Sterling Bank Limited has been indicted as the Independent Corrupt Practices and Other Related Offences Commission (ICPC) seeks the temporary forfeiture of N1,373,180,510.07 Kaduna State fund allegedly hidden in the bank.
The fund is believed to have been diverted from the Kaduna Light Rail Project’s budget into the account of a private company.
Although the project was funded by the government of former Governor Nasir el-Rufai, it was never executed.
The commission reported tracing N1.373 billion to an account belonging to Indo Kaduna Marts JV Nig. Ltd.
The anti-graft agency stated that the money was “allegedly diverted into a private account.”
While a source confirmed a Joint Venture agreement between the Kaduna State Government and the company in 2016, the ICPC revealed that N11,099,579,455.14 was deposited into the company’s account between December 23, 2016, and January 17, 2017, before the company was registered with the Corporate Affairs Commission (CAC).
According to ICPC findings, the company was registered with the CAC on the 10th of May, 2017.
ICPC made the revelations in a motion ex-parte before the Federal High Court, Kaduna Division on Friday February 14th, 2025.
No date has been fixed for the hearing of the motion bordering on the activities of Kaduna State Government during the Nasir el-Rufai administration.
The ICPC wanted the forfeited cash which is currently in the custody of the Central Bank of Nigeria (CBN), to be returned to the Kaduna State Government for the use of the people of the state.
The motion was brought pursuant to section 17(1), (2), (3), & (4) of the Advance Fee Fraud and other fraud related offences Act 2006, Section 48 (1), ), (2), & (3) (a) & (b) of the Corrupt Practices and Other Related Offences Act, 2000, Sections 7, 8, 9, 10 11 and 12 of the proceeds of crime: (Recovery and Management) Act, 2022 and Section 6 (6) (a) of the 1999 Constitution of the Federal Republic of Nigeria (As amended)
The ICPC asked for the following reliefs:
An order of this Honourable Court temporarily forfeiting the sum of N1,373,180,510.07 (One Billion, Three Hundred and Seventy-Three Million, One Hundred and Eighty Thousand, Five Hundred and Ten Naira, Seven Kobo) being an amount allegedly diverted into a private account to wit: Indo Kaduna Marts JV Nig Ltd, and was recovered into the commission’s recovery account domiciled with the Central Bank of Nigeria in the course of an ongoing investigation activity against officials of Kaduna State Government between 2015 and 2023.
An order of this Honourable Court directing the Applicant to publish a notice in any two (2) national newspapers calling for persons whether human, juristic of artificial having interest in the moveable property to show cause in court why the aforesaid moveable property should not be permanently forfeited to the Federal Government of Nigeria. And for such further or other orders as the Honourable Court may deem fit to make in the circumstances.
In an affidavit in support through a Litigation Officer, Idris Abubakar, ICPC said it “received a petition against officials of Kaduna State Government under the administration of Mallam Nasir El-Rufai. A copy of the petition is attached and marked as Exhibit ICPC 1.
“The commission, during preliminary investigation, retrieved relevant documents from Sterling Bank Limited relating to financial transactions involving Kaduna State Government.
“The commission’s investigators analysed the documents retrieved from Sterling Bank Limited and the analysis revealed the following:
“The Kaduna State Government had a purported joint venture agreement with the Respondent signed on 18th October, 2016. A copy of the joint venture agreement is hereby attached and marked as Exhibit ICPC 2.
“The joint venture agreement was for the construction of light rail service for the State Government.
“Thereafter, Respondent opened a bank account with Sterling Bank Limited on the 15th day of December, 2016.
“Prior to the opening of the bank account for Indo Kaduna Mrts JV Nigeria Limited, the company was not incorporated with the Corporate Affairs Commission.
“That following the opening of the account with the Sterling Bank Limited, former Governor of Kaduna State, Mallam Nasir Ahmad El-Rufai, approved the lodgment of a total sum of N11,099,579,455.14 into Indo Kaduna Mrts JV Nigeria Limited account from various accounts of Kaduna State Government in different tranches into the Respondent’s account.
“Kaduna State Government began funding the account of Indo Kaduna Marts JV. Nigeria Limited with an initial deposit of N890,300,000 (Eight Hundred and Ninety Million, Three Hundred Thousand Naira) from the Kaduna State Single Treasury Account on the 23” day of December, 2016.
“On the 10th day of January, 2017, the sum of N2,300,000,000.00 was received by Indo Kaduna Mris JV Nigeria Limited from the office of the Accountant General Kaduna State.
“Subsequent deposits of N3,000,000,000.00 and N4,909,279,455.14 were made into the said account from Kaduna State through the office of the Accountant General of the state on the 17th day of January, 2017
“That the N11,099,579,455.14 lodged into the Respondent’s account was dissipated before the formal registration of Indo Kaduna Marts JV Nigeria Limited with the Corporate Affairs Commission.
“The total sum received into Indo Kaduna Mrts JV Nigeria Limited from Kaduna State Government accounts was N11,099,579,455.14. A copy of the account statement of Indo Kaduna Marts JV Nigeria Limited is hereby attached and marked as Exhibit ICPC 3.
“That the Respondent (Indo Kaduna Mrts JV Nigeria Limited) was formally registered with the Corporate Affairs Commission on the 10th day of May, 2017. A copy of the incorporation documents is attached and marked as Exhibit [CPC 4.
“The N11,099,579,455.14 was meant for the provision of light rail services for the use of the people of Kaduna and Nigerians in general.
“There was no such project executed by the Kaduna State Government as revealed in the course of investigation.”
ICPC said its investigation revealed further that:
▪Among the signatories to the account of the alleged unregistered company were officials of Kaduna State Government and the Indian representative of Skipper Nigeria Limited.
▪Sometime in January, 2017, the Group President of Skipper Nigeria Limited, one Jitender Sachdeva, (vide a letter dated the 17* day of January, 2017, instructed Sterling Bank Limited to fix the N11,099,579,455.14 in an interest-yielding account. A copy of the letter is hereby attached and marked as Exhibit ICPC 5.
▪The interest on the fixed deposit amounted to the sum of N326,823,818,68.
▪Investigation also revealed that the interest on the fixed deposit was diverted to different accounts of Skipper Nigeria Limited domiciled with Sterling Bank Nigeria Limited. Copies of the said account statements are hereby attached and marked as Exhibits ICPC 6 & 6A respectively.
▪ On the 10th day of July, 2019, N10 billion was returned back to Kaduna State Government from Indo Kaduna Marts JV Nigeria Limited account with Sterling Bank Limited.
▪The balance of N1,046,300,000.00 was diverted in two (2) tranches of N890,300,000.00 and N156,000,000.00 to the account of GTA Engineering Nigeria Limited domiciled with Sterling Bank Limited and Access Bank Plc. Copies of the account statements of GTA Engineering Nigeria Limited of both banks are hereby attached and marked as Exhibits ICPC 7 & 7A respectively.
▪Investigation further revealed that GTA Engineering Nigeria Limited is a subsidiary of Skipper Nigeria Limited.
▪From investigation activities, no official of Kaduna State Government was a signatory to the bank accounts of Skipper Nigeria Limited and GTA Engineering Nigeria Limited except Indo Kaduna Marts JV Nigeria Limited.
▪ The alleged N1,046,300,000.00 transferred into accounts of GTA Engineering was tagged “payment for feasibility study” but investigation revealed that no such feasibility study was carried out.
▪The commission has recovered both the N1,046,300,000.00 transferred to GTA Engineering Limited accounts of Sterling Bank Limited and Access Bank Plc for the alleged feasibility study and the interest on the fixed deposit of the N11,099,579,455.14 from Sterling Bank Limited.
▪I know as a fact that the grant of this application will not affect the rights of any interested person to own property as guaranteed under the Constitution of the Federal Republic of Nigeria, 1999.
▪ The diversion of the alleged sum has deprived the people of Kaduna State the benefits of rail transportation system the money was meant for.
▪ This application seeks the Honourable Court’s indulgence to repatriate the recovered sums back to Kaduna State Government to enable the Government channel the money to more people-oriented projects.
(C) The Witness
