Miden Systems Limited has taken Sterling Bank Limited and its management staff to court over alleged conspiracy, fraudulent practices, forgery, criminal breach of trust and misappropriation of funds.
Miden Systems, an engineering, maritime and consultancy services firm, maintains a corporate account with the bank.
The case was filed before Magistrate Njideka Duru of the Chief Magistrates’ Court sitting in Wuse Zone II, Abuja.
The complainant alleged that the bank, through its Chief Executive Officer, Sterling Financial Holdings Company Plc and four other defendants, committed the offences.
The matter, which was scheduled for mention on Monday, could not proceed due to the ongoing Nigerian Bar Association (NBA) conference in Enugu State. It was adjourned until Sept. 10 for mention.
In a 29-page complaint, the company alleged that the defendants used its name to open several spurious accounts through which funds domiciled with the bank were siphoned, amounting to over 200 million dollars.
Through its counsel, Mr Louis Alozie (SAN), the firm alleged that funds were diverted with reckless abandon, with massive and questionable debits recorded against its account.
The charge stated that despite consistent demands, the company was denied statements of account and access to its funds.
It further claimed that, without informing the complainant or making any demands, the defendants placed liens on all its accounts, effectively cutting off access to its money.
The complainant argued that it was the responsibility of the bank to communicate any transactions or decisions concerning its accounts before taking action.
It alleged that dollar remittances paid to it were withheld and traded by the defendants rather than used to settle loan obligations.
“In one instance, Miden Systems Limited’s principal remitted revenues in dollars to its account while the exchange rate was about N150 to a dollar, and the market rate was about N198 to a dollar. The bank stockpiled over N2 billion in Miden’s account after taking its spread,” the company stated.
It said that during that period, the naira depreciated to about N500 to a dollar. “Upon pressure from Miden, the bank sold the stockpiled N2 billion at a high naira exchange rate, making the original value of the dollar almost worthless.”
The complainant further stated that the defendants denied it cheque books and internet banking access, which it said was deliberately done to conceal transactions.
It claimed it had cleared all loan obligations to Sterling Bank in July 2017. “About three months later, the bank booked an unsolicited loan of about 30 million dollars into Miden Systems Limited’s account,” the complaint read.
It added that on the same day, the bank issued an offer letter for the loan, allegedly authorised by a purported board of directors of Miden, and approved by the bank’s board. Disbursement followed immediately, with over one million dollars allegedly sent to an individual identified as ‘AA’, and the remaining 29 million dollars transferred to the same person days later.
Miden insisted it never applied for or accepted the loan, and that the signatures used were not those of its board members.
In another case, the bank allegedly booked a three million dollar loan to Chasewood Limited. Upon discovery, Chasewood reportedly denied applying for the loan. The bank then transferred the loan to Miden’s account, claiming Chasewood was a sister company. Miden maintained Chasewood was a separate entity with no ownership ties.
The complaint also alleged identity theft in a loan facility purportedly involving Afrexim Bank, with forged signatures of persons unknown to Miden.
It further claimed the defendants opened accounts in its name using an unfamiliar office address in Abuja.
After failed attempts to resolve the matter, the company petitioned the House of Representatives Committee on Public Petitions, which referred the case to the Inspector-General of Police.
Following investigations, the police reportedly issued a report in February 2025, in which the defendants were indicted.
(NAN)