Fraud: 29 Banks Lose N0.4bn in 3 Months
By Ayodele Aminu
No fewer than 82 bank workers lost their jobs between March and May this year for direct involvement or complicity in fraud cases totalling N921 billion of which N431.9 million was eventually successful.
The monthly fraud reports of the 29 banks submitted to the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) exclusively obtained by THISDAY showed that 63 out of the sacked employees were male bank workers while 19 were female employees.
A breakdown of the losses recorded by the 29 banks within the period revealed that N138 million was stolen from their vaults in March, N133 million in April while N160.9 million was carted away in May this year.
The report further indicated that most of the big banks (old generation banks) as usual, because of their size, were more vulnerable to fraud. One of the four old generation banks topped the list with a total loss of N81.88 million (N53.2 million in March 2003 and N28.86 million in April 2004), while a northern fairly large bank trailed with a loss of N52.34 million during the month of May alone.
Next came a former government -owned bank that was privatised. It lost N52.34 million in May 2004, while one of the big four suffered a total loss of 50.3 million (N32.3 million in March and N18 million in April.
Another bank about to be quoted on the Nigerian Stock Exchange (NSE) lost N28.43 million to armed robbers in May, while five other quoted banks lost N13.3 million, N8.8 million, N7.16 million, N6.14 million and N3.5 million within the review periods.
The presentation of forged and stolen cheques and vouchers accounted for over 70 per cent of the total value of the frauds. Other fraudulent practices used by bank staff and fraudsters include cash suppression; non-provision of funds for forex bid; fraudulent sale of shares; unauthorized payments; fraudulent postings; cash defalcation; cheques' conversion and diversion.
Others include fraudulent withdrawals; armed robbery attacks; theft of cash; non-credit of customers' accounts; lodgment of stolen dividend warrants; delayed remittance of Value Added Tax (VAT) proceeds to the CBN and taking customers' fund for personal use.
The six largest banks in the country accounted for over 60 per cent of the total value of fraud.
One of the big banks suffered a loss of N38.8 million at its Ilorin branch. The fraud that is still under investigation was perpetrated through uncredited cash lodgments totaling N43.158 million into Oando Plc remittance account No. 3161020000082 at Muritala Mohammed way, Ilorin branch of the said bank between February and December last year. The same bank in same month lost another N6.5 million through fraudulent debiting of Savings General Ledger and diversion of its money transfer remittance (totaling N7.25 million) and crediting of same to the savings account of one Mr. John O. Osimiri (A/C No. 743210504) opened on 16/6/2002 for that purpose by a computer operator of the bank and subsequent withdrawal of N5.58 million from the account by Mr. Osimiri (a customer and an accomplice). Investigation is still in progress.
Another quoted bank, formerly state-owned that changed its name and whose Managing Director/Chief Executive preaches the gospel lost N12.09 million in May this year through the connivance of two of its staff to convert Customs Duties totalling N12.09 million to various beneficiaries.
Over the years, both the volume and value of fraud and forgeries in banks have been growing. The apex bank, in its 2003 report, stated that there were 1,036 reported cases of fraud and forgery involving N3.6 billion, US$3.5 million, DM120 and Euro 895.0. Out of them, 360 cases of fraud were successfully perpetrated and resulted in losses to banks amounting to N1.5 billion, US$217,822 and Euro 895.0.
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