FG has taken over $7m found in Providus Bank Vault over non-compliance amid merger with Unity Bank.
NaijaOnPoint Nigeria reports that the Federal Government has secured a final court order to take possession of $7 million discovered in the vault of Providus Bank Limited, following a ruling by the Federal High Court in Abuja on Monday.
Justice Emeka Nwite granted the order after the Economic and Financial Crimes Commission (EFCC) proved that the funds were proceeds of unlawful activity and that no legitimate claimant came forward to contest ownership.
EFCC counsel, Rotimi Oyedepo (SAN), told the court that the anti-graft agency had met all legal requirements after an interim forfeiture order was granted on August 27. He noted that despite public notices, no opposition was filed against the forfeiture request.
“Since August 27 when your lordship granted the interim order, till date, we have not received any opposition. Hence, we filed a motion for final forfeiture,” Oyedepo said.
The suspicious funds were allegedly moved into Providus Bank’s Victoria Island branch between March 25 and 26, but were never credited to any customer account. Instead, investigators found the cash kept in the bank’s vault without documentation.
An EFCC affidavit revealed that the money was linked to Oceangate Engineering Oil and Gas Limited, though the company’s Managing Director denied making such a deposit, claiming instead to have obtained a $7 million loan from the bank.
The EFCC faulted Providus Bank for failing to file a Suspicious Transaction Report (STR) with the Nigerian Financial Intelligence Unit (NFIU), describing the transaction as a breach of financial compliance obligations.
Justice Nwite, in his ruling, said the commission had established merit in its application and ordered the permanent forfeiture of the money to the Federal Government.
The funds, earlier recovered in cash, are now in the custody of the Central Bank of Nigeria.
NaijaOnPoint Nigeria reports that the ruling is another boost to Nigeria’s anti-corruption drive and comes days ahead of Unity Bank’s September 26 shareholder meeting, where the proposed merger with Providus Bank will be reviewed. Under the scheme, Unity Bank shareholders are expected to receive either N3.18 per share or 18 Providus Bank shares for every 17 Unity Bank shares held.