Impersonation: Zenith Bank, China nationals to face EFCC, DSS over N17bn fraud

By Ezurike Ugochukwu

The recent revelation of fraud to the tune of N17 billion involving the Lokoja Branch Manager of Zenith Bank Plc and his accomplices, two China nationals has no doubt corroborated the recent claim of the Economic and Financial Crimes Commission(EFCC) that about 70 per cent of financial crimes in Nigeria are traced to Banking Sector.

Map of Lokoja

The Lokoja Manager of the bank, Salawu Nasiru, and the two Chinese- Liu Yangxi and Ma Zhuang, conspired to defraud two Nigerian ceramic companies of N17 billion at different occasions.
In the words of the petitioners to EFCC and DSS, this magnitude of fraud If left unchecked could potentially precipitate to financial crisis.
The syndicated financial crime which spanned from November 2021 to August 2023, involved falsifying of signatures and presenting misleading documents to secure substantial loans from Zenith Bank on behalf of the companies without the knowledge of the Nigerian companies’ directors and shareholders.
The ceramic companies used in the fraudulent act: BN Ceramic Industry Limited and NB Ceramic Limited were tacitly used in obtaining loan without the consent of their directors.
Liu Yangxi, unduly used his position as a director in the Ceramic firms, to obtain these loans for personal gain, being facilitated by Salawu Nasiru, who in turn received kickback of over N100 million for his role in the fraud.
The fraudulent enlisting of the Nigerian ceramic company into the loan scam began with Mr Liu, securing the initial N3 billion from Zenith Bank without proper consultation or approval from the director, Mr Qide, management, directors, and shareholders of BN Ceramic Ltd which was facilitated by Messrs Ma and Nasiru.
Report has it that the money was 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
It was also revealed that Mr Liu, along with Mr Ma and Mr Nasiru, 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 authorization.
The loans were then moved 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.

On getting wind of these frauds tired to their names, management of the 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.
Report esrlier on People Gazette, stated that representatives for the accused individuals and Zenith Bank failed to responded to requests for comments on these issues
Even as it is stated that so far, Zenith Bank or its leadership has not been implicated in this fraud apart from the Lokija Manager.
The EFCC has confirmed ongoing investigations but has refrained from further
The EFCC Chairman Ola Olukoyede, at the 2024 Annual Retreat/Conference of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) held in Abuja recently said, “The banking sector is increasingly becoming a cesspool of fraudulent activities…”