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Petro Union $15Bn Fraud Case: Supreme Court Okays Union Bank’s Appeal Bid

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The Supreme Court has granted the application by Union Bank Plc to appeal the Court of Appeal judgement against the Central Bank of Nigeria (CBN), Union Bank, Minister of Finance and the Attorney-General of the Federation.

Petro Union $15Bn Fraud Case: Supreme Court Okays Union Bank’s Appeal Bid

The Federal High Court had in 2014 awarded the sum of £2.550 billion with 15 percent interest per annum to(Petro Union).

The case, which drew the attention and concern of many Nigerians, has been likened to the infamous $10 billion Process and Industrial Development (P&ID) matter, as Petro Union and its directors had sought to compel the CBN, Union Bank and the other agencies of the federal government to deplete the nation’s treasury to the tune of $15 billion over a transaction that appears to be entirely fictitious and fraudulent.

The apex court, in a lead ruling delivered by Justice Adamu Jauro, dismissed the preliminary objection filed by Petro Union, the beneficiary of the £2.550 billion judgment and granted Union Bank permission to appeal against the judgment of the lower court.

Union Bank was given 30 days after the appeal is entered to file its brief of arguments.

The court dismissed the preliminary objection on the basis that the previous ruling of the court on 16 December 2018 was not on the merits.

The series of strange events began in 1994, when Petro Union allegedly fraudulently procured a cheque from a branch of Barclays Bank in the UK with a value of £2.556 billion and presented it at one of Union Bank’s branches in Lagos, with a claim that it planned to construct some refineries and establish a bank.

Union Bank subsequently turned the cheque over to the relevant authorities, and Petro Union in turn filed a lawsuit at the Federal High Court in a bid to compel the CBN, Union Bank, minister of finance and the attorney-general of the federation to honour the cheque.

The court, against all known legal principles relating to banker-customer relationships and the clearing of a bill of exchange, upheld all Petro Union’s claims without question or interrogation and gave judgment to the company against the CBN, Union Bank, minister of finance and attorney-general of the federation jointly and severally.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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