In a decisive move against alleged financial misconduct, a Federal High Court in Abuja, on Friday, issued an interim order freezing 21 bank accounts linked to suspected fraudulent activities. The court also directed the police to apprehend the account holders, marking a significant step in an ongoing investigation into money laundering and breach of trust allegations.
Presiding over the case, Justice Emeka Nwite granted the order following an ex-parte motion filed by Ibrahim Mohammed, counsel for the Inspector-General of Police (I-G). The motion, marked as FHC/ABJ/CS/1965/V/2024, also directed the banks to restrict transactions on the accounts while allowing inflows pending the conclusion of investigations.
Scope of the Order
Justice Nwite instructed the banks to:
- Issue details of the account packages.
- Implement a “Post-No-Debit” (PND) order on the accounts.
- Disable ATM services linked to the accounts.
The judge, however, limited the duration of the freezing order to 90 days, emphasizing the need for a thorough but timely investigation. The case has been adjourned until April 3 for mention.
The financial institutions affected include major Nigerian banks such as Access Bank, Sterling Bank, Wema Bank, Fidelity Bank, Zenith Bank, Union Bank, GTBank, UBA, Stanbic IBTC, First Monument Bank, Heritage Bank, TAJ Bank, and Keystone Bank.
Allegations of Fraud and Money Laundering
According to court filings, the accounts under investigation are suspected to be linked to the proceeds of unlawful activities. The I-G’s motion alleges that any further transactions involving the accounts could compromise the investigation and render any subsequent court orders ineffective.
Details of the Case
Glory Ohio, a detective with the Force Criminal Investigation Department, detailed the alleged misconduct in an affidavit. The allegations stem from a petition received on February 12, 2024, involving claims of stealing, breach of trust, and money laundering.
The petitioner reportedly entered into a joint venture agreement with the suspect under the auspices of Indetix Limited, a Special Purpose Vehicle (SPV) company. The agreement was intended to facilitate the execution of a contract awarded by the Nigerian Navy, involving the supply of ICT equipment, wooden canoes, outboard engines, inverter batteries, and firefighting equipment.
Both parties initially established a joint account with Zenith Bank as co-signatories, under a memorandum of understanding stipulating a 15% profit-sharing clause. However, the petitioner alleged that the suspect unilaterally altered the agreement, reduced the profit-sharing percentage, and subsequently removed the petitioner as a signatory, making himself the sole signatory to the account.
The suspect allegedly transferred funds from the joint account to various other accounts in a bid to conceal the origin of the money. Investigators claim these actions were deliberate attempts to launder money and disguise the illicit activities.
Court’s Intervention
The police, citing intelligence reports, argued that the suspects were actively attempting to withdraw or transfer funds from the accounts. The motion stressed that such actions could jeopardize the investigation if not immediately curtailed.
Justice Nwite, upon reviewing the evidence and submissions, found the ex-parte application meritorious. The freezing order and related directives aim to preserve the integrity of the investigation and prevent further dissipation of funds.
Next Steps
The police are now tasked with gathering further evidence and prosecuting the case, while the affected banks must comply with the court’s directives. The outcome of this investigation could set a significant precedent in Nigeria’s fight against financial crimes and reinforce accountability within the banking sector.
The News Agency of Nigeria (NAN) will continue to monitor developments as the case progresses.
