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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 Miden  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 Miden  System Ltd.
He said: “We were saddled with the responsibility to investigate mismanagement, fraudulent debit, and misappropriation of funds from the account of Miden  Systems Limited by Sterling Bank.
“In 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, Miden  Systems Limited raised the issue of accounts. There are four accounts operated by Sterling Bank Plc for Miden  Systems Limited. Two are U.S. dollar accounts, while two are Nigeria NGN accounts.
“Major remittance is coming to the account of Miden  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 Miden  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. There’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.”
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 Miden  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 there’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,” Etaba assured.

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Senate mulls terrorism charges for oil theft offenders

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The Senate, yesterday, issued a stern warning that perpetrators of oil theft in the Niger Delta region may soon face terrorism charges and other stiffer penalties.

Senate President, Godswill Akpabio, disclosed this while declaring open a two-day public hearing on the “Incessant and nefarious acts of crude oil thefts in the Niger Delta and the actors held.”

The hearing organised by the Senate Ad-hoc Committee on Incessant Crude Oil Theft chaired by Ned Nwoko is aimed at addressing the persistent theft of crude oil in the Niger Delta and produce actionable solutions to the problem.

Akpabio, who was represented by his deputy, Barau Jibrin, said the 10th National Assembly would not stand idly by as the country loses billions of dollars annually to what he described as “brazen economic sabotage.”

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He disclosed that the National Assembly was considering a range of strong legislative responses, including categorising major acts of oil theft as terrorism, mandatory digital metering for all oil production and exports, real-time monitoring, improved transparency in crude lifting and revenue reporting, as well as enhanced coordination among military, law enforcement, and anti-corruption agencies.

“Crude oil theft is not a victimless crime. It is directly responsible for economic instability, a weakened naira, underfunded critical sectors, and widespread poverty in oil-producing communities. It also finances illegal arms, fuels violence, and strengthens criminal networks.”

Akpabio lamented that despite past efforts, crude oil theft continues unabated due to systemic failures and gaps in enforcement and oversight. Recent reports estimate that Nigeria loses between 150,000 and 400,000 barrels of crude oil daily, costing the country billions in lost revenue.

“This public hearing must address critical questions: Who are the perpetrators? Are they militants, corrupt officials, international collaborators—or all three? Why have current security measures failed? And how are stolen shipments leaving the country undetected?” he asked.

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The Senate President called on all stakeholders including regulatory agencies, oil companies, security forces and host communities, to work collaboratively to stop the looting of the country’s most valuable resource. He emphasised that oil companies must invest in surveillance technology and secure infrastructure, while host communities should act as first-line defenders rather than victims or accomplices.

“To the criminals stealing our crude oil, your time is up. To the agencies tasked with protecting our resources, the nation is watching. And to this Ad-hoc Committee, the Senate expects a robust, no-holds-barred report that will guide firm legislative and executive action.”

Akpabio commended Nwoko, who chairs the Committee convening the hearing and stressed that the recommendations must lead to actionable, measurable and time-bound solutions.”

“The survival of Nigeria’s economy depends on how we respond to this crisis,” he concluded.

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Meanwhile, ahead of its planned two-day national security summit, the Senate, yesterday, set up a 20-member committee to organise the event.

The Senate President, Akpabio, who announced the committee’s formation during plenary, said it would be chaired by the Senate Leader, Opeyemi Bamidele, with Yahaya Abdullahi serving as the vice chairman.

Other members are Ireti Kingibe (FCT), Adebule Idiat (Lagos), Barinada Mpigi (Rivers), Babangida Hussaini (Jigawa), Jimoh Ibrahim (Ondo), Osita Ngwu (Enugu), Tahir Monguno (Borno), Titus Zam (Benue), Ahmed Lawan (Yobe), Abdulaziz Yar’Adua (Katsina), Gbenga Daniel (Ogun), Austin Akobundu (Abia), Shehu Buba (Bauchi), Ahmed Madori (Jigawa), Emmanuel Udende (Benue), Adams Oshiomhole (Edo), Shuaib Salisu (Ogun), Isah Jibrin (Kogi) and the Clerk of the Senate, Andrew Nwoba.

The committee is tasked with developing the summit’s framework, including setting the agenda, identifying core issues for discussion, and recommending actionable strategies to improve national security. Akpabio directed the committee to submit its report within two weeks.

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The decision to convene the summit followed a resolution passed on May 6 after a motion sponsored by Jimoh Ibrahim to address escalating security challenges in the country was adopted. It is expected to address pressing issues such as terrorism, insurgency, and the alarming trend of leaking military intelligence to militant groups, an issue widely seen as compromising ongoing security operations.

This is not the first time the National Assembly would attempt to address security concerns through a summit. In May 2021, the ninth Assembly, under the then Senate President, Ahmad Lawan and House Speaker, Femi Gbajabiamila, organised a similar summit. Despite contributions from security experts, civil societies, and government agencies, insecurity has continued to plague the country.

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Court convicts 10 Thai sailors, vessel for cocaine trafficking

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Justice Daniel Osiagor of the Federal High Court in Lagos on Thursday convicted ten Thai nationals for trafficking 32.9 kilograms of cocaine into Nigeria.

The convicted individuals, all sailors, were found guilty alongside their vessel, MV Chayanee Naree, which was used to smuggle the illicit drug into the country.

The convicted Thais’ sailors are: Krilerk Tanakhan; Boonlert Hansoongnern; Jakkarin Booncharoen; Thammarong Put-tlek; Worrapat Paopinta; Marut Kantaprom; Werapat Somboonying; Urkit Amsri; Panudet Jaisuk, and Amrat Thawom.

The vessel and convicted sailors were first arraigned before the court alongside nine Nigerians, on the alleged offences in February 2022, by the National Drug Law Enforcement Agency (NDLEA).

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The Nigerians are: Samuel Messiah; Ishaya Maisamari; Ilesanmi Ayo Abbey; Osabeye Stephen; Gbenga Ogunfadeke; Kayode Buletiri; Rilwan Omotosho Liasu; Saidi Sule Alani, and Jamiu Adewale Yusuf.

The vessel, the convicted sailors and the nine Nigerians were arrested on October 13, 2021, at Apapa, Lagos, on their arrival from Brazil.

They were charged before the court on charges bordering on conspiracy, unlawful transportation and unlawful importation of 32.9 kilograms of Cocaine.

Their illegal acts, according to the NDLEA, contravened sections 11 (b), 11(a) and 14 (b) of the National Drug Law Enforcement Agency Act Cap N30 Laws of the Federation of Nigeria, 2004. And punishable under the same Act.

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The convicted Thais and their Nigerian alleged co-conspirators were accused of committing the acts alongside the trio of Kehinde Enoch, Ayo Joseph and one Tunde, all said to be at large.

The convicted sailors were prosecuted by the NDLEA prosecutors, who include; Mrs Theresa Asuquo, A. Adebayo and Paul Awogbuyi. While they were defended by their team of lawyers, who include Babajide Koku, Femi atoyebi and Tunde Adejuyigbe, who are Senior Advocates of Nigeria (SAN).

Upon conclusion of the NDLEA’s case, the convicted sailors opted for No-Case-Submission instead of opening their defence against the allegations against them. This was, however, contended by the prosecutors, who submitted that they had established a prima facie case against the vessel and its Crew.

In deciding the No-Case-Submission, Justice Osiagor acceded to the submissions of the prosecution and held that the prosecution had established a prima facie case against the vessel and its Crew members.

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The judge therefore ordered the convicted Thais and others to open their defence against the charges against them.

Based on the court’s ruling, the convicted sailors entered a plea bargain agreement with the NDLEA.

At the resumed hearing of the matter for judgment today, and based on the plea bargain agreement, Justice Osiagor ordered the vessel to pay a fine of $4 million USD or Naira equivalent.

On the convicted sailors, the judge ordered the three Captains of the vessel, namely; Krilerk Tanakhan; Boonlert Hansoongnern; Jakkarin Booncharoen; to pay the sum of $50, 000, 00 USD. And that the other crew member to pay $30, 000, USD each. And that other convicted sailors are ordered to pay the sum of N100,000. 00, as a fine optio n.

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Meanwhile, the trial of the nine Nigerians has been adjourned to June 25.

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Court of Appeal affirms nullification of Ebonyi council polls

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The Court of Appeal Enugu Division has affirmed the judgement of Justice R O Riman of the Federal High Court Abakaliki, nullifying the conduct of Local Government election in Ebonyi State.

Justice Joseph Ekanem, who read the lead judgement of the Appeal court, gave the ruling while dismissing the three appeals filed by Ebonyi State Government, Central Bank and Local Government Chairmen, challenging the ruling of the Federal High Court.

The Appeal Court ruled that the earlier judgement of Justice R O Riman then of Federal High Court Abakaliki remains valid and subsisting.

According to the Appeal court: “The judgment in FHC/AI/CS/224/2022, which the Appellants challenged on appeal, was meant to enforce compliance with the earlier judgment in FHC/AI/CS/151/2022 contrary to the argument of the appellants.”

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The court ruled that the appeals were dismissed for proliferation of issues for determination by the appellants which resulted in an incompetent brief of argument.

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