Zenith Bank Plc, alongside its Lokoja Branch Manager, Salawu Nasiru, and two Chinese nationals, Liu Yangxi and Ma Zhuang, have been accused of orchestrating a scheme to defraud BN Ceramic Industry Limited and NB Ceramic Limited of approximately N17 billion.
The elaborate scheme, which took place from November 2021 to August 2023, involved obtaining loans secretly on behalf of the companies without the knowledge of their Nigerian directors and shareholders. The fraudulent activities included falsifying signatures and presenting misleading documents to secure substantial loans from Zenith Bank.
Liu Yangxi, a director at the Ceramic firms, allegedly utilized these loans for personal gain, with Salawu Nasiru receiving over N100 million in kickbacks for his involvement. Initial findings revealed that Liu, with the help of Ma and Nasiru, fraudulently secured a N3 billion loan, pledging company assets without proper authorization. The misappropriated funds were laundered and transferred to personal accounts in China.
Further investigations uncovered an additional N8 billion loan obtained through deceptive means, purportedly for a fictitious ethanol facility in Makurdi, Benue State. It was found that Liu, Ma, and Nasiru falsified the signature of Zhang Aide, 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 authorization. The loans were then funneled into companies controlled by Liu, including Wetech Industry Ltd, Pure Biotech Company Limited, and CBC Oil & Gas Services Ltd.
On August 31, 2023, 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 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, report stated.
According to the report, the management of the defrauded Ceramic companies contacted 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), raising concerns about potential systemic fraud within the Nigerian banking sector and calling for stringent regulatory measures.
The report went further to say these petitions highlight the severity of unchecked fraudulent activities, which pose a significant threat to the Nigerian economy. According to a report on People Gazette, 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.
