Court Awards N225 Million Against Sterling Bank Over Fraud

The High Court in Enugu State has awarded the sum of N225 million as damages to Ohha Microfinance Bank Limited, Enugu, against Sterling Bank Plc. Information Guide Nigeria

According to  NEWS EXPRESS, the amount was awarded on Wednesday by the presiding judge of the High Court, Justice Chinyere Ani.

BUSINESS HALLMARK reports that the commercial bank’s manager at its Market Road, Enugu branch, Mr. Oliver Anidiobi Chukwuka, defrauded Ohha Microfinance Bank of the sum of N219m by issuing Ohha Microfinance Bank fake “Fixed Deposit Certificates”.

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According to BUSINESS HALLMARK, Oliver Chukwuka stole and converted to personal use the sum of N219m depositors’ funds which Ohha Microfinance Bank Limited kept in a fixed deposit account with Sterling Bank Plc, its corresponding bank.

Reports state that the bank manager has long been remanded in prison custody for fraud.

The plaintiff, Ohha Microfinance Bank, had through its’ lawyer Olu Omotayo Esq. filed a suit against Sterling Bank Plc on 3rd October 2019, in Suit No. E/857/2019, OHHA MICROFINANCE BANK V. STERLING BANK PLC, and claimed against the defendant N600,000,000.00 (Six Hundred Million Naira) representing damages for breach of contract. N300,000,000.00, of which represents N138,900, 838.89 for the first fixed deposit and also the accumulated interest thereon and also N80,134,062.61, for the second fixed deposit and also the accumulated interest on it.

The defendant in the case, Sterling Bank Plc argued through its lawyer O.J. Uchenna Esq. that it was not bound by the acts of Oliver Anidiobi Chukwuka, though its branch manager, had denied having any of the fixed deposits of the plaintiff on its records, adding that the branch manager lacked authority to act for it in that regard.

After a one-hour judgement delivered by Hon. Chinyere Justice Ani, the court agreed with the submission of Olu Omotayo Esq. that the fixed deposit certificates given to Ohha Microfinance Bank by the defendant were authentic.

The court stated that this is because Oliver Anidiobi Chukwuka was the manager of the defendants’ Market Road Branch at the time and his act as an agent of Sterling Bank Plc is binding on the bank.

According to the Court, in the statement of Oliver Anidiobi Chukwuka to the Economic and Financial Crimes Commission (EFCC) which was admitted in evidence. In it, he admitted collecting the sum of N219m from Ohha Microfinance Bank, which he diverted to personal use and issued certificates he forged to the microfinance bank.

BUSINESS HALLMARK reports that the court held that Oliver Anidiobi Chukwuka, the bank manager of Sterling Bank at that material time acted on behalf of the defendant in the course of normal transactions of the bank.

The court stated that it should be considered is whether Sterling Bank as the principal is liable for the fraudulent act of the agent (Oliver Anidiobi Chukwuka).

The court held that Oliver Anidiobi Chukwuka a branch manager of the bank has full authority to deal with customers and that the transaction is lawful and that he acted within the course of his work and the plaintiff trusted him and relied on him as the bank manager of the defendant. Jamb Result

“There will be chaos in the system if customers cannot rely on representation of a bank manager in the course of banking transactions”.

(BUSINESS HALLMARK)

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