‘Bank Manager, Chinese Expatriates’ N17 Billion Fraud: A Dangerous Economic Sabotage

There is significant danger looming in the Nigerian banking system which we must all pay attention to. In an outrageous display of collusion and fraud, an exclusive report by Peoples Gazette has unveiled how a Lokoja Branch Manager of one of the nations commercial Banks, one Salawu Nasiru, alongside Chinese expatriates Liu Yangxi and Ma Zhuang, exploited Nigeria’s banking system to siphon billions from two Nigerian ceramic companies. This case underscores a glaring issue: the complicity of financial insiders in enabling foreign nationals to defraud the very institutions they are entrusted to safeguard.

The fraudulent activities, meticulously orchestrated between November 2021 and August 2023, involved obtaining dubious loans totaling N17 billion under the names of BN Ceramic Industry Limited and NB Ceramic Limited without the knowledge of the actual companies’ management. This scandal is not just a financial debacle; it’s an egregious act of economic sabotage.

Salawu, Liu, and Ma’s scheme was as elaborate as it was devious. Liu, a director and shareholder in the ceramic companies, falsified signatures and illegally presented himself as the managing director. With the help of Salawu, they secured five loans despite the forged signatures. Each loan approval process was fraught with deceit and manipulation. Liu and Ma, assisted by Salawu, falsified signatures on critical documents, including the Offer of Credit Facility and the approving board resolution. The fraudulent loans were disbursed and funneled into companies controlled by Liu, subsequently laundered into Chinese accounts.

According to the petition to the Department of State Services (DSS), “The fraudulent actions of these individuals have not only jeopardized the financial stability of BN Ceramic Industry Limited and NB Ceramic Limited but have also posed a significant threat to the Nigerian economy”. This statement underscores the far-reaching impact of such fraudulent activities, which extend beyond individual companies to affect the broader economic landscape.

To detail the transactions as captured in the petition:

First Loan (N3 billion) – November 4, 2021: Liu and Salawu falsified signatures and pledged the assets of BN Ceramic Industry Limited and NB Ceramic Limited without authorization. The loan was disbursed, and N69.9 million was paid as a kickback to Salawu. The remaining funds were transferred to Liu’s controlled companies and laundered into Chinese accounts.

Second Loan (N6 billion) – August 30, 2022: Liu, using falsified documents, secured this loan under the pretext of financing a contract for the AKK Project. Again, the assets of the ceramic companies were used as collateral without proper authorization. The funds were diverted and laundered offshore.

Third Loan (N8 billion) – August 31, 2023: Liu secured this loan to allegedly finance an ethanol facility in Makurdi. The funds were disbursed to Wetech Industry Limited and subsequently laundered into Chinese accounts. The petition states that “Liu immediately transferred N6 billion to Pure Biotech Company Limited where the shared monies were converted into Chinese Yuan and transferred to their personal accounts”.

The petitions to the Department of State Services (DSS) and the Economic and Financial Crimes Commission (EFCC) by the victims are a desperate cry for justice and reform. It is imperative that the DSS and EFCC thoroughly investigate this case and bring the perpetrators to justice. Additionally, the Central Bank of Nigeria must view this as an opportunity to tighten regulations and enforce stringent oversight to prevent such occurrences in the future.

We must not allow our financial system to be exploited by corrupt insiders and foreign nationals. This case should serve as a wake-up call to overhaul our banking sector’s regulatory framework. It is crucial to hold those in positions of power accountable and ensure the sanctity of our financial institutions is preserved.

Nigeria’s economic future depends on our ability to safeguard our financial systems from fraud and corruption of this magnitude. We must demand transparency, integrity, and accountability from our banks and their officials. Neglecting these issues is a breach of the trust that millions of Nigerians place in these institutions every day.

This is not just a local issue but a national concern. As highlighted in the petition, “If such fraudulent activities are left unchecked, they could precipitate a financial crisis, undermining the trust and stability of the Nigerian banking system”. The authorities must act swiftly to restore faith in our financial institutions and ensure that such a scandal does not happen again.

By Fidelis Akumatu is a human rights activist and writes from Abuja.