One of Nigeria’s financial institutions, STERLING BANK PLC, is in the news again for the wrong reasons.

This time, a customer of the Abubakar Suleiman-led Sterling Bank has again lost over N2.4 million to a fraudulent official of the bank.

The staff, one Ebenezer Alonge, a cashier with Sterling Bank’s Ado-Ekiti branch, alongside his wife, Isakunle Oyinlola and his mother-in-law, Isakunle Moradeke, have been arraigned by the Economic and Financial Crimes Commission (EFCC), for allegedly diverting N2.4m deposited by a customer.

One of the Count Charge preferred against reads: That you Ebenezer Adeolu Alonge ‘M’ , Isakunle Olamide Oyinlola ‘F’ and Isakunle Eunice Moradeke ‘F’ between the month of January 2017 and March 2017, at the premises of Sterling Bank PLC Ado-Ekiti branch, did steal the sum of N2,400,800.00 (Two Million, Four Hundred Thousand and Eight Hundred Naira) only property of Sterling Bank, by diverting same to the personal account of Isakunle Olamide Oyinlola with account number, 0047750660 and the personal account of Isakunle Eunice Moradeke with account number 0064222881, all with the Sterling Bank, Ado-Ekiti branch, being money for Ekiti State Primary and Secondary Education Development levy, and thereby committed an offence”.

The defendants, however, pleaded ‘not guilty’ to the charges preferred against them

According to a statement by the EFCC acting spokesman, Tony Orilade in Abuja, it was alleged that sometime in February, Sterling Bank received a complaint bordering on financial impropriety involving N62,400 belonging to a customer.

“The incident was investigated and another sum of N2,400,800 belonging to a customer was found to have been diverted by Alonge to his wife’s account.

“Further investigation revealed that there was a turnover of over N21m deposit from other customers in Alonge’s wife’s account.

“Other sums were reportedly traced to his mother-in-law’s account,” said EFCC.

Justice Ogunmoye, however, granted the defendants bail in the sum of N2m and two sureties in like sum, one of whom must be a government official not below grade level 12, while the other surety must be resident within court’s jurisdiction.

The case was subsequently adjourned to February 5, 2019 for hearing.

A federal high court sitting in Lagos south west Nigeria has adjourned till 10th of December, 2018 for report of settlement or trial if amicable settlement fails, the suit instituted by a

Lagos business man Rev. Chukwuemeka Ngubo and his company Elim Motors Nigeria Limited against Ecobank Nigeria limited for allegedly buying United States Dollar on their behalf at the rate of N475 to one United States Dollar whilst the Central Bank approved rate was at N300 to one United States Dollar as at the time of purchase.

By wrongfully sourcing foreign exchange from the parallel market,the Plaintiffs alleged that Ecobank exposed them to the sum of over N2Billion loss.

By the provision of the Foreign Exchange (monitoring and miscellaneous Provisions )Act, Cap F34,laws of the Federation of Nigeria 2004,Ecobank ought not to have sourced foreign exchange from the parallel market

The plaintiffs further averred that, the action of the bank is in flagrant breach of the Central Bank of Nigeria’s extant rules regulating the conduct of foreign exchange transactions in Nigeria which has adversely affected the credit rating and financial credibility of the company to the benefit of the bank.

According to statement of claim filed before the court ,The Plaintiffs aver that pursuant to the banker-customer relationship between Ecobank Nigeria limited and Elim Motor limited,the bank had, in the past granted Elim Motor limited several credit facilities which the company always repaid as at when due.

The company averred that,it applied for and the bank issued a bank guarantee in the sum of $12million in favour of Credit Trading Company ,through Deutche Bank AG London in the sum of $8,750,000, By the foregoing the plaintiffs aver that, a balance of $3,250,000 was left unutilised.

The loan was secured with the following.
1.lien on cash Collateral of N200 million being held at the bank’s Treasury Department.
2.legal mortgage on blocks of lecture Halls Complex student centre Okota, Isolo Lagos State valued at N383Million.
3.Legal Mortgage on Block of Lecture hall complex at Elim Mordern Student Centre Okota.
4.Stock Hypothecation of one Billion Naira.
5.Persobal guarantee of the Managing Director with a notarised statement of net worth
6.Promisory note of Elim Motors Limited for the payment of all present and future principal and outstanding balances in the account.

Upon the expiration of the tenor of the bank guarantee ,and in honouring the bank guarantee, Ecobank Nigeria limited unilaterally and wrongly sourced the sum of $8,750,000 it paid to Cedric Trading Company LLC from parallel market rather than from Central Bank of Nigeria by purchasing the foreign exchange at the rate of N475 to one US Dollar, whilst the Central Bank of Nigeria’s approved rate was at N300 to one US Dollar as at that time.

By wrongly sourcing foreign exchange from the parallel market, the bank exposed the Plaintiff Company to the sum over N2billion as loss.
By the provision of the foreign Exchange (motoring and Miscellaneous provision) Act, Cap F34,Laws of the Federation of Nigeria 2004,Ecobank ought not to have sourced foreign exchange from the parallel market.

Due to the wrongful actions of the bank,the bank is still demanding for the sum of N4,410,017,358.51 from the plaintiffs as their outstanding indebtedness.
However, the Plaintiffs averred that they are not in any way indebted to Ecobank,consequently urged the court to declare that the unilateral purchase of foreign exchange by Ecobank at the parallel market rate rather than at the Central Bank of Nigeria ‘s inter-bank rate is in breach of the Ecobank’s fiduciariary duties owed the Plaintiffs by Ecobank Nigeria limited.
An order directing Central bank of Nigeria to conduct a detail enquiry into the purchase of foreign exchange by the bank at the parallel market, and if the bank is found to have breached ethical standards in the banking industry, penalized the bank in line with its extant Guidelines and Monetary Policies.

The bank in its statement of defence denied almost all the claims of the plaintiffs instead the bank is contending that the plaintiffs are owing the bank the sum of N4,693,438,781.10 as at 28th of February, 2016.

The bank therefore urged the court to dismiss the claim of the plaintiffs as being frivolous and baseless.

Source: TheNews