Categories: Finance

CBN, Shell, and Sterling Bank Under Scrutiny for Alleged Financial Mismanagement

The House Committee on Public Accounts has launched an investigation into the Central Bank of Nigeria (CBN), Shell Petroleum Development Company, and Sterling Bank over allegations of money laundering, fraudulent deductions, and other financial mismanagement.

The inquiry follows a petition filed by Maiden Systems Ltd concerning irregularities in financial transactions.

The committee, chaired by Hon. Mike Etaba, reviewed findings presented by representatives of the Inspector General of Police, Chief Inspectors Kabiru Yahaya and Sunny Amison.

The police report, based on extensive investigations and arrests, identified discrepancies in account statements and transactions related to Maiden Systems Ltd.

“In the course of our investigation, findings emerged about the issue of non-issuance of statements of account, fraudulent debits, and misappropriation of funds,” said CSP Amison.

He further alleged that Maiden Systems Ltd faced challenges obtaining accurate account statements from Sterling Bank.

The investigation revealed that Maiden Systems Ltd operated four accounts with Sterling Bank—two in U.S. dollars and two in Nigerian naira, Investors King reports.

These accounts were reportedly debited $28.3 million for loan repayment that lacked adequate documentation or explanation.

“On 29th September 2016, the sum of $2,413,000 was debited from the company’s account for loan repayment. On 14th November 2016, $1.256 million was similarly debited. On 16th January 2017, $28,302,140.59 was withdrawn, yet the bank has not provided satisfactory clarification,” Amison disclosed.

The investigation also flagged a Debt Service Repayment Account (DSRA) tied to a $30 million loan initially offered in 2012 and restructured in 2017. Despite the debits, the outstanding balance appeared unresolved.

“One of the account officers wrote that the balance was about $27.25 million, while an executive director stated it was over $30 million,” Amison added.

Further complicating matters, the report showed inconsistencies in Shell’s financial disclosures.

The company failed to provide records for 2021 through 2024 with discrepancies noted in its handling of remittances linked to Maiden Systems Ltd.

In response, Chairman Etaba assured that the committee would ensure justice for all parties involved. “We are committed to uncovering the truth and holding those responsible accountable,” he said.

The committee’s findings suggest potential violations, including financial mismanagement, fraudulent debits, and money laundering.

Lawmakers emphasised the need for Sterling Bank, CBN, and Shell to provide comprehensive explanations and evidence to refute the allegations.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Moniepoint Partners With Visa to Expand Financial Services for African Businesses

Moniepoint Inc., a leading financial platform in Nigeria, has announced a partnership with Visa, a…

1 hour ago

Ecobank and CrediCorp Launch Affordable Loan Programme for Salary Earners

Ecobank Nigeria, in partnership with the Nigerian Consumer Credit Corporation (CrediCorp), has unveiled an innovative…

2 hours ago

Wema Bank Completes N40 Billion First Tranche, Eyes N200 Billion Final Capital Raise

Wema Bank Plc has announced plans to complete its capital raise with a combination of…

3 hours ago

Nigeria Secures $6.7 Billion Energy Sector Investment in 2024

The Federal Government has revealed that Nigeria’s energy sector received a total investment of $6.7…

4 hours ago

UK Tightens Grip on Apple and Google With Antitrust Investigations into iOS and Android

The UK’s Competition and Markets Authority (CMA) has launched antitrust investigations into Apple Inc. and…

5 hours ago

Nigeria Nears 1.5 Million-Barrel OPEC+ Quota as Output Climbs Amid Security Gains

Africa’s largest crude oil producer, Nigeria, oil production is nearing its 1.5 million-barrel-per-day (bpd) quota…

6 hours ago