AGAIN: Ecobank Faces $285,006 Scandal as Firm Petitions EFCC

Ecobank Nigeria Plc is at the center of a $285,006 scandal following allegations of fraudulent and illegal transactions involving the domiciliary account of Moriah Trust Limited. The company and its representative, David Nwedu, have filed a petition with the Economic and Financial Crimes Commission (EFCC), urging an investigation and prosecution of those involved.

The petition, titled “Criminal Complaint Against Ecobank Nigeria Plc on an Attempt to Defraud Moriah Trust Limited of an Advance Payment Guarantee Bank Bond”, was submitted on January 26, 2024, by legal representatives from Umar, Gimba & Associates. It accuses Ecobank of mishandling funds related to an Advance Payment Guarantee (APG) bond linked to a 2005 project, the Abidjan Lagos Transport Corridor.

Alleged Mishandling of Funds
The dispute traces back to a $285,006 APG bond issued by Ecobank to Moriah Trust Limited for the contract, valued at $1,425,032.70. According to the petition, Ecobank received $214,996 from the International Development Association (IDA) on behalf of Moriah Trust, intended as the balance of the APG after initial deductions.

However, when the APG was discharged in January 2006, Ecobank allegedly credited Moriah Trust’s account with an inflated sum of $20,060,118. Upon realizing the error, Mr. Nwedu immediately alerted the bank, which subsequently deactivated his account without explanation or consent.

Failed Reconciliation Attempts

Efforts by Mr. Nwedu to reactivate the account have been unsuccessful. Between 2008 and 2009, he deposited a total of $20,000 in attempts to reconcile the account, but the bank allegedly failed to respond. This prolonged dispute has hindered Moriah Trust from submitting a required project closure report to the IDA, causing reputational damage.

Call for EFCC Investigation
In the petition, Moriah Trust accuses Ecobank of deliberately withholding records and deactivating the account to cover up fraudulent activities. The firm seeks EFCC’s intervention to investigate the transactions and prosecute any bank officials involved.

“We urge the EFCC to uncover all illegal transactions conducted using our client’s domiciliary account and bring every culpable official of Ecobank Nigeria Plc to justice,” the petition states.

The EFCC has yet to comment on the matter, and Ecobank Nigeria Plc has not issued a public response.