The growing rate of incidence of frauds in the nation’s banking sector is becoming worrisome. No day passes without reported cases of frauds linked mostly to the staff of the banks in question. Regrettably, majority of the cases have been blamed on what is notoriously described as “insider abuse”.
Although financial fraud globally dates far back to the creation of mankind, in Nigeria banking fraud dates back to the 1930s – the era of industrial and commercial bank distress. The magnitude of unprincipled financial activities within the industry and outside necessitated the Transparency International corruption index report of 2018 ranking Nigeria as the 168th most corrupt nation in the world.
In 2014, the Central Bank of Nigeria (CBN), withdrew the licences of 83 microfinance banks because of fraudulent activities. They were consequently liquidated by the Nigerian Deposit Insurannce Corporation (NDIC). On February 17, 2015, hackers pulled off USD $80 billion from Bank vaults. Similarly, the unrelenting cases of fraud and the increasing amount involved proportionally diminish depositors and investors’ confidence in the Nigerian financial system.
Therefore, the big question begging for answers are: what are the fundamental factors responsible for insider abuse and if factors outside the financial system equally drive fraudulent undertakings within the financial system?
Studies have shown that insider abuses in banks occur majorly where there is weak and faulty internal control, lack of job security and reward for excellence. That is why financial institutions must review their internal control system, along with staff salary, the quality of staff recruited and the audit system of the bank.
A case in point is the recent one involving some staff of a new generation bank who reportedly transfered huge sums of a customer’s money without his authorization to another account within the same bank.
Specifically, it was reported last week how the Economic and Financial Crimes Commission (EFCC), slammed a 21-count charge against two female staffers of Access Bank Plc, Olawunmi Audu and Glory Michael Sado, before an FCT High Court.
The EFCC had charged the two bankers for allegedly stealing about N197.2 million from the account of a customer, De Chimex Aluminium and Steel Company Limited, an Abuja based company.
The anti-graft agency alleged that the Defendants conspired and transfered the money from the account of De Chimex Aluminium and Steel Company Ltd which was domiciled with Access Bank Plc. The second defendant, Glory Sado, who was the Relationship Manager of the company, is said to be currently at large.
According to the report, the planned arraignment of the defendants before Justice A. O. Ebong, of the Zuba Division of the Federal Capital Territory (FCT) High Court could not hold as planned which necessitated an adjournment to March 22 at the instance of the EFCC Counsel, Halidu Mohammed, to enable the commission review the charges against the two bankers.
According to the charge which bordered on forgery and theft, the defendants, had between May and June 2018, allegedly transferred the funds to the account of a firm, Mikuch Global Ltd, which was operated by the 2nd defendant.
They were alleged to have forged a document titled: “Access Bank Fund Transfer/Standing Order From” with different serial numbers, with a purported signature of one Paschal Nwabueze Innocent, the MD of De Chimex Aluminium and Steel Company Ltd.
EFCC said the Defendants had by their action, committed offences that are punishable under sections 85, 287, and 364 of the Penal Code Act Chapter 53 Laws of the Federation Republic of Nigeria.
The matter which has suffered setback in the arraignment of the two Access Bank suspects began nearly three years ago when Mr Paschal Nwabueze Innocent noticed an infraction in his accounts accounts domiciled with Access Bank.
In a petition to the EFCC by Wisdom Elum of Wisdom Elum Chambers, Solicitors to Nawbueze Innocent, the petitioner said that no reasonable explanations were given by the bank on how the unauthorised and fraudulent withdrawals were made between April to May, 2018.
The petition to the anti graft agency further noted that “while our client persistently asked that the bank to furnish him with explanation on the observed discrepancies, the accounts officer told our client that she transfered the aforesaid sum and furnished our client with a Telex stating transfer of the said sum to a company in China.
According to the petition, “our client suspected and questioned the genuineness of the said Telex and took it to Access Bank for verification only to find out that the said telex was forged and cloned by his Account officer, Uche Michael and her cohorts”.
However, the planned arraignment of the defendants before Justice A. O. Ebong, of the Zuba Division of the Federal Capital Territory (FCT) High Court could not hold on Monday February, 2021.
The arraignment of the two Access Bank Staff was put on hold at the instance of the Counsel to EFCC, Halidu Mohammed, who asked the court for an adjournment in order to enable the commission review the charges against the two bankers standing trial.
The application for adjournment by the EFCC counsel was not opposed to by the defence counsel.
In his short ruling, Justice Ebong adjourned the matter to March 22, for their arraignment.
This is the second time the arraignment of the two bankers would be put on hold as the the first attempt at arraigning them on January, 22, 2021 suffered a setback.
According to the charge which bordered on forgery and theft, the defendants, had between May and June 2018, allegedly transferred the funds to the account of a firm, Mikuch Global Ltd, which was operated by the 2nd defendant.
They were alleged to have forged a document titled: “Access Bank Fund Transfer/Standing Order From” with different serial numbers, with a purported signature of one Paschal Nwabueze Innocent, the MD of De Chimex Aluminium and Steel Company Ltd.
EFCC said the Defendants had by their action, committed offences that are punishable under sections 85, 287, and 364 of the Penal Code Act Chapter 53 Laws of the Federation Republic of Nigeria.
The matter which has suffered setback in the arraignment of the two Access Bank suspects began nearly three years ago when Mr Paschal Nwabueze Innocent noticed an infraction in his accounts accounts domiciled with Access Bank.
In a petition to the EFCC by Wisdom Elum of Wisdom Elum Chambers, Solicitors to Nawbueze Innocent, the petitioner said that no reasonable explanation were given by the bank on how the unauthorised and fraudulent withdrawals were made between April to May, 2018.
The petition to the anti graft agency further noted that “while our client persistently asked that the bank to furnish him with explanation on the observed discrepancies, the accounts officer told our client that she transfered the aforesaid sum and furnished our client with a Telex stating transfer of the said sum to a company in China.
According to the petition, “our client suspected and questioned the genuineness of the said Telex and took it to Access Bank for verification only to find out that the said telex was forged and cloned by his Account officer, Uche Michael and her cohorts”.
Consequently, what the petitioner is looking forward to on March 22 when matter comes at the High Court is for the suspects to be properly arraigned and justice served so that can recover his money from Access Bank Plc.
*Sir Obiechina is Abuja-based Media Practitioner
