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Sterling Bank Embroiled in Money Laundering Scandal

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By Gloria Ikibah
The Nigeria police has formally accused Sterling Bank of alleged money laundering, fraudulent deductions and other financial crimes by its staff.
This was the report presented by Nigeria Police Force to the House of Representative Committee on Public Petition during the hearing of a petition by MidenĀ  Systems Ltd against Sterling Bank, Central Bank of Nigeria (CBN) and Shell Petroleum on Tuesday in Abuja.
Naijablitznews.com reports that Miden System Ltd., had witten a petitioned to the Committee on the alleged mismanagement, fraudulent debit, and misappropriation of funds from its account domiciled with Sterling bank.
Presenting the report before the committee, representative of the Inspector General of Police, Kabiru Yahaya and Sunny Amison, both Chief Superintendent of Police said after intensive investigation and arrest made on the matter, the bank was found wanting.
According to the police, after arrest was made and an extensive investigation carried out, the bank could not provide evidence to counter the allegations made against it by MidenĀ  System Ltd.
He said: “We were saddled with the responsibility to investigate mismanagement, fraudulent debit, and misappropriation of funds from the account of MidenĀ  Systems Limited by Sterling Bank.
ā€œIn the course of our investigation, findings emerged about the issue of non-issuance of statement of account, fraudulent debit, and misappropriation of funds. More importantly, MidenĀ  Systems Limited raised the issue of accounts. There are four accounts operated by Sterling Bank Plc for MidenĀ  Systems Limited. Two are U.S. dollar accounts, while two are Nigeria NGN accounts.
“Major remittance is coming to the account of MidenĀ  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 up 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 MidenĀ  Systems that it was denied the statement of account, 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, he said electronically, or by short message service, But there is no proof. Thereā€™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, or its counsel, or any third party. These are accounts and statements of account 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 there are questions to be raised.ā€
CSP Amison explained, “we discovered a Debt Service Repayment Account (DSRA) where money is being used to service the loan.
“The loan offer as of 2012 was $30 million. We need to understand it was restructured in 2017, with capital and interest to arrive at US$30 million.
“Having regard to the account, we, a team of detectives, started seeing debits, debits from MidenĀ  System account for loan repayment. And we took it upon ourselves to ask the account officer that first came before us to explain the loan repayment but he said it was a mere narration adopted while applying funds to the company’s loan account. We found this very vague and ambiguous.
“We discovered that about US$28.3 million was debited from this company’s account for loan repayment but thereā€™s no explanation.
“Particularly, on the 29th, September 2016, the sum of US$2,413,000 was debited from the company’s account. Account number 00148517716 for loan repayment with reference FT16271UZYO. On 14th, November 2016, the sum of US$1.256 million was equally debited from this same account for loan repayment.
“While on the 16th of January 2017, the sum of US$28,302,140.59 was debited from the company’s account for loan repayment. And like I said, we’ve waited for the bank to provide account officers who have managed this account to throw more light on this. It is not our document.
“It is their own document. The facts are before them. If somebody has managed that account before and is no longer an account officer, they could call them, provide names since they are no longer in the bank.
“One of the account officers specifically wrote that the outstanding balance was about US$27.25 million, while the executive director gave us a figure of over US$30 million. That is to say, nothing has been paid, nothing has been debited to clear the loan.
“We equally discovered what the bank captured in the statement of account, in-branch transfer, account to account. And we asked, what does the bank or the account officers mean by in-branch transfer, account to account?
“We have come up with the recommendation that, since the bank has failed to provide evidence for itself to debunk the allegation raised by Miden Systems , evidence as used so far from their own statement of account corroborates the offences alleged. Financial mismanagement, Fraudulent debit, misappropriation of funds and more importantly, when funds are being moved that way, if you go deeper, money laundering. We could not even go deeply towards the petitioner raising their petition”, he stated.
In response, the Committee Chairman, Rep. Mike Etaba assured both parties that the report will be studied by the Commitee and justice served.
“At the committee level, we will look at the Police report and I assure us that justice will prevail,ā€ Etaba assured.

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Proposal for creation of 31 states demands critical examination, outright condemnation -DG, CCLCA, Dr Nwambu

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…says zoning arrangements clearly favoured a section of Nigeria

By Emmanuel Agaji

The Director General of Centre for Credible Leadership and Citizens Awareness, CCLCA Dr Gabriel Nwambu has called for critical examination and outright condemnation of the move to create 31 additional states in Nigeria.

Dr Nwambu disclosed on Friday in a position paper entitled: ‘Position Paper: Condemnation of the Proposal for New State Creation in Nigeria’ declaring that:

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“The recent proposals for the creation of 31 new states by the House of Representatives Committee warrant critical examination and, ultimately, outright condemnation.

“As Nigeria navigates through significant economic challenges, it is essential we approach governance reforms with an understanding of current realities.

“It is clear that the creation of additional states is not a viable solution to our nation’s pressing issues and, in fact, could exacerbate the situations we are working hard to overcome.

Current Viability of Existing States

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“As it stands, Nigeria is currently composed of 36 states, including the Federal Capital Territory. A disconcerting number of these states are not financially viable. Many states are unable to meet basic obligations, such as paying the minimum wage of ā‚¦70,000.

He explained that: “The crux of the matter is that some states have reached a point of insolvency, making the idea of creating new statesā€”a process that demands additional financial resourcesā€”even more untenable.

” Rather than resolving existing state-level inefficiencies, the introduction of new states would only compound financial burdens on an already strained federation.

Zoning and Geopolitical Implications

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“The proposed new states raise critical concerns regarding zoning and geopolitical distribution, particularly highlighting an imbalance favoring northern regions.

“The potential increase in Local Government Areas in the North signifies not just a concentration of political resources but also increased financial allocations to that region. This further marginalizes regions like the South East, where the new proposals result in fewer states. Such an approach fails to foster national cohesion and equity among the disparate regions of Nigeria, risking further discord rather than unity.

Cost of Governance Concerns

“The timing of these proposals is troubling, especially as we engage in discussions aimed at reducing the cost of governance in Nigeria.

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” The addition of 31 new states would inherently lead to an increase in legislative assemblies, senators, and representatives, thereby inflating the political structure rather than streamlining it. Rather than focusing on mechanisms to enhance governance efficiency, we would instead be entrenching a model that is financially unsustainable.

Imminent National Challenges

“Moreover, the pressing issues that Nigeria facesā€”ranging from rampant insecurity, widespread unemployment, inadequate healthcare, and dwindling infrastructureā€”demand our immediate attention and resources. At this pivotal moment, the creation of new states distracts from tackling these fundamental concerns.

” It is crucial to consider how we can strengthen existing governance structures, enhance service delivery, and ensure that government revenues transparently address the needs of our citizens, rather than atrophying under the weight of new state establishments.

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Conclusion

“In conclusion, the Centre for Credible Leadership and Citizens Awareness strongly condemns any proposals for the creation of new states in Nigeria.

“Such actions would not only worsen our current economic quagmire but would also lead to heightened regional disparities, escalating governance costs, and distract from the critical reforms and policies necessary to improve the lives of Nigerians across the country.

“We urge policymakers, opinion leaders, and the general public to prioritize pressing developmental needs over cosmetic political restructuring.

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“The focus should remain on enhancing the efficiency and viability of existing states, tackling economic challenges head-on, and fostering true national unity. The call for new states is neither a panacea for our problems nor a justifiable use of national resources at this time.

“Thank you for considering this position paper. We hope it contributes to the necessary dialogue surrounding the governance challenges we face in Nigeria.

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BREAKING ! IGP Egbetokun sacks 197 officers for bypassing regulations, forgery

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The Nigerian Inspector General of Police Kayode Egbetokun has ordered the immediate retirement of senior police officers who are either over 60 years old or have served for more than 35 years.

These include Simon Lough, SAN, the Head of the NPF Legal Section and Benneth Igweh, a former Federal Capital Territory Police Commissioner.

These police officers have been implicated in forgery, falsification, and bypassing service regulations.

The directive is disclosed in a letter dated February 1, 2025, signed by CP Bode Akinbamilowo, Deputy Force Secretary, on behalf of the Inspector General of Police, and addressed to the Deputy Inspectors-General of Police, Assistant Inspectors General of Police, Commandants of Police Staff Colleges at Jos and Kano, Commissioners of Police and Commandants of Police Colleges across the country.

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The letter is titled ā€˜Re: Police Service Commission Decision At Its 1stt Extra Ordinary Meeting Of The 6thh Management Board On The Regularisation Of Date Of First Appointment Of Cadet ASPs/Inspectors Force Entrants.ā€™

It reads, ā€œAttached letter No. CH: 8400.IGP.SEC/ABJ/VOL.17/90 dates 31st January, 2025 with its attachments received from the Inspector General of Police, Force Headquarters Abuja in respect of the above underlined subject refers.

ā€œI am to convey the directive of the Inspector General of Police that you ensure comprehensive implementation of the decision with emphasis on paragraphs 3 and 4 of the attachment letter under reference.ā€

The decision of the PSC refereed to in the letter was earlier communicated to the IGP in a letter dated January 31, 2025 and signed by Nnamani Onyemuche, Secretary to the PSC.

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Paragraphs 3 and 4 to be given emphasis read: ā€œAccordingly, the Commission at its 1st extraordinary meeting of the 6th Management Board held on Friday 31st January 2025 has approved the immediate retirement of those officers who have spent 35 years in service and those above 60 years of age.

ā€œAny omission discovered subsequently on this issue also falls within this approval.ā€

Paragraph 5 reads: Please implement, inform the affected officers and make replacement for the vacancies thereafter immediately and forward to the commission for its consideration and approval.ā€

On the list of those who should have retired but still in service going by their dates of enlistment are: Simon Asamber Lough who should have retired on January 8, 2022 going by his date of enlistment.

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Others listed include Benneth Chinedu Igweh (January 5, 2023), Akinbayo Olasukami Olasoji, Louis Chike Nwabuwa, Mukar Sule, Adamu Danjuma, Ajao Olusegun, and Iriemi Solomon.

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Just in: Trump launches first US sovereign wealth fund

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U.S. President Donald Trump signed an executive order ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok.

If created, the sovereign wealth fund could place the U.S. alongside numerous other countries, particularly in the Middle East and Asia, that have launched similar funds as a way to make direct investments with government dollars.

The text of the executive order was sparse on details, and simply directed the Treasury and Commerce Departments to submit a plan for such a fund within 90 days, including recommendations on ā€œfunding mechanisms, investment strategies, fund structure, and a governance model.ā€

Typically such funds rely on a countryā€™s budget surplus to make investments, but the U.S. operates at a deficit. Its creation also would likely require approval from Congress.

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ā€œWeā€™re going to create a lot of wealth for the fund,ā€ Trump told reporters. ā€œAnd I think itā€™s about time that this country had a sovereign wealth fund.ā€

Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund ā€œgreat national endeavorsā€ like infrastructure projects such as highways and airports, manufacturing, and medical research.

Administration officials did not say how the fund would operate or be financed, but Trump has previously said it could be funded by ā€œtariffs and other intelligent things.ā€

Treasury Secretary Scott Bessent told reporters the fund would be set up within the next 12 months.

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ā€œWeā€™re going to monetize the asset side of the U.S. balance sheet for the American people,ā€ Bessent said. ā€œThereā€™ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.ā€

One approach would be to convert the U.S. International Development Finance Corp (DFC) to function similar to a sovereign wealth fund, which the Trump administration reportedly considered in recent months, Bloomberg News reported. The DFC is a government agency that currently partners with private parties to finance projects in the developing world.

Trump announced Friday he was nominating Benjamin Black to head that development agency. Black, a managing partner at investment firm Fortinbras Enterprises, is the son of Leon Black, the co-founder of asset management firm Apollo Global Management.

The Biden administration also was considering establishing such a fund prior to Trumpā€™s election in November, according to The New York Times and Financial Times.

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But precisely how such a fund would be structured, and funded, remained unclear. Several experts said Congress would likely need to authorize new funding given the lack of an existing surplus to tap. The order directed officials to review any need for legislation.

Clemence Landers, a former Treasury official who is now with the Center for Global Development, said there has been talk of repurposing the DFC but setting up such a fund would require Congress.

ā€œObviously you canā€™t establish an institution by executive order and more to the point is you canā€™t fund an institution by executive order,ā€ she said.

Investors said the news came as a surprise.
ā€œCreating a sovereign wealth fund suggests that a country has savings that will go up and can be allocated to this,ā€ said Colin Graham, head of multi-asset strategies at Robeco in London. ā€œThe economic rules of thumb donā€™t add up.ā€

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There are over 90 such funds across the world managing over $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds.

Numerous U.S. states, including Alaska, Texas and New Mexico also have their own wealth funds, which help fund various priorities, including education and tax relief. They frequently rely on revenue raised by natural resources, like oil or land.

In another surprise twist, Trump suggested the wealth fund could buy TikTok, whose fate has been up in the air since a law requiring its Chinese owner ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19.

Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law.

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Trump has said that he was in talks with multiple people over TikTokā€™s purchase and would likely have a decision on the appā€™s future in February. The popular app has about 170 million American users.

ā€œWeā€™re going to be doing something, perhaps with TikTok, and perhaps not,ā€ Trump said. ā€œIf we make the right deal, weā€™ll do it. Otherwise, we wonā€™tā€¦we might put that in the sovereign wealth fund.ā€

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