Moriah Trust Limited and its principal, David Nwedu, have filed a formal petition to the Economic and Financial Crimes Commission (EFCC), accusing Ecobank Nigeria Plc of attempting to defraud them of $285,006 linked to an Advance Payment Guarantee (APG).
In its petition, the firm urged the anti-graft agency to investigate and prosecute those involved in the alleged fraudulent transactions.
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 filed by Umar, Gimba & Associates on behalf of Moriah Trust Limited.
It was addressed to the EFCC’s Executive Chairman and received on January 26, 2024.
The Allegations
The controversy stems from an Advance Payment Guarantee requested by Moriah Trust Limited during its work on the Abidjan-Lagos Transport Corridor project.
The contract, valued at $1,425,032.70, required Ecobank to issue an APG worth 20% of the contract sum, equivalent to $285,006.
According to the petition, Ecobank credited Moriah Trust’s domiciliary account with the APG amount.
Subsequently, the contract awarder, the International Development Association (IDA), transferred $214,996 to Ecobank on behalf of Moriah Trust to offset part of the APG, leaving a $70,000 advance already received by the firm.
This amount, the petitioner claims, was supposed to be “warehoused” by the bank until the APG was fully discharged.
However, in a twist, Moriah Trust alleged that when it returned the APG document as required on January 5, 2006, Ecobank credited its account not with the $214,996 balance but erroneously with $20,060,118.
The Aftermath
David Nwedu, the principal of Moriah Trust, claimed he immediately alerted Ecobank to the error.
The bank reportedly informed him that the credited amount represented the naira equivalent of the warehoused $214,996.
Soon after, Ecobank allegedly deactivated the domiciliary account without his knowledge or consent, leaving the erroneous amount as a credit balance.
Efforts by Moriah Trust to resolve the matter proved futile. Attempts to reactivate the account included deposits of $17,000 in 2008 and $3,000 in 2009, but Ecobank allegedly refused to reconcile or reactivate the account.
Impact on Business Operations
The dormant account and unresolved discrepancies have created significant challenges for Moriah Trust.
According to the petition, the IDA has repeatedly requested a project closure report, which Moriah Trust has been unable to provide due to its inability to access the funds in the Ecobank account.
This situation, the firm claimed, has caused embarrassment and damaged its reputation with the World Bank affiliate.
Demand for Investigation
The petition accused Ecobank of fraudulent practices, unauthorized account deactivation, and deliberate refusal to provide information on the APG funds.
It called on the EFCC to investigate the alleged illegal transactions and hold the bank and its officials accountable.
The solicitors argued that the bank’s actions amount to an attempt to defraud Moriah Trust of its legitimate funds and urged the EFCC to take swift action to resolve the matter and prevent further harm to their client.
As of the time of filing this report, Ecobank Nigeria Plc has yet to issue a public response to the allegations.
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