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Stakeholders, Depositors panic as Wema Bank lost over N1 billion to fraudsters

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Critical stakeholders and Depositors of the Moruf Oseni-led Wema Bank Plc are worried about the safety of their funds and the health of the lender over the high level of fraud cases the bank recorded in the year 2023.

 

In its full-year 2023 financial statement released recently, Wema Bank disclosed that it recorded fraud in its system to the tune of N1.136 billion.

 

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This has become worrisome to financial analysts and further shows that the bank’s security system may be either weak, poor, not up to industry standards or operated by unqualified personnel.

Assuredly, this development does not only affect depositors and create panic in the minds of customers of the bank, it also has ripple effects on the dividend payout to its shareholders.

 

In the audited 2023 financial statement, the bank recorded 1,195 fraud cases to the tune of a whopping N1.136 billion, out of which N685.595 million was lost.

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The bank claimed 97 per cent of the fraud cases were executed by outsiders, adding that the cases valued at N860.395 million occurred through operations and others and N595.017 million was lost in the process.

 

Internet fraud was worth N203.724 million and N90.017 million was ferried away by fraudsters.

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Fraudsters also attempted to steal N36.071 million via point-of-sale channels and N8.148 million through mobile banking but only succeeded in carting away N506, 000.

 

Scammers also attempted to steal N869,000 via automated teller machines and N27.39 million web frauds, but they were foiled.

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“There is no fraud, whether or not material, that involves management or other employees who have a significant role in the bank’s internal control system,” the management of the bank stated.

A financial analyst, Bolu Oyedeji who spoke with THE WITNESS in a report noted that the bank’s high fraud cases in 2023 leave much to be desired and exposed how vulnerable its system is. Oyedeji noted that the bank management must wake up and brace up its system, otherwise it will continue to lose investors’ confidence.

 

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“Wema Bank needs to do something urgently to forestall this magnitude of fraud and assure its depositors that their funds are safe.

“The bank must adopt sophisticated cybersecurity measures to mitigate current cyber threats, engage professionals and educate customers on ways to avoid falling prey to fraudulent actors,” he noted.

Similarly, in the 2023 financial year, Wema Bank also incurred sanctions, paying penalties totalling N61.350 million, for contravention of cyber security framework law, a section of bank and other financial institutions Act BOFIA, 2020, late rendition of returns; circulars on the CBN know your Customers among others.

On the cyber security framework, the apex bank asked the Wema Bank to pay N2 million while a total of N17.450 million and N20.00 million were paid for contravention of the CBN circular on KYC and section 19 (3A) of the BOFIA 2020 respectively.

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Wema Bank was made to pay a sum of N10 million, N8 million and N2 million for the late rendition of the returns, breaches of Risk-Based Supervision (RBS) and regulatory breaches on CBN clearance respectively.

The bank also paid N1.9 million for late filing of 2022 audited financial statements with the Nigerian Exchange.

However, despite the fraud and security challenges, NewsOnline Nigeria reports that the bank during this period grew its revenue by 70.54 per cent to N226.91 billion on the back of interest income that went up by 71.83 per cent to N185.64 billion and fees and communications revenue that improved by 50.50 per cent to N24.96 billion.

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The lender’s pre-tax profit rose by 195.6 per cent to N43.59 billion and post-tax profit leapt by 220.42 per cent to N35.93 billion from N11.21 billion it recorded in 2022.

The bank also grew its total deposits by 59.6 per cent to N1,860.57 billion from N 1.17 trillion in the prior year, while loans to customers went up by 53.6 per cent to N801.10 billion in 2023.

However, its net trading income dipped by 79.45 per cent to N822.49 million from N4 billion in 2022, underpinned by the N1.15bn Treasury Bill loss it suffered in 2023.

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Total Blackout Looms As Vandals, Again, Attack Transmission Line – TCN

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By Kayode Sanni-Arewa

The Transmission Company of Nigeria (TCN) on Thursday said its tower T195 along the Ugwuaji–Makurdi 330 kV transmission line was vandalised on Saturday.

TCN’s General Manager, Public Affairs, Mrs Ndidi Mbah, in a statement in Abuja, said that the vandalism took place at Watuolo village, Utonkon, in Ado Local Government Area of Benue.

Mbah, however, said that the vandalism was thwarted by the vigilance of the community members, who at about 3 a.m. noticed suspicious activity around the tower.

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She said that the community members promptly apprehended one of the suspected vandals while the others escaped and handed him over to the police.

”TCN commends the people of Watuolo village for their swift action and vigilance.

”We equally appeal to communities hosting critical infrastructure to emulate this example and take ownership of protecting transmission installations in their vicinity.

As we continue to work with security operatives and host communities against vandalism, we appeal for more vigilance by the residents in the communities, who we believe are very critical in this fight,” she said.

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(NAN)

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Lovers jailed 3 months for adultery in FCT

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A Gwagwalada Magistrates’ Court, Abuja on Thursday sentenced two lovers, Mohammed Nazifi, 30, and Bilkisu Ibrahim, 25, to three months imprisonment each for adultery.

The police charged the lovers with a one-count charge of adultery by man and woman, to which they pleaded guilty.

Nazifi pleaded with the court to temper justice with mercy, saying he was a married man with little children to take care of.

Ibrahim also begged the court for mercy, saying she had a 3-year-old child and an aged mother, who depended on her.

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The Magistrate, Olatunji Oladunmoye, had previously remanded the convicts in order for them to provide a witness that would vouch for their conduct of good character.

He finally sentenced them when they could not provide any.

Oladunmoye sentenced the lovers to 3 months imprisonment each with an option of N25,000 fine each.

The magistrate said the essence of the punishment was not to ruin or destroy the convicts but to reform them.

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He added that it would also serve as a deterrent to anyone who wanted to toe the same path.

Earlier, the prosecutor, Dabo Yakubu, told the court that the complainant, Mr Dayabe Abdullahi of Chibiri village, Kuje, Abuja, reported the matter at the Area Command, Gwagwalada, Abuja on Jan. 16.

Yakubu said that the convicts conspired and had sexual intercourse, and both confessed to the crime in their statements.

He said that the offence contravened the provisions of sections 387 and 388 of the Penal Code.

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According to him, sections 387 and 388 refer to a man or a woman subject to customary law where extra-marital sexual intercourse is recognised as a criminal offence.

“If the man or woman has sexual intercourse with anyone other than his spouse, he/she is guilty of adultery and shall be punished with imprisonment for a term. The term may extend to two years or with fine or with both,” he said.

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Billionaire kidnapper, Evans Re-Arraigned, Begs For Plea Bargain, clemency

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Billionnaire kidnapper Chukwudumeme Onwamadike a.k.a Evans, on Thursday urged the Lagos High Court Ikeja, to consider his application for plea bargain, forgiveness and clemency.

He spoke through his new lawyer, Chief Emefo Otudo, immediately after he was re-arraigned over a five-count charge of alleged murder and kidnapping, by the Lagos State Government.

In the charge filed before Justice Adenike Coker, Evans and one Joseph Nkenna Emeka pleaded not guilty to alleged kidnapping and murder.

According to Evans lawyer, Chief Etudo, the substance of Evans’ application for plea bargain, is with respect to three pending criminal cases on compassionate grounds.

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He has earlier been convicted in two other cases with 14 years imprisonment and life jail respectively.

His lawyer told Justice Coker that have been converted to a reasonable human being and being a criminal to a teacher charged entirely Evans name should be graciously dropped from the three pending charges.

He submitted: “That a fresh charge be discretionally filed against the first defendant upon which he will plead guilty and serve 14 years imprisonment If approved.

“That the 14 years imprisonment that may be imposed in the new charge be made to run concurrently with other sentences that might have been given in his other cases listed above.

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“Our authority for bringing this application is attached as Appendix 6 and this application supersedes and overrides any previous application made by or on behalf of Mr Onwuamadike for plea bargain.

Speaking further Cheif Otudo told the court that there are five criminal cases against Evans and Lagos state has been prosecuting him for those cases and have gained conviction in two.

He said during the cause of the prosecution Evans has been incarcerated for about eight years.

“While in prison, the Federal Government offered the first defendant and other inmates a second chance and offered them opportunity to to go to school.

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“The first defendant (Evans) accepted offer to be educated as they were given scholarship by Federal Government. He has now earned an NCE teaching certificate in Economics.

“He is now a teacher and no longer a criminal. Copy of his NCE certificate and the project he did are attached as appendix 1 & 2.

“Mr Chukwudumeme Onwuamadike was also given admission in the National Open University of Nigeria under the scholarship granted by the Federal Government.

“He is now in 200 level in National Open University of Nigeria offering political Science. Copy of his admission letter is attached as appendix 3. And copy of his ID Card in National Open University of Nigeria is attached as appendix
4.

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“Mr Onwuamadike has also learnt technology under the Federal Ministry of Labour and Productivity; to wit, welding and metal fabrication and passed all tests. Copy of the test by Ministry of Labour and Productivity is attached as appendix 5.

Justice Coker told both the Prosecuting lawyer, Mr A. Y. Sule and Chief Otudo representing both parties to wait till March 20, when decision of the committee set up by the Lagos State government on Evans’ application would have been released.

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