Zenith Bank Plc and its Lokoja Branch Manager, Salawu Nairu, together with two Chinese nationals, Liu Yangxi and Ma Zhuang, have been accused of conspiring to defraud BN Ceramic Industry Limited and NB Ceramic Limited of approximately N17 billion.
This complex scheme involved obtaining loans secretly on behalf of the companies without the knowledge of their Nigerian directors and shareholders.
The fraudulent activities, which spanned from November 2021 to August 2023, involved falsifying signatures and presenting misleading documents to secure substantial loans from Zenith Bank
Liu Yangxi, who holds director position in the Ceramic firms, allegedly used these loans for personal gain, facilitated by Salawu Nasiru, who received over N100 million in kickbacks for his role.
Initial findings revealed that Mr Liu, aided by Mr Ma and Mr Salawu, fraudulently secured a N3 billion loan, pledging company assets without proper authorisation. The funds were misappropriated, with significant amounts laundered and transferred to personal accounts in China.
Subsequent investigations showed that an additional N8 billion loan was obtained through deceptive means, purportedly for a fictitious ethanol facility in Makurdi, Benue State
Further investigation revealed that Mr Liu, along with Mr Ma and Mr Salawu, falsified Zhang aide’s signature, a director and shareholder of the Ceramic companies, on loan documents and board resolutions.
The fraud extended to pledging all fixed and floating assets of BN Ceramic Industry Limited and NB Ceramics Limited as collateral without proper authorisation.
The loans were then funnelled into companies controlled by Mr Liu, including Wetech Industry Ltd, Pure Biotech Company Limited, and CBC Oil & Gas Services Ltd.
On August 31, 2023, Mr Liu secured an additional N8 billion loan from Zenith Bank through his shell company, Wetech Industry Limited, supposedly to finance an ethanol facility. The funds were again transferred to personal accounts without legitimate contracts.
Pure Biotech Company LImited, linked to Mr Liu, faced environmental violations, including discharging polluted water into River Benue and a fatal safety incident in April 2024. The company is also under investigation for evading taxes worth over N7 billion between 2022 and 2024.
The management of the defrauded Ceramic companies contracted the Managing Director of Zenith Bank on February 2, 2024, seeking an investigation
Petitions have been filed with the Economic and Financial Crimes Commission (EFCC) and the State Security Service (SSS), highlighting concerns over potential systemic fraud within the Nigerian banking sector and calling for stringent regulatory measures.
These petitions stress the severity of unchecked fraudulent activities, which pose a significant threat to the Nigerian economy.
According to a report on People Gazette, the representatives for the accused individuals and Zenith Bank have not responded to requests for comments.
The EFCC has confirmed ongoing investigations but has refrained from further comments.
