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The United Bank for Africa (UBA) is embroiled in a major scandal involving the theft of over ₦1.9 billion from a pension fund administrator’s account. The incident, which came to light only in late July 2020, exposes severe vulnerabilities in UBA’s security systems.
According to investigations, the funds were illicitly transferred from UBA’s Treasury account in five separate transactions between March 25 and June 5, 2020. The first four transactions exceeded ₦400 million each, while the final one in June involved over ₦200 million. The stolen amount originated from PAL Pensions Alliance, a pension fund administrator.
UBA’s security lapses became evident as the bank failed to detect the fraudulent activities until the International Response Team (IRT) alerted them. Further scrutiny revealed that three UBA Treasury staff members—Mr. Osita Omeje, Dirisu Sunday, and Nappy Ngbale Aiyegbusi—were implicated in authorizing these transactions. Despite the clear evidence of fraud, UBA’s management responded by blocking over 200 accounts of innocent customers, many of whom were vendors or professionals unknowingly involved with the suspects.
Compounding the issue, UBA Treasury staff failed to verify the authenticity of transaction instructions, as forged emails from the UBA Pension department were used. Although these emails were flagged as fraudulent, the transactions were still processed. Internal measures taken against the involved staff were reportedly lenient compared to the severe repercussions faced by UBA Pension employees.
The investigation into the case has also raised concerns about corruption within the police force. Officers, including DSP Barau Iliyasu and DSP William Buba, allegedly extorted over 100 innocent bank customers during the investigation. These customers were subjected to coercion and mistreatment, with some being denied access to legal representation.
Efforts to resolve the matter have been complicated by UBA’s refusal to forgive the suspects, despite their offer to surrender properties in exchange for leniency. UBA’s legal team has pursued multiple court actions in Abuja, with properties seized from the suspects sold at questionable prices.
The ongoing case underscores the need for stronger security measures within financial institutions and raises questions about legal and ethical practices in handling financial fraud.
