The Nation Newspaper

Tag: bank

  • Exposed: $151m, N8b in fictitious bank accounts

    Exposed: $151m, N8b in fictitious bank accounts

    Suspects give up cash to Fed Govt

    Whistle-blowing is yielding bountiful fruits, with the Federal Government recovering about  $136,676,600.51 from a fictitious account. The unnamed owner of the account is suspected to be a public officer.

    The suspect is believed to be a front for laundering slush funds, The Nation learnt yesterday.

    Two others voluntarily refunded $15million, N7billion and N1billion after some whistle-blowers exposed the huge deposits in their accounts.

    The deposits are suspected to be proceeds of crime.

    According to a source, who pleaded not to be named, the recovery followed information given to the Office of the Attorney-General of the Federation( OAGF).

    The source said: “The government’s policy on whistle-blowing has recorded some achievements. For instance, the Office of the Attorney-General of the Federation was alerted to about $136,676,600.51in a fictitious account in a bank. When the government moved in, the bearer of the fake account could not explain the source of the cash.

    “We are suspecting that the purported owner is a public officer who might have either been part of a syndicate or serving as a front to launder funds.

    “But the office of the AGF has all the details of those involved in keeping these suspicious funds.

    “There was the case of another person who had $15million and N7billion in his account. These funds were suspected to be proceeds of crime. Again, some whistle-blowers who knew about these  huge deposits alerted the government.

    “The third person could not explain how he came about N1billion.

    “Interestingly, all the suspects willingly gave up these slush funds.”

    Asked of what will become of the three suspects, the source added: “Only the AGF can clarify the next step in line with the law and the policy on whistle-blowing.”

    A statement by the Minister of Information and Culture, Alhaji Lai Mohammed, said the “whistle-blower policy has started yielding fruit as it has so far led to the recovery of US$151 million and N8billion in looted funds”.

    The minister said: “The looted funds, which do not include the $9.2 million in cash allegedly owned by a former Group Managing Director of the NNPC (which was also a dividend of the whistle-blower policy), were recovered from just three sources through whistle-blowers who gave actionable information to the office of the Minister of Justice and Attorney-General of the Federation.

    “The biggest amount of $136,676,600.51 was recovered from an account in a commercial bank, where the money was kept under an apparently fake account name, followed by N7billion  and $15million from another person and  N1billion  from yet another.

    ‘’When we told Nigerians that there was a primitive and mindless looting of the national treasury under the last Administration, some people called us liars.

    “Well, the whistle-blower policy is barely two months old and Nigerians have started feeling its impact, seeing how a few people squirreled away public funds.

    “It is doubtful if any economy in the world will not feel the impact of such mind-boggling looting of the treasury as was experienced in Nigeria.

    ‘’Yet whatever has been recovered so far, including the $9.8million by the EFCC, is just a tip of the iceberg.”

    Mohammed urged Nigerians with information on looted funds to continue to provide the authorities with such information.

    He said  confidentiality will be maintained with regards to the source of the information.

    The minister also reminded Nigerians of the financial reward aspect of the policy.

    ‘’If there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided, the whistle blower may be entitled to anywhere between 2.5% (Minimum) and 5.0% (Maximum) of the total amount recovered,’’ Mohammed said.

  • Man held for ‘robbing’ bank customer

    Man held for ‘robbing’ bank customer

    Policemen attached to Victoria Island Division have arrested a 23-year-old man, George Onuh, for allegedly robbing a bank customer.

    Onuh was said to be with another person who fled with the motorcycle they used for the operation. They allegedly ambushed one Bola and dispossessed her of an undisclosed amount of money she withdrew from a Guarantee Trust Bank (GTB) branch.

    It was gathered that the victim’s alarm attracted some patrolling policemen who apprehended the suspect around the Nigeria Law School and recovered the cash.

    According to a posting on Facebook, the victim, said she sighted the suspect inside the banking hall while she was making withdrawals, adding that she thought he was also a customer.

    She said she was surprised when waylaid her and ordered her to handover her money at gun point.

    Police spokesperson, Dolapo Badmos, a Superintendent (SP), said the victim has been given back her money. The suspect, the locally made pistol and six rounds of ammunition recovered from him have been moved to the Special Anti-Robbery Squad (SARS), Ikeja.

  • How bank gave Justice Ofili-Ajumogobia waivers on account opening

    How bank gave Justice Ofili-Ajumogobia waivers on account opening

    AN Ikeja High Court heard yesterday that none of the persons listed as directors in the corporate account opened by Justice Rita Ofili-Ajumogobia at Diamond Bank visited its branch as at when the account was opened.
    A worker of the bank, Ademola Oshodi, said this yesterday to the court at the resumed trial of Justice Ofili-Ajumogobia and Chief Godwin Obla before Justice Hakeem Oshodi.
    Led in evidence by Rotimi Oyedepo, counsel to Economic and Financial Service Commission (EFCC), Adebayo, who was giving evidence on waivers given to the judge by the bank, said he did not meet any of the firm’s directors as at the time he was opening the account contrary to usual practice.
    He told the court that the company , Nigel and Colive, is into general business and is located at No. 18, Lai Ajayi Bembe Road, Parkview Estate, Ikoyi, Lagos.
    He reiterated that when officials from the bank inspected the business premises, it was still under construction.
    He said contrary to stipulated requirements, the fact that the business premises given by the judge was uncompleted was overlooked by the bank officials because the judge was considered a good customer.
    Justice Ofili-Ajumogobia and Obla are jointly being charged by the EFCC for allegedly perverting the course of justice.
    Mrs. Ofili-Ajumogobia is facing a 26-count bordering on unlawful enrichment, taking property by a public officer, corruption by a public officer, forgery and giving false information to an official of the EFCC.
    Obla, on the other hand, is facing a two-count bordering for allegedly offering gratification of N5 million to Mrs. Ofili-Ajumogobia.
    The anti-graft agency alleged that Mrs. Ofili-Ajumogobia, while serving as a justice of the Federal High Court, Lagos, unjustly enriched herself by illegally receiving $793,800 from various sources between 2012 and 2015 in three Diamond Bank accounts.
    The witness told the court that he filled the account opening forms himself, but that they were executed and signed by Justice Ofili-Ajumogobia.
    He said Justice Ofili-Ajumogobia is the signatory to the account Nigel and Colive, which is a corporate account.
    The witness told the court how cash deposits ranging from N900,000 to N8.8 million were made by him on behalf of the judge into her corporate account with the bank.
    He said the money were either picked up from either her office, her home or from her Bureau De Change operative and that he made the deposits himself on her behalf.
    Counsel to Mrs. Ofili-Ajumogobia, Omotola Akonni (SAN) requested for permission to cross-examine Oshodi at the next date of adjournment.
    “I hereby request for time to cross-examine the witness at the next adjourned date. I just came in from a proceeding at the Federal High Court and I need time to settle and prepare adequately,” he said.
    Justice Hakeem Oshodi granted the request of the senior lawyer and adjourned to March 10 for cross-examination of the witness and March 17 for continuation of trial.”
    Counsel to Obla, Mr. I.A. Adedipe, in his submission, requested that the international passport of his client earlier handed over to the court as part of his bail conditions should be released to enable him travel abroad.
    In his ruling, Justice Oshodi  granted Adedipe’s request for the release of his passport.
    “The Chief Registrar shall release the passport of the second defendant to travel overseas from February 5 to March 5 and return his passport to the Chief Registrar on or before March 6,” he ordered.

  • ‘Bank, finance, insurance workers still part of NLC’

    ‘Bank, finance, insurance workers still part of NLC’

    The National Union of Banks, Insurance and Financial Institution Employees (NUBIFIE) is still an affiliate of the Nigeria Labour Congress (NLC) as provided for and ratified in its constitution, it was learnt yesterday.
    The National Administrative Council (NAC) of NUBIFIE, in a statement by its Acting General Secretary, Comrade Odiaka Nwanji, said it has not formed a new union.
    Nwanji said it was not among the affiliate unions that formed the new labour movement named United Labour Congress (ULC).
    According to him, any amendment to NUBIFIE’s con e approval and documentation with the Registrar of Trade Unions.
    He said: “This is the case with the current constitution which was amended at the National Delegates’ Conference in September 2006 at Oshogbo, Osun State and approved and documented by the Registrar of Trade Unions.
    “We wish to use this opportunity to state that our Union (NUBIFIE) has not held any National Delegates’ Conference since 2011 when the last one was held and so no amendment of our Union’s Constitution has taken place.”
    Nwanji said the claim that NUBIFIE was an affiliate of ULC was “a fraud and an exercise in futility,” adding that “NUBIFIE will continue to remain an affiliate of the NLC under the leadership of Comrade (Dr.) Ayuba Waba.”
    Nwanji described reports that NUBIFIE had joined ULC as “a fabrication of falsehood by mischief makers to cause disaffection between our Union and the NLC.”
    He urged the NLC and security agencies to arrest and prosecute those behind that false claim.

  • Bank workers clean Erekesan market

    Bank workers clean Erekesan market

    Workers of Sterling Bank temporarily abandoned their official duties to carry out community service by cleaning up the Ado-Ekiti Main Market, otherwise known as the Erekesan.

    Armed with shovels, rakes, brooms and other equipment, the bankers stormed the Post Office Roundabout at 6:30 a.m. and cleared heaps of garbage and cleaned the drainages in the vicinity.

    The gesture was part of the firm’s Corporate Social Responsibility (CSR) to the people of its area of operations.

    The effort also was aimed at raising the aesthetic value of Ado-Ekiti, prevent breakout of epidemic diseases and improve the city’s cleanliness.

    Speaking during the exercise which lasted for three hours, the bank’s Regional Manager (South West), Mr Abiodun Tomomero, said the programme was also an avenue through which they identified with the people of the city.

    Tomomero, who said the exercise was taking place in 14 states of the federation, added that  the bank would also intervene in other critical sectors such as education and  tourism to boost the state’s human capital development as well as shore up the  resources accruing to it.

    He said the bank had demonstrated  its corporate obligation to the state by building a modern e-library at the College of Education, Ikere-Ekiti, saying the facility is now used by members of staff  of the college and workers of the state civil service.

    “We have discussed with the state waste management agency on those areas that are strategic and prone to dirtiness and we discovered that Oja Oba Market is the right place.

    “Cleanliness, they say, is next to Godliness. We have to make our environment clean. We should not rely on government alone to do everything, because this may bring about breakout of diseases. We are operating in Ekiti and this constitutes part of our noble contributions to this state,” he said.

    Another top executive of the bank, Mr Olatunji Adeyemi, revealed that  members of staff of the bank are participating in the exercise, adding that the programme will create awareness among the people on the need to accord the issue of sanitation a priority.

    The General Manager, Ekiti State Waste Management Agency, Mr Olajide Borode, said every area suspected to be prone to breakout of epidemic diseases within the state capital were being fumigated at regular intervals by the agency.

    Borode appealed to the people to stop sabotaging government’s efforts at making Ekiti clean by refraining from indiscriminate garbage disposal and deposition of sewage inside canals and ditches.

  • SMEDAN calls for establishment of SME bank

    SMEDAN calls for establishment of SME bank

    The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has emphasised its call for the establishment of Small and Medium enterprise (SME) Bank. The said bank would be used to access funds without the bottlenecks associated with loans from other banks. This, according to the agency, would pave the way for creation of millions of job.

    Addressing the media in Lagos, SMEDAN’s Director-General/Chief Executive Officer, Dr. Dikko Umaru Radda, said the major challenge inhibiting the development of SMEs in Nigeria remained non-accessibility of funds by the entrepreneurs, which has to be addressed by establishing a bank for the sub-sector.

    Radda, who opposed the proposed scrapping of Bank of Industry(BOI) by the Federal Government, maintained that more of such retail banks should be established along a designated bank for the SME sub-sector.

    According to him, the small and medium scale businesses would be more at home with SME banks than any other.

    As an agency saddled with the responsibility of catering for the SME in Nigeria, SMEDAN boss said the agency would establish an SME micro-finance bank to kick-start the process of creating SME bank.

    Radda, however, lamented that the agency was confronted by many challenges limiting its capability, among which included the Act of National Assembly that established the agency in 2003 to which the agency has been seeking amendment.

    He said  if the Act was amended by the National Assembly, the agency would be more empowered to develop the SME sub-sector to the higher level, adding that the agency would be able to formalise the SMEs, as many of them remained informal by creating platform through which they could easily register their businesses and have easy access to fund at the proposed SME bank.

    Radda, who noted that the agency was underfunded, said the agency would liaise with the government to allow it have 30 per cent of the tax on the luxury products imported into the country, emphasising that such luxury goods should be taxed more if imported into the country.

    He maintained that the revenue from such tax would be used to fund SMEs as it is done in other countries.

    He also appealed for the provision of enabling environment for the SMEs to thrive, while charging the Federal Government to promulgate competition law, which would regulate monopoly and other factors affecting the economic growth in the country.

    Meanwhile, Radda said there was the need for the government to ensure synergy among all agencies, ministries and departments that are saddled with similar but complementary responsibilities rather than promoting unnecessary rivalry.

    “We see one another as competitors rather than collaborators. We have forgotten that we are all working for the government and for the well-being of the citizens.

    “SON and NAFDAC should not see each other as competitors, while SMEDAN and ITF should accept that they are complementing each other’s effort to growing the economy,” he said.

    He, therefore, promised that the agency would put in all efforts to ensure that the SME sub-sector is used as a driver to take the nation out of economic recession, adding that it has been collaborating with other agencies and organisations on vocational and entrepreneurial training, capacity building and financial sourcing.

  • Ibadan private school settles N90m loan suit with bank

    An Ibadan private preparatory institution, Sunshine De Gold Nursery and Primary School, yesterday opted for an out-of-court settlement in a N90 million loan suit with Diamond Bank PLC.
    The school conveyed its decision to settle through its lawyer, Akeem Agbaje, at the resumed hearing in an Oyo State High Court, Ibadan.
    The school sued the bank to prevent closure of the mortgage of a property used as collateral for the loan in 2013 due to failure on repayment.
    But yesterday, Agbaje notified the court his clients agreed to settle out-of-court with the bank.
    As a mark of assurance, the counsel presented a cheque of N10 million, which will be deducted from the total sum as may be agreed by the parties.
    Agbaje declined comments when approached by reporters. He said it was unnecessary because his client had opted for amicable resolution.
    The loan was secured in 2012 to expand the school. Its proprietor, Mrs Taiwo Arowobusoye, and the school board endorsed the loan, according to the bank’s lawyer, Ayo Faleti.
    Faleti did not oppose the request for amicable settlement.
    Addressing reporters, Faleti said: “They claimed against the bank. They brought us to court and we filed a counter-claim against them but unfortunately they are yet to file any defence to our counter-claim.
    “We filed our counter-claim way in 2013 and till now they have not filed any defence and there is no application before the court to extend the period in which they can file defence.
    “What we wanted in the court today was for them to come and provide their claim against us and for us to prove our counter-claim against them but unfortunately they came and talked to the court, begged the court to give them time to go and talk to the bank, that they preferred that the matter be settled amicably.
    “And in respect of that they have issued a cheque of N10 million today, which will be deducted from whatever the bank will accept from them in full and final.”
    He said the school promised to send another cheque of N10 million yesterday.
    The case was adjourned till February 17 for settlement or definite hearing.

  • We’re not distressed, says bank

    We’re not distressed, says bank

    HERITAGE Bank Plc has urged its depositors to disregard reports that it is in distress.
    A statement by the bank yesterday lamented that “unrelenting persons keen on dragging the name of the bank in the mud have once again began spreading absolutely false reports about the bank in the social media.”
    One of such reports Heritage bank said was published on a social media platform on Friday, which falsely and maliciously claimed that “anxious customers jammed the phone lines and websites of Heritage Bank PLC and crowded most of its branch offices to pull out their savings because of concerns about fresh financial problems of the bank.”
    This report, the bank, said: “is not just false, it was clearly sponsored with the intent to sully and de-market Heritage Bank.”
    The bank assured its depositors that they have no cause whatsoever to be anxious about his or her deposit.
    Heritage Bank claims it “is doing exceedingly well and continues to discharge its responsibilities with precision and utmost professionalism to depositors, investors and all other critical shareholders.”

  • Police stops lynching of Bank MD by customers

    The timely intervention of the police in Enugu prevented the lynching of Mr Kingsley Ubenyi, the Managing Director of Kesley Mega Micro-Finance Bank, by the bank’s aggrieved customers on Friday.

    The spokesman of the Police Command in Enugu, Mr Ebere Amaraizu, told the News Agency of Nigeria (NAN) that the rescue of the bank boss came as a result of prompt intervention of a police patrol team after a security tip-off by some members of the public.

    Amaraizu said the incident happened at about 5 p.m. on Wednesday at the De-Dome Event Centre in New Haven, Enugu.

    He said reports reaching the police indicated that hundreds of aggrieved customers of the bank were seen striking the managing director, who was forced to sit in his vehicle, which was later damaged by the irate crowd.

    “The aggrieved customers maintained that they are customers of the micro-finance bank and that despite repeated efforts to withdraw their money in their savings accounts with the bank, no light was seen at the end of the tunnel.

    “Not long after, a meeting between the customers and the managing director was convened at De Dome event centre, New Haven, Enugu, where the bank boss tried to explain the difficulties faced by his bank over the payment of customers’ money.

    “This (the explanation) did not go down well with the aggrieved customers, who got violent and descended heavily on him before the intervention of the police operatives,’’ he said.

    Amaraizu, however, said the aggrieved customers were advised to be law-abiding and to seek redress by taking the lawful step to access their monies.

    “The managing director is currently receiving treatment at a nearby hospital,’’ he said at the time of writing this report. (NAN)

  • CBN to blacklist fraudulent bank customers

    CBN to blacklist fraudulent bank customers

    The Central Bank of Nigeria (CBN) is working on a framework that will, before year-end, enable it to blacklist or watch-list fraudulent bank customers across the country’s banking space.

    CBN Director, Banking and Payment ’Dipo Fatokun broke the news at the Nigeria Electronic Fraud Forum (NeFF) October meeting in Lagos at the weekend.

    He said the framework, when unveiled, would give the regulator the legal backing to use the Bank Verification (BVN) platform to identify, watch-list and blacklist fraudulent account holders in all the 22 banks and Other Financial Institutions (OFIS).

    According to him, the framework, which is at the final stage of its approval, would soon be sent to the Committee of Governors of the Central Bank for examination and exposure to the banking industry.

    “It is a policy issue and therefore, has to go to the Committee of Governors of the Central Bank, which will look at it and do an industry exposure. These will be completed, hopefully, before the end of the year,” he assured.

    Data from the CBN showed that although e-fraud rate in terms of value dropped by 63 per cent last year, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 per cent within the year compared to 2014 figures.

    Also, the country experienced a total of 3,500 cyber-attacks with 70 per cent success rate and loss of $450 million within the last one year mainly through cross channel fraud, data theft, e-mail spooling, phishing, shoulder surfing and underground websites.

    Fatokun explained that one common thing about electronic fraud was that when money is moved fraudulently from one account to another, it could easily be traced.

    “And so, identifying the owner of that fraudulent bank account using the BVN, will not only be able to identify him or her in the bank he has moved the money to, we also identify him in all the banks where he has accounts.

    “And when legal impediments are overcome, such people could be blacklisted, or watch-listed in the banking system. That will also assist us to a great deal, in curbing the menace of fraudsters,” he said.

    The CBN director, who spoke on the theme: “Exploring new protective measures against social engineering vulnerabilities”, said social engineering has common phenomenon in cybercrime attacks in Nigeria.

    “Almost on a daily basis, a plethora of messages are sent by these criminals with the express intent to con the unsuspecting recipient using techniques that appeal to vanity, greed or authority. It is, therefore, important that we look critically at measures that will protect the industry as a whole from the menace of social engineering attacks.

    “It is often said that people, processes and technology are the tripod on which cybersecurity lies, with discussion ever hovering on which is the weakest link. I must however submit that like what is required in building any chain, we must prepare to forge each link with the same degree of heat – in other words, no link must be too important or less significant in the pursuit of payments security.”

    On the implications of such blacklisting on customers, he explained that for commercial banks, opening an account or having a bank account itself is a contract.

    “It is a contract between a willing customer and a willing bank. So, if a bank notices that a particular customer is fraudulent, or is a criminal, the bank has the right to get out of the contract. And another implication is that if an account is watch-listed, when the framework is finally approved, if there is a credit into that account and every other person is having his credit within two to three minutes, because the account has been watch-listed based on past activities, credit into such account may be withheld for a longer period while investigations are carried on to actually confirm that it is a genuine transfer,” he stated.

    These steps, Fatokun said, would assist the bank, because being able to identify, apprehend and prosecute would go a long way in reducing the problem of electronic fraud.

    On prosecution and apprehension, he said the NeFF is working with the police to create a dedicated electronic payment and card crime unit, which when operational, would help reduce further, electronic fraud.

    He said the operationalisation of a dedicated e-Payment and Card Crime Unit in the Nigeria Police will enable a greater effort in NeFF’s quest to successfully investigate and bring to book through effective and efficient prosecution of cyber-criminals.