Sterling Bank Under Fire: Allegations of Diverted Kaduna State Funds Surface

A Federal High Court in Kaduna has ordered the interim forfeiture of ₦1.37 billion allegedly diverted from the Kaduna State Government’s light rail project fund into a private account.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) traced the funds to Indo Kaduna MRTS JV Nig. Ltd, a joint venture between the state government and Indian investors. Investigations revealed that despite the company’s lack of formal incorporation at the time, the previous administration approved payments totaling ₦11.1 billion between December 2016 and January 2017.

The court has mandated the publication of this notice in two national newspapers, inviting interested parties to present their claims before a final forfeiture decision is made.

Kaduna Light Rail Funds Controversy: Court Orders Seizure of ₦1.37 Billion

The ICPC has uncovered that the Kaduna State Government, under the administration of former Governor Nasir El-Rufai, entered into a joint venture agreement in October 2016 with Indo Kaduna MRTS JV Nig. Ltd for the development of a light rail transport system.

Despite the company’s lack of formal incorporation at the time, payments totaling ₦11.1 billion were made to its Sterling Bank account between December 2016 and January 2017. Of this amount, ₦1.37 billion was allegedly diverted into a private account, leading the ICPC to seek an interim forfeiture of the funds.