This is pending the hearing and determination of the Motion on Notice for interlocutory injunction.

A Federal High Court in Lagos has restrained the House of Representatives and the Chairman of the House of Representatives Committee on Public Petitions, Mike Etaba further inviting and investigating Sterling Bank Limited and others.

This is pending the hearing and determination of the Motion on Notice for interlocutory injunction.

The 1st to 6th Plaintiffs are Sterling Bank Limited, Sterling Financial Holdings Company Plc, Yemi Odubiyi, Abubakar Suleiman, Lekan Olakunle and Dele Faseemo respectively.

Meanwhile, the 1st to 5th Defendants in the suit numbered FHC/L/CS/158/25 are the House of Representatives; Hon. Michael Etaba (Chairman, House Committee On Public Petitions); Dr. Innocent Brendan Usoro; Miden Systems Limited and The Inspector General of Police.

The Plaintiffs through their lawyers Femi Falana (SAN); Funmi Falana (SAN) and Taiwo E. Olawanle, all of Falana & Falana’s Chambers had filed a motion of ex parte asking the court for an “order of interim injunction restraining the 1st and 2nd Defendants, whether by themselves, agents, servants, privies and/or anybody from further inviting and investigating the Plaintiffs pending the hearing and determination of the Motion on Notice for interlocutory injunction”.

A lawyer involved in the case told SaharaReporters on Tuesday that the court granted the prayer of the Plaintiffs to restrain the House of Representatives and Etaba on the case.

The motion of ex parte filed by the Plaintiffs read, “That this application seeks to prevent the 1st, 2nd and 5th Defendants/Respondents from further action on the subject matter of this suit which has been determined by the Court pending the determination of the substantive suit.

“The principles of separation of powers as enshrined in the 1999 Constitution clearly delineates the powers of the judiciary, legislature and executive.”

An affidavit deposed to by one Sunday Adegoke, Head of Recovery Litigation of the 1st and 2nd Plaintiffs (Sterling Bank Limited and Sterling Financial Holdings Company Plc), in support of the motion, argued that “the 1st and 2nd Defendants lack the powers to summon or invite private persons and representatives of private corporate bodies to appear before them or any of their committees in the course of conducting any investigation”.

Adegoke further averred: “Upon a banker-customer relationship between the 1st Plaintiff and the 3rd and 4th Defendants in 2009, the 3rd Defendant availed a Vessel Lease Facility for US$17,079,000.00 (Seventeen Million, Seventy-Nine Thousand United States Dollars) (hereinafter "the Facility") with a tenor of 48 months (including a 6-month moratorium on principal and interest repayments).

“The 3rd and 4th Defendants’ failure to defray their debt obligations resulted in the facility restructuring for another five (5) years tenor extending from 2017 to 2022.

“Unknown to the Plaintiffs, the facilities availed by the 3rd and 4th Defendants were diverted, and expended on the 3rd and 4th Defendants’ wants. At the same time, the purpose for which the fund was disbursed was dilapidated.

“While the 1st Plaintiff was exploring all remedial options, it was also discovered, upon an impromptu inspection of the NBTC Yard, Warri and Forcados Terminal in Delta State on October 23 and 24, 2023 respectively, that the majority of the Company's vessels duly financed by the 1st Plaintiff and used as security for the facility were in disrepair on account of the 3rd Defendant’s intentional and fraudulent cannibalization of these assets.

“The 1st Plaintiff realized that the additional funds disbursed to the 3rd Defendant to revitalize the 4th Defendant’s operations were obtained by them under a false pretense and was fraudulently diverted for personal needs by the 3rd Respondent.

“The 3rd and 4th Defendants’ failure to meet their loan repayment obligations resulted in the commencement of a recovery action against the duo at the Federal High Court of Lagos in Suit No.: FHC/L/CS/946/2021 Coram Hon. Justice Allagoa wherein Mareva injunctions were obtained against the 3rd and 4th Defendants.”

According to him, the suit resulted in a consent judgement.

He said in the consent judgment, “the 3rd and 4th Defendants voluntarily admitted liability to the 1st Plaintiff to the tune of USD31,335,636.88 (Thirty-One Million, Three Hundred and Thirty-Five Thousand, Six Hundred and Thirty-Six Dollars, Eighty-Eight Cent)”.

In January, the Nigerian police indicted Sterling Bank over allegations of money laundering, fraudulent deductions, and other financial crimes committed by its employees.

This indictment follows a petition filed by Maiden Systems Ltd against Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum, accusing them of mismanagement, fraudulent debits, and misappropriation of funds from its account with Sterling Bank.

The police said their investigation uncovered discrepancies in the bank's account statements, including the non-issuance of statements, fraudulent debits, and misappropriation of funds.

The police also reported uncovering a Debt Service Repayment Account (DSRA) with debits amounting to $28.3 million, which the bank failed to explain.

They recommended that Sterling Bank be held responsible for financial mismanagement, fraudulent debits, misappropriation of funds, and potential money laundering.

Chairman Etaba of the House of Representatives Committee on Public Petition assured both parties that the report would be thoroughly reviewed and justice would be delivered.

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