Sterling Bank Limited has found itself embroiled in a controversy as serious allegations of money laundering and fraud involving $28.3 million have come to light. These allegations were brought forward by Miden Systems Ltd and its director, Dr. Brendan Innocent Usoro. The case began gaining traction following a petition submitted by Miden Systems Ltd, which led to an extensive investigation by the Police Force CID in Abuja. The investigation’s results were subsequently presented to the House of Representatives Committee on Public Petitions, resulting in an indictment against Sterling Bank for alleged financial mismanagement, fraudulent debits, and misappropriation of funds from Miden Systems Ltd’s account.
Investigation and Findings
Police Force CID Investigation
The investigation led by representatives of the Inspector General of Police, including Chief Inspectors Kabiru Yahaya and Sunny Amison, underscored Sterling Bank’s inability to provide substantive evidence to counter the fraud allegations. The police investigation revealed significant discrepancies, primarily focusing on four accounts operated by Sterling Bank for Miden Systems Ltd—specifically two U.S. dollar accounts and two NGN accounts. Discrepancies included the non-issuance of account statements, numerous fraudulent debits, and misappropriation of funds.
Detailed inspections and audits of these accounts indicated that there were multiple irregularities, which the bank failed to clarify satisfactorily. Furthermore, the investigation highlighted a persistent pattern where the bank did not issue timely account statements. This negligence raised serious concerns about the bank’s internal control mechanisms and its adherence to standard financial practices. The policing authorities stressed that the evidence suggested systemic flaws in Sterling Bank’s operations, further complicating the case.
Shell Petroleum Remittances
One of the significant issues unearthed during the investigation involved major remittances made to Miden Systems’ account from Shell Petroleum Development Company Limited. The investigation found that Shell Petroleum consistently failed to furnish financial reports for the years 2021 through 2024. This significant lapse in providing financial documentation further complicated the case, as it appeared to be a deliberate omission. An account officer from the bank claimed that the company was provided with account statements electronically or via SMS, yet no evidence was produced to support these claims.
The investigation noted additional discrepancies in the bank-generated statements of account. These discrepancies, coupled with the absence of hardproof account statements, triggered suspicion about the integrity of the financial records maintained by Sterling Bank. Consequently, the lack of proper documentation from Shell and the bank’s inability to corroborate the provision of account statements left a substantial gap in the financial tracking and transparency of these transactions.
Sterling Bank’s Response
Rebuttal by Sterling Bank
Sterling Bank swiftly responded to the allegations through its Chief Marketing Officer, Mr. Maurice Igugu, stating that the Police’s actions constituted a direct assault on judicial authority and principles of justice. The bank referred to a ruling by the Federal High Court on October 18, 2021, which established Miden Systems Ltd’s liability and mandated adherence to the agreed settlement terms. Despite this ruling, Sterling Bank asserted that Miden Systems Ltd and Dr. Usoro engaged in a pattern of non-compliance involving the misappropriation of loan funds, manipulation of corporate structures, the abuse of legal processes, and attempts to intimidate bank officials.
The bank emphasized that it had always adhered to legal frameworks and judicial rulings. Sterling Bank accused Dr. Usoro and Miden Systems Ltd of continuous defiance of legal settlements. Moreover, the bank portrayed itself as a victim of uneven power dynamics, where influential individuals exploit political connections to evade justice and pressure banking executives through intimidation and manipulation tactics. This portrayal aimed to shift the narrative toward showing Sterling Bank as committed to upholding legal commitments.
Allegations Against Dr. Usoro
In its reply, Sterling Bank expressed deep concerns over the alleged abuse of power by the Police Force CID and the National Assembly, emphasizing the misuse of political influence by individuals aiming to thwart their financial and legal responsibilities. Sterling Bank accused Dr. Usoro of leveraging political connections to obstruct justice and harass the bank’s top executives through intimidation tactics. In response, Sterling Bank sought the intervention of the Inspector General of Police (IGP) by submitting a detailed petition through their legal counsel, Kunle Ogunba, SAN.
The petition accused Dr. Usoro and Miden Systems Ltd of diverting loan funds for personal use, defaulting on loan obligations, misappropriating assets, and illegally restructuring the company’s shareholding. In addition to these grave allegations, the petition underscored the efforts to obstruct justice through various legal maneuvers, further accusing Dr. Usoro of deploying strategies to manipulate and intimidate the bank’s officials. Sterling Bank called on the authorities to investigate these allegations thoroughly and ensure that justice prevails.
Public and Stakeholder Communication
Sterling Bank’s Appeal
Amidst the contentious legal battle, Sterling Bank appealed to its stakeholders, customers, and the public to disregard the unsubstantiated accusations against the bank and prioritize factual information. The bank’s narrative suggests it is determined to protect its reputation and the interests of its customers while holding debtors fully accountable for their financial obligations. Sterling Bank emphasized its transparency and fidelity to judicial processes, urging the public to scrutinize the facts objectively before forming opinions on the matter.
The bank assured its stakeholders that it would continue to provide truthful information and remain committed to operating within the legal and ethical boundaries. This reassurance aimed at calming any rising concerns among the stakeholders and maintaining their confidence amidst the swirling allegations. Sterling Bank’s appeal highlighted its dedication to truth and justice, underlining that unsubstantiated claims should not overshadow the facts and fairness of the judicial process.
Commitment to Judicial Process
Sterling Bank Limited is currently in the midst of a serious controversy, facing heavy allegations of money laundering and fraud amounting to $28.3 million. These charges have been leveled by Miden Systems Ltd and its director, Dr. Brendan Innocent Usoro. The case began gaining momentum following a detailed petition submitted by Miden Systems, which prompted a thorough investigation by the Police Force CID in Abuja. The investigation’s findings were then presented to the House of Representatives Committee on Public Petitions. As a result, Sterling Bank was indicted for alleged financial mismanagement, unauthorized debits, and the misappropriation of funds from Miden Systems Ltd’s account. The gravity of these accusations has put Sterling Bank under intense scrutiny, raising significant concerns about its financial practices and integrity within the business community. These developments have not only tainted the bank’s reputation but have also triggered discussions about regulatory oversight in the banking sector.
