N4.2b ITF Fund: Keystone Bank, MD Land in Big Trouble

January 31, 2017
N4.2b ITF Fund: Keystone Bank, MD Land in Big Trouble

N4.2b ITF Fund: Keystone Bank, MD Land in Big Trouble

By Dipo Olowookere

This might not be the best of time for Keystone Bank and its Managing Director, Mr Philip Ikeazor, because he may have some explanations  to make to the Economic and Financial Crimes Commission (EFCC).

This is because the anti-graft agency has been urged to investigate an alleged transfer of N4.2 billion from Industrial Trust Fund’s (ITF) account domiciled in Keystone Bank.

This call was made on Monday by the House of Representatives.

It was gathered that a query dated December 2010 was issued by the office of the Auditor-General of the Federation claiming a total sum of N4.2 billion was illegally moved three times in November from ITF account to other accounts, all belonging to the same agency.

Vice Chairman of the House Committee on Public Accounts, Mr Ibrahim Baba, noted that the Office of the Auditor-General questioned the propriety of moving the money without remitting N23.5 million interest accruing from the transactions to the agency’s account.

It further noted that the query also sought to know who authorised the transactions and for what purpose it was done.

But responding to the query, the Director-General and Executive Chairman, ITF, Mr Joseph Ari, explained that the transactions were made without the authorization of the agency.

Mr Ari said that the bank’s response in May 2012 explained that the withdrawal from ITF’s remital control account was done in error.

He emphasised that Keystone’s position is that it was a wrong posting but was later corrected.

Mr Ari said, “However within the days the money was moved, ITF wrote Keystone Bank to remit the interest to the account accordingly but the bank didn’t reply.

“We reported the matter to the Central Bank of Nigeria (CBN) and the CBN advised that parties should sit down and discuss.

“However, we sat down with Keystone officials without finding a solution.”

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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