Police probe Zenith Bank in Abuja over alleged dividend fraud

The Nigeria Police Force in Abuja has launched an investigation into Zenith Bank Plc, following serious allegations by Aquitane Oil and Gas Limited.

The oil firm has accused the bank of account falsification and withholding over N1.4 billion in share dividends belonging to two of its affiliate companies.

According to reports from Premium Times, Aquitane Oil alleged that Zenith Bank manipulated account statements to mask unpaid dividends on shares held by Southern Grace Investment Ltd and Globular Trading Investment Services Ltd, consisting of 10,775,299 and 17,425,300 units, respectively. These shares were acquired during Zenith Bank’s 2008 Initial Public Offering (IPO) managed by Veritas Registrars Ltd.

The oil company claimed that since acquiring the shares in 2008, the subsidiaries had not received any dividend payments. In a formal petition submitted to the Inspector-General of Police on October 11, 2024, through Lukman O. Fagbemi & Co, Aquitane Oil urged a comprehensive investigation into Zenith Bank’s alleged “concealment of illegalities.”

The Force Criminal Investigations Department (FCID) has questioned Zenith Bank’s representatives from the oil and gas and legal departments regarding the allegations. Although the bank officials were not detained, further interviews are anticipated with other key personnel, including the chief compliance officer and the account manager.

Aquitane Oil presented evidence that included contradictory bank statements. The firm stated that a statement from August 2020 confirmed no dividend deposits in their Zenith Bank account and showed a positive balance. However, a later statement from February 2021 indicated dividend payments and a significant debit balance, which the firm believes to be fabricated.

Zenith Bank’s spokesperson, when contacted, expressed surprise at the inquiry and claimed ignorance of the situation, while Superintendent Anota Oluseye, the investigating officer, declined to comment due to the ongoing investigation.

This case underscores serious accusations of financial malpractice, and the outcome of the investigation could have significant implications for the bank and affected stakeholders.