Ecobank faces EFCC investigation over alleged $285,006 fraud

Stanley Ihedigbo

Moriah Trust Limited, a customer of Ecobank Nigeria Plc, has filed a petition with the Economic and Financial Crimes Commission (EFCC), calling for an investigation into alleged fraudulent transactions involving its domiciliary account.

The petition, filed on behalf of Moriah Trust Limited and its principal, David Nwedu, seeks the EFCC’s intervention to unravel the circumstances surrounding the disputed transactions.

The petition demands that the EFCC uncover all illegal activities linked to a $285,006 Advance Payment Guarantee (APG) Bond and hold accountable any Ecobank officials who may have facilitated these 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 $285,006,” was filed on November 13, 2023, and received by the EFCC on January 26, 2024. It was signed by Olabanji A. Eniola Esq., on behalf of Umar, Gimba & Associates, the solicitors representing the petitioner. The petition was addressed to the Executive Chairman of the EFCC, Abuja, Nigeria.

The petitioner states that Moriah Trust Limited, through its principal David Nwedu, holds a domiciliary account with Ecobank Nigeria Plc (account number: 2230509622).

In 2005, during the execution of the Abidjan Lagos Transport Corridor project, Nwedu requested a 20% Advance Payment Guarantee (APG) of the total contract sum of $1,425,032.70. Ecobank Nigeria Plc complied and credited the sum of $285,006 to Moriah Trust Limited’s domiciliary account.

The petition further explained that before this, the project’s funder, the International Development Association (IDA), had advanced $70,000 to Moriah Trust Limited, leaving a balance of $215,006 of the APG sum still owed. On November 14, 2005, the IDA paid $214,996, to Ecobank, covering the APG, less the $70,000 already advanced to Moriah Trust Limited and a $10 bank transfer fee.

According to the petition, Ecobank Nigeria Plc held the $214,996 in trust.

However, when Nwedu submitted the required APG document for the discharge of his contractual obligations on January 5, 2006, the bank mistakenly credited Moriah Trust Limited’s account with $20,060,118, on January 18, 2006.

The solicitors stated that Nwedu, an honest and law-abiding individual, immediately informed Ecobank of the error, pointing out the excess amount. In response, Ecobank admitted that the account was erroneously credited with the Naira equivalent of the $214,996 APG sum.

However, despite this acknowledgment, Ecobank refused to reverse the error and instead deactivated the account, leaving the entire balance of $20,060,118 in place.

The petition alleged that Ecobank Nigeria Plc deactivated the account without Nwedu’s consent or knowledge.

In March 2008, Nwedu attempted to resolve the issue by approaching the bank to reconcile the account, only to be told that his account was inactive and needed reactivation.

Despite depositing $17,000 to reactivate the account, the bank failed to take any meaningful action.

In November 2009, Nwedu deposited an additional $3,000, but the bank still refused to reactivate the account.

Since 2019, IDA has repeatedly requested a project closure report from Nwedu, but he has been unable to provide it due to his inability to access and reconcile his account with Ecobank.

The petition asserts that Ecobank’s failure to provide records or information about the APG funds has caused significant embarrassment to Nwedu, who has been treated by the contract awarded as though he is in breach of fiduciary duty.

Given Ecobank’s unauthorized deactivation of the account and its ongoing refusal to reactivate it, the petitioners believe that the bank’s actions constitute an attempt to defraud Moriah Trust Limited of its legitimate funds.

The petition concludes by urging the EFCC to thoroughly investigate the alleged fraudulent transactions involving the account of Moriah Trust Limited and to hold accountable any Ecobank officials involved in these unlawful activities.