeria’s economic growth is slow, by bank chairman

    First Bank Plc Chairman Mrs. Ibukun Awosika has explained why there is slow economic growth in Nigeria.

    She said the national economy may not improve unless women empowerment is given a priority.

    Addressing the opening session of the International Law Students Association Conference at the Obafemi Awolowo University, Ile Ife, Awosika said statistics of gender distribution of Nigeria’s population indicate that women account for 48 per cent of the working population.

    Speaking on the theme of the conference: “Rethinking the role of women in modern day Africa,” she maintained that lack of empowerment provision for such a high number of people expected to contribute positively to the national economy, no doubt, would have negative impact on the general wellbeing of the populace.

    Mrs. Awosika said: “Almost 50 per cent business potentials of Nigeria are locked up because women were not empowered. Every Nigerian must be ready to lead right within his or her space. Women should work towards retaining values in them over a long time.”

    She noted that the society seemed to be deliberately working against giving women the needed support to operate.

    Mrs. Awosika added that as long as the status quo remains, the country may continue to record poor economic growth.

    The bank chairman noted that the long held belief that women with good economic means or career cannot keep home-front should be discarded.

    According to her, despite being married for 27 years and facing daring challenges of keeping her marriage, she said she has managed to combine effectively managing her home and career.

    She said: “I was three years old in my business when I got married. And I have been married for 27 years. You can be a successful career woman or business owner and still keep your home-front intact. Women constitute 48 per cent of Nigeria’s workforce. If that huge number is left with no meaningful contribution, economy cannot grow.

    “Women can manage business successfully, but we need to empower them. I urge you all to follow your dream with passion, the result is always big. The place of your birth is beyond your control, but what you make of your life is what matters.”

  • EFCC charges firms, directors for duping bank of N7.8b

    EFCC charges firms, directors for duping bank of N7.8b

    The Economic and Financial Crimes Commission (EFCC) has accused two oil service companies and their directors of defrauding a bank  of over N7 billion.

    It filed charges against the directors, Ogbor Kehinde Eliot, Godwin Okoronkwo, and the oil firms, Danium Energy Services Ltd and Petrosol Energy Ltd, at the Federal High Court in Lagos.

    The commission said they allegedly defrauded the bank of N7,802,649,000.

    The agency said they presented forged documents to the bank after claiming to have been awarded multi-billion naira contracts by Total Nigeria Plc.

    The defendants claimed they got contracts to supply thousands of metric tonnes of diesel and needed funding.

    EFCC, in the charge signed by prosecuting counsel Rotimi Oyedepo, said the four, on or about October 5, last year, in Lagos, with intent to defraud, conspired to induce the bank to deliver N1,573,146,000 to Danium Energy Services.

    The commission said it was under the false pretense that Total Nigeria Plc contracted Danium Energy Services to supply 10,000 metric tonnes of Automotive Gas Oil (AGO) for N1,990,440,000.00 .

    EFCC said the accused persons, on November 15, last year, with intent to defraud, induced the bank to deliver N1,573,146,000 to Danium Energy Services.

    The commission said Eliot and Danium Energy Services on or about January 30 in Lagos conspired to induce the bank  to deliver N3,339,225,000 to Danium Energy Services.

    EFCC said they claimed that Total Nigeria Plc, through a letter dated January 30, contracted Danium Energy Services to supply 15,000 metric tonnes of Automotive Gas Oil (AGO) for N4,103,100,000.

    Eliot and Danium Energy Services were alleged to have collected the N3,339,225,000 from the bank on February 3.

    The prosecution said on February 9, Eliot and Danium Energy Services allegedly conspired to induce the bank to deliver N2,890,278,000 to Danium Energy Services.

    According to EFCC, they pretended that Total Nigeria Plc, vide a February 9 letter, with Ref No: OPS/SUP/02/17/125, contracted Danium Energy Services to supply 15,000 metric tonnes of Automotive Gas Oil (AGO) for N4,015,800,000.

    They were said to have collected the money on February 17 in Lagos by inducing the bank to “deliver” it to Danium Energy Services.

    The alleged offence is contrary to Section 8 (a) of the Advance Fee Fraud and other Fraud Related Offences Act, 2006 and punishable under Section 1 (3)of the same Act.

    The defendants were also accused of “uttering” (presenting) a forged document dated October 5, 2016 with Ref No: OPS/SUP/10/16/361 to the bannk.

    The alleged offence is contrary to Section 19(6) and punishable under Section 1(2)(c) of the Miscellaneous Offences Act, Cap M17, Laws of the Federation of Nigeria 2004.

    The accused persons were also accused of “uttering” of a forged document dated January 30 with Ref No: OPS/SUP/01/17/084 to the bank.

    The defendants are yet to be arraigned.

  • Bank workers ‘won’t be part of ULC strike’

    •Financial institutions, others to use NIMC verification mode

    The National Union of Banks, Insurance and other Financial Institution Employees (NUBIFIE) has dissociated itself from the planned nationwide strike being called by the yet-to-be registered United Labour Congress (ULC).

    It asked its members to ignore the strike and go about their normal duty.

    The union’s president, Comrade Andulrasheed Lukman, said in a statement in Abuja that it has also decided to nullify its affiliation to the ULC and return to its former affiliation with the Nigeria Labour Congress (NLC).

    Lukman said the decision to affiliate with the ULC was taken against the union’s constitution.

    He said the association’s National Delegates Conference resolved and passed a resolution that it should return to the NLC.

    The statement reads in part: “The new leadership of the union states categorically that the union is not aware of and will not partake in any planned industrial action as called by the ULC. The process of engaging in industrial action is well-stipulated in the laws of the land and rules of engagement.

    “The union just concluded its delegates’ conference and a new leadership emerged. There are a number of issues that beg for attention in what has been happening in our industry, shutting the financial industry at this critical period of our economic life is not an option.

    “The congress in session did not discuss neither did it ratify any industrial action. Therefore, we dissociate NUBIFIE from the planned action of United Labour Congress.

    “The affiliation of NUBIFIE to ULC was done out of the context of the procedure and constitution of our great union and the congress in session resolved and passed a resolution for the return NUBIFIE to its original affiliation, NLC as contained in the union’s constitution.

    “Consequently, NUBIFIE dissociates itself from the called strike of ULC and hereby directs all our members in the banks and insurance companies to shun any other directive contrary to this.”

    But, the Director-General, National Identity Management Commission (NIMC), Mr. Aliyu Aziz, has said the commission had deployed NIMC Verification Service (NVS) to banks and other sectors, including schools and hospitals.

    Aziz, who made this known at the News Agency of Nigeria (NAN) forum in Abuja yesterday, said the financial institutions have successfully implemented and adopted the platform.

    According to him, the Application Programme Interface (API) for the NVS was deployed to institutions for effective use in accessing the data of Nigerians.

    The NIMC boss stressed that it was important to harmonise insurance companies’ databases with the National Identity Database (NIDB).

    Aziz said so far, the commission had registered 21.6 million Nigerians, while hoping to double this number before the end of 2017.

  • Petroleum, bank, electricity workers threaten to ‘cripple’ economy

    TRADE unions under the United Labour Congress of Nigeria (ULC) yesterday issued a “final seven-day strike notice” to the Federal Government for failing to meet its demands.

    It warned Nigerians to stock up on food ahead of the nationwide industrial action, which it said will “cripple” the economy, if its demands are not met.

    ULC said it reached the decision after an emergency joint meeting of its National Action Committee.

    At the meeting were leaders of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the National Union of Electricity Employees (NUEE), National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), among other affiliates.

    ULC’s President Comrade Joe Ajaero, who read a communiqué issued at the end of the meeting, said it gave a 14-day ultimatum to the Federal Government on August 22, which expired on September 8.

    It said the Federal Government responded through the Ministry of Labour but failed to adequately address the critical issues raised.

    ULC said it rejected the Federal Government’s response, hence its decision to issue another seven-day final strike notice, which will expire on September 15.

    “We hope that the Federal Government understands the goodwill contained in this seven days final notice and seizes the opportunity to meet the demands as made on them.

    “In the event of Federal Government’s refusal to accommodate these demands, we shall be compelled to embark on the proposed strike without further warnings.

    “ULC urges all Nigerians to, therefore, take precaution and stock up on basic necessities as the strike will be very effective,” Ajaero said.

    The union, which split from the Nigerian Labour Congress (NLC), said it took the “painful” decision having exhausted all peaceful processes towards an amicable resolution of the dispute”.

    Among ULC’s 11-point demands is that the Federal Government bans the stationing of the soldiers and policemen in its workplaces and factory premises.

    “This will stop employers, who are now colluding with the Army and other security ‘agencies from setting up garrisons in our factories for the purposes of intimidating and harassing workers to deny them their rights and privileges.

     “The Army and the Police should immediately withdraw their garrisons in the different workplaces, where they are currently stationed,” the group said.

    It urged the Federal Ministry of Labour to sets up a task force to carry out factory inspections, as most of the factories were “death traps”.

    It called for a review of the privatisation of the Power Holding Company of Nigeria (PHCN).

    ULC asked the Federal Government to immediately prevail on the Asset Management Corporation of Nigeria and the receiver manager of Delta Steel Company in Ovwian Aladja, who allegedly short-paid workers by 75 per cent, to quickly rectify it and repay the deficit.

    It demanded immediate payment of the arrears of salaries owed Nigerian workers at all levels of government without exception.

    It asked the Federal Government to honour its 2009 agreement with university lecturers under the umbrella of the Academic Staff Union of Universities (ASUU) and to begin negotiations with them on new issues so that universities will re-open.

    ULC said the roads leading to the petroleum refineries and depots nationwide should be repaired to avoid loss of lives and wastage of products and properties.

    It called for the withdrawal of a proposed Bill at the National Assembly seeking to control free speech, which it said was couched as a Bill against Hate Speech, saying its real intention was to protect the ruling elite from being held accountable by the citizenry.

    “The withholding of registration certificate of the ULC should be stopped and the certificate released forthwith so that the nation’s industrial relations clime will be made more inclusive and robust,” ULC demanded.

    It called for the immediate inauguration of a national minimum wage negotiating committee.

  • Corrupt bank executives

    Corrupt bank executives

    •Sagay is right; those who connived with looters should be prosecuted 

    When bank executives commit fraud or betray their privileged positions of trust in other parts of the world, they are treated like any other criminal – prosecuted and convicted – if found guilty. But here in Nigeria, they are hardly prosecuted. At best, they are relieved of their jobs and business continues as usual. Obviously this is not healthy for the banking sector which thrives on trust and integrity.

    It is against this backdrop that we support Prof Itse Sagay’s decision to push for prosecution of bank chief executives who connived with looters. The looting of the country’s treasury on the massive scale that some unscrupulous politicians perpetrated could not have been possible without the collusion of bank executives. “In my own little way, we are going to push for the prosecution of such bank chiefs. They must be prosecuted,” Sagay said in a public lecture in Lagos on “The many afflictions of anti-corruption crusade in Nigeria”, on September 5. The lecture was organised by the Nigerian Society of International Law.

    Nigerians are inundated daily with reports of staggering amounts in local and foreign currencies suspected to be proceeds of crime purportedly belonging to some former public officials. While it is true that not all the stolen money passed through the banking system, as billions have been recovered in homes and other discreet places, we have also seen evidence of some money lodged in banks, or at least passed through the banking system to wherever they are now, at home and abroad. Yet, those who should blow the whistle when such huge funds were being moved looked the other way.

    This is only one of the many infractions in the banking sector. We have had instances of banks charging customers more than required; some chief executives had converted customers’ deposits in their care to personal property while others gave loans without adequate collateral security. The Central Bank of Nigeria (CBN) in August 2009 removed the managing directors and executive directors of five banks due to high level of non-performing loans attributable to poor corporate governance practices, lax credit administration processes and non-adherence to the banks’ credit risk management practices. Two months later, three more bank chief executives were sacked by the apex bank for gross mismanagement of funds. Only one of the banks’ chief executives fired was successfully prosecuted and substantial assets and shares confiscated from her, following the plea bargain she entered into with the Economic and Financial Crimes Commission (EFCC).

    This state of affairs must be a source of concern to PACAC and all well-meaning Nigerians. There is nowhere in the world where chief executives do not tamper with funds in their care. The difference between Nigeria and those other climes is that they promptly prosecute such chief executives. For instance, in the United Kingdom, former Anglo Irish Bank executives John Bowe and Willie McAteer and the former chief executive of Irish Life and Permanent, Denis Casey, were all sentenced to prison terms ranging from two years to three and a half years for a €7.2bn conspiracy to defraud in September 2008. What is pathetic in their case is that they did not gain any direct profit from their crimes. They only conspired to mislead investors about the true financial state of their companies.

    It is doubtful if most of the crimes committed by bank chief executives in Nigeria followed this pattern of not benefiting from the crimes. As a matter of fact, corruption drives most of the unethical conducts in our banks.

    We support Prof Sagay’s idea. It cannot be otherwise if sanity must be restored to our banking system. We also note his apprehensions, especially about a National Assembly that has not passed any of the anti-corruption bills before it, as well as the judiciary that stinks, with some senior advocates colluding with some judges to sell judgments. What the situation calls for is eternal vigilance by Nigerians who should be more inquisitive about what transpires in both the legislative and judicial arms of government.

  • Bank staff arrested over theft of N25m

    Bank staff arrested over theft of N25m

    The Delta State Police Command has arrested four bank officials for their role in an armed robbery operation between Otulu and Ubulu-Okiti axis of the Benin-Onitsha Expressway.

     A policeman was shot dead in the robbery operation. The four suspects work for an old generation commercial bank.

     In a statement made available to The Nation, Delta Police spokesman  DSP Andrew Aniamaka said the four suspects include a female cash management officer of the bank’s Branch 1, Amina Oyewole,Chief Security Officer and two drivers.

    He said the quartet were arrested after a preliminary investigation showed that in their bid to “cut corners” picked seven policemen from different locations and engaged them in an illegal escort to convey N25 million from its branch in Agbor ,Ika South L.G.A to Asaba-the State Capital without using a serviceable armoured vehicle as required by law.

     The statement reads in part, “ The Cash management Officer Branch 1  Asaba, one Amina Oyewole ‘f’, the Chief Security Officer of the bank and two drivers were arrested by Delta State Police Command following an armed robbery attack which occurred Tuesday, September 5, 2017 between Otulu and Ubulu-Okiti, along Asaba/Benin expressway, Delta State.

    “Their arrest followed preliminary investigation into the attack which revealed that, in a bid to cut corners, the bank officials illegally picked seven police officers from different locations, yet to be determined, and engaged them on an illegal escort for the conveyance of the sum of twenty-five million naira from its branch in Agbor to Asaba without using a serviceable, secure armored bullion van as required by law”

    He said a policeman was killed in the attack while the robbers emptied their loot into two getaway cars.

    The statement added ,”one of the police escorts was fatally injured by the armed robbers who also emptied the twenty-five million naira (N25, 000,000.00) into their cars- a Honda Pilot Jeep and Toyota Corolla, Registration numbers unknown,  and escaped”.

     The Command warned that banks requiring police escort must adhere to laid down regulations on specie escort especially during the ”ember” months

  • Four police officers detained for extortion

    Four police officers detained for extortion

    Four police officers attached to Ogudu Divison in Lagos State have been detained following their alleged involvement in extorting money from their victim.

    The officers were alleged to have collected money through transfer after they went through phone and bank details of their victim.

    The Inspector General of Police (IGP), Ibrahim Idris has however ordered a detailed investigation into their case and also ordered their removal from frontline duties.

    The directive is contained in a bulletin released by the Officer in charge of the Public Complaint Rapid Response Unit (PCRRU), ACP Abayomi Shogunle.

    The decision was reached after a social media post went viral about how some police officers were forcefully trying to collect the victim’s phone.

    Narrating what he went through in a report submitted to the Unit, the complainant alleged that two officers; Mathew Olasiji Olaadujoye and Oba Roland stationed along Ogudu road pulled him over and asked for his cell phone.

    His report reads: “I refused to hand it over because I felt it was infringement of my privacy but it was forcefully taken and my messages were viewed along with my account details and other private areas in phone and I was extorted.

    “The excuse for this was because they saw in my google app that I had more than one gmail log in. They tagged me a yahoo boy and I was detained for four hours and my car keys taken from me. I wasn’t released until I transferred to Mathew’s account a total of N15,000”

    On what the police did after the complaint was received, Shogunle said: “The Public Complaint Rapid Response Unit (PCRRU) immediately registered the case and ticket number PCRRU972905 was issued.

    “The author of the post was contacted and a meeting between him and PCRRU investigators took place at the Force Headquarters Annex, Moloney Street, Lagos on Monday 21st August, 2017.

    “The police officers involved; two Inspectors and two Sergeants attached to Ogudu Divison, Lagos state have been identified and removed from duty that involves any form of contact with members of the public pending the conclusion of a detailed investigation.”

    Giving outcome of preliminary investigation conducted, Shogunle said: “PCRRU preliminary investigation shows that the policemen on the 16th of August, 2017 at about 11:00am intercepted the complainant along Ogudu raoad and in the course of their interaction went beyond their mandate by going through the contents of the complainant’s mobile phone.

    “Bank statement of account confirms that the complainant following the orders of one of the officers transferred the sum of N15,000 into the account of a third party”.

    The Inspector-General of Police, IGP Ibrahim Idris however directed the Assistant Inspector-General of Police, Zone 2 Lagos to carry out a detailed investigation into the alleged misconduct and appropriate disciplinary action taken against anyone found to have erred.

  • Dunlop seeks $14.6m from church, bank for ‘trespass’

    TDN Tyre and Rubber Plc. (formerly Dunlop Nigeria Plc.), has asked a Lagos High Court in Ikeja to compel a church and a bank to pay it $14.6 million, as damages for allegedly trespassing its property at Oba Akran Avenue in Ikeja, Lagos.

    The firm is also seeking an order restraining the defendants from further entering, encroaching on, building or developing the property.

    Mr. Dave Ajetunmobi is the second claimant/applicant in the suit before Justice K. O. Dawodu.

    Joined as defendants are the Registered Trustees of the Word of Power Global Ministries International (the Triumphant Christian Centre), Rev. S.O. Olubiyo, Pastors Harriet Olubiyo and Akin Ayanwale, Lagos State Attorney-General and Commissioner for Justice and Lagos Land Use and Allocation Committee.

    The claimants averred in their statement of claim that 12,500 square metres from the the firm’s 20.22 acres at plot 23 Oba Akran Avenue, was forcibly and illegally taken over by the bank.

    They claimed that the bank set the machinery in motion for the alleged forcible acquisition of the property by prematurely calling up a loan facility before subsequently selling the property to the church.

    The firm further averred, in an amended statement of claim, that the bank induced it into the contract in which the purported transfer of property was affected on an “unsubstantiated excuse that it was a directive of the Central Bank of Nigeria.”

    DN Tyre contended that “by a December 18, 2009 deed, the claimant purported to assign to the first defendant (bank), an unidentified (unspecified) portion of the claimant’s land for N625 million.

    But the bank, in its statement of defence, absolved itself of any wrongdoing in the matter.

    It said the claimant voluntarily offered the land to it, to liquidate its indebtedness.

    Similarly, the church contended that at the time it took possession of the property, the claimant had neither legal nor equitable interest to protect any longer in the property, as it had voluntarily transferred it to the bank.

  • TSA: Govt saves N4b bank charges monthly

    TSA: Govt saves N4b bank charges monthly

    The Treasury Single Account (TSA) policy has enabled the Federal Government to save N4billion monthly from charges that banks collected on its numerous accounts, it was learnt at the weekend.

    Besides, more than N7 trillion has been remitted by banks to the government’s TSA account in compliance with the policy.

    The figure,  as at March, showed that the TSA had been able to consolidate all inflows from government agencies using a single account-Consolidated Revenue Account (CRA), at the Central Bank of Nigeria (CBN).

    The TSA is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.

    The implementation of TSA was a nightmare for government until September 2015, when SystemSpecs deployed Remita, locally developed payment software, to drive the policy execution.

    Before TSA, every organisation that collects money payable to the Federal government stacked cash in Deposit Money Banks (DMBs) where they were left to yield interest over the years for faceless individuals and groups while the Federal Government was starved of funds meant for developmental projects.

    The Federal High Court in Lagos two weeks ago, ordered seven commercial lenders to temporarily remit a total of $793.2 million allegedly hidden by them in contravention of the TSA policy.

    Justice Chuka Obiozor ordered the banks to remit the various amounts allegedly being kept illegally in their custody to the designated Federal Government’s asset recovery dollars account domiciled with the apex bank.

    The concerned banks are United Bank for Africa Plc, Diamond Bank Plc, Skye Bank Plc, First Bank Limited, Fidelity Bank Plc, Keystone Bank Limited and Sterling Bank Plc. However, the lenders have all denied keeping such funds, insisting they have remitted the cash to the regulator.

    Head of Treasury at Ecobank Nigeria, Olakunle Ezun, said the TSA has remained a major challenge for most banks, especially smaller lenders.

    He said the TSA has reduced banks’ balance sheet positions and income.

    Ezun said: “TSA remains a minus for banks, and plus for government,” he disclosed.

    He said: “A lot of banks did not honour their obligations, because of liquidity problems. But after a while, some banks met with the CBN and asked to pay gradually. The CBN later gave them forbearance, but increased liquidity in the system, I think they are now expected to remit the cash,” he said.

    Ezun said TSA remains a minus for banks, and plus for government, adding that the affected lenders will have to source the dollar from the parallel market because the law does not allow them to bid at the official market for such funds.

    “A lot of the affected banks will have to source for the funds at the parallel market,  if they do not have the required cash. The banks that were caught in the web were those facing foreign exchange crisis, which made it difficult for them to remit in totality to the CBN,” he said.

    Defending the initiative, Executive Director, SystemSpecs, Adermi Atanda, said the TSA is just a concept, a way and means of banking.

    He said: “So, TSA is just set of arrangements of knowing where your funds are, aggregating them for optimum benefits to the economy. So, that in itself, does not make it threat to banking in any way. It is just that government needs to get more efficient by leveraging on technology, and it goes beyond the banks. It touches how people are able to relate with governments, the ease of payment, delivery of service, accountability of government revenues, taxation and making funds available for national development,” he said.