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Ecobank

$285,006 fraud allegation: Firm takes Ecobank to EFCC

Ecobank Nigeria Plc’s customer, Moriah Trust Limited and its alter ego David Nwedu have petitioned the Economic and Financial Crimes Commission (EFCC) to investigate and uncover all fraudulent/illegal transactions allegedly perpetuated by Ecobank Nigeria Plc in the domiciliary account of Moriah Trust Limited with regard to $285,006 Advance Payment Guarantee Bond (APG) and bring to book every official of the bank who aided and abated such criminal and illegal transactions.

The petition titled “CRIMINAL COMPLAINT AGAINST ECOBANK NIGERIA PLC ON AN ATTEMPT TO DEFRAUD MORIAH TRUST LIMITED OF AN ADVANCE PAYMENT GUARANTEE BANK BOND NO G 00613 FOR TWO HUNDRED AND EIGHTY-FIVE THOUSAND SIX UNITED STATES DOLLARS ($ 285, 006)” dated November 13, 2023, filed and received on January 26, 2024 was signed by Olabanji A. Eniola Esq. on behalf of UMAR, GIMBA & ASSOCIATES, solicitors to the petitioner and addressed to the Executive Chairman, EFCC headquarters, Abuja, Nigeria.

In the petition, the petitioner (alter ego of the firm) through their solicitor stated that as a customer of Ecobank Nigeria Plc, he has a domiciliary account number: 2230509622 with the name Moriah Trust Limited.

It was stated that in 2025 while in the course of carrying out a project described as ‘Abidjan Lagos Transport Corridor’ project, the petitioner (Nwedu) requested for a 20 percent Advance Payment Guarantee (APG) of the contract sum of USD 1, 425, 032.70 (One Million, Four Hundred and Twenty Five Thousand, Thirty Two United States Dollars, Seventy United States Cent) from Ecobank Nigeria Plc. The bank obliged him and credited his above named domiciliary account with the sum of $285, 006.00.

The solicitors averred that prior to the EcoBank Nigeria Plc making the payment into their client’s account, the awarder of the contract, International Development Association (IDA) had advanced the sum of USD70,000 to their client (petitioner) so they had a balance of USD215,006.00 of the APG sum to pay to him .

According to the petition, on November 14th, 2005, the awarder of the contract (IDA) on behalf of the petitioner, paid the sum of USD 214, 996 (Two Hundred and Fourteen Thousand, Nine Hundred and Ninety Six United States Dollars) to Ecobank Nigeria Plc. The sum was to serve as the APG amount less USD 70,000 already advanced to the firm by IDA and USD10.00 being Bank Transfer charges.

“This sum of USD 214, 996 was warehoused by Ecobank Nigeria Plc pending the discharge of the APG.”

It was stated in the petition that on the 5th of January, 2006, Mr Nwedu (petitioner) returned the APG document as required, for full discharge of contractual obligation to the bank, and rather than crediting his domiciliary account with the warehoused sum of USD 214, 996, Ecobank Nigeria Plc credited the said account with the sum of USD 20, 060, 118 (Twenty Million, Sixty Thousand, One Hundred and Eighteen United States Dollars), on 18th of January, 2006.

“Our client Nwedu being an honest and law-abiding citizen who is uninterested in illicit funds and unlawful enrichment drew Ecobank Nigeria Plc attention to the excess amount credited to him”.

“Thereafter, our client was informed that Ecobank Nigeria Plc erroneously credited his account with the Naira value of the warehoused sum of USD 214, 996.

“To the greatest surprise of our client, Ecobank Nigeria Plc refused to reverse the erroneous entry but rather deactivated our client’s account with entire sum of USD 20,060,118 still standing as credit balance in the account. Our client’s account was deactivated without their knowledge or consent”.

The solicitors averred that in March 2008, Nwedu approached Ecobank Nigeria Plc to reconcile his statement of account and was informed that his account is inactive and there was a need for re-activation.

“In an attempt to re-activate the account, our client deposited the sum of USD 17,000 (Seventeen Thousand United States Dollars) into his account, but unfortunately, the issue was treated with levity.

“On the 17th of November 2009, our client further deposited the sum of USD $ 3,000 in a further attempt to re-activate his account and for full and final reconciliation but the bank deliberately refused to re-activate the account.”

It was stated in the petition that from 2019 till date, the contract awarder- International Development Association (World Bank) has been requesting for a project closure report from Mr Nwedu which he has been unable to provide as a result of his inability to access and reconcile his account held with Ecobank Nigeria Plc.

“This set back is owing to Ecobank Nigeria Plc inability to provide any information and records on the APG funds paid to the bank by the IDA, an action which has caused “our client irreparable embarrassment as the contract awarder has continued to treat this failure as a fiduciary breach”.

Upon considering the unauthorised deactivation of Moriah Trust Limited Domiciliary account by Ecobank Nigeria Plc with no explanation whatsoever, and the subsequent deliberate refusal of the bank to re-activate the same account, “we are forced to believe that the action of Ecobank Nigeria Plc is an attempt to defraud Moriah Trust Limited of its hard earned legitimate funds”.

Consequently, petitioner’s solicitors humbly implore EFCC Boss to use his good office to investigate and uncover all the illegal transactions that Ecobank Nigeria Plc must have perpetuated, using the domiciliary account of Moriah Trust Limited hence, their refusal to re-activate the same account.
“More so, we urge you to bring to book every official of Ecobank Nigeria Plc who must have aided and abated such criminal and illegal transactions”.the petitioner through his solicitor implores.