Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer – Newstrends
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Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer

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Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer

The Federal High Court in Abuja on Monday issued an interim freezing order against several accounts in Fair Money Microfinance Bank Ltd, Palm Pay Limited, and Opay Digital Services Limited, directing the organizations to reverse N139,630,000 credited to some of their customers and account holders as a result of a “system glitch” at TAJ Bank Ltd.

The order was made following a motion ex parte filed by Taj Bank Ltd and six of its customers on July 23, 2024, in suit number FHC/ABJ/CS/1018/2024 against the three organizations.

Nigerian Interbank Settlement System Plc was designated as the fourth respondent.

In their originating summons and motion ex parte, TAJ Bank’s legal team urged the court to hold that based on the Central Bank of Nigeria’s Regulatory Framework for Banking Verification (BVN) Operations and Watchlist for the Nigerian Banking Industry, October 2017, any money that illegally enters the accounts linked to the Bank Verification Numbers (BVN) of any institution’s account holders through suspicious debits and credits should be immediately returned to where the money was originally domiciled.

In his affidavit in support, Unit Head of the Investigation and Fraud Management Unit, Taj Bank Limited, Muhideen Olujinmi, stated that one of the goals of the aforementioned Central Bank of Nigeria Regulations is to, among other things, ensure the effectiveness of Know Your Customer (KYC) principles and the promotion of a reliable payment system, as well as the reduction of fraud incidences and the safeguarding of depositors’ funds to boost public confidence in the banking industry.

According to him, following a system glitch on Taj Bank’s server, certain individuals illegally initiated multiple successful debit transactions and withdrew and transferred funds from the 2nd to 7th Plaintiffs’ accounts into several accounts held by the 1st, 2nd, and 3rd Respondents.

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He argued that the cash had been unlawfully transferred into multiple accounts held by the first, second, and third respondents.

He stated further, “That certain individuals took advantage of this glitch to carry out several transactions exposing TAJ Bank and its customers to a humongous liability to the tune of N139,630,000.00 received in several accounts domiciled with FairMoney, Opay, and PalmPay.

“That upon realizing this glitch, an immediate complaint was made to the 1st to 4th Respondents, and the said Respondents placed a post-no-debit instruction (debit freeze) on the subject accounts to avoid further dissipation of the Plaintiffs’ money.”

He explained that if all of the accounts listed in its exhibits belonging to the perpetrators of the alleged fraud are not urgently blocked or placed on no debit restriction and the amount unlawfully obtained is reversed, they will continue on a spending spree and further dissipation of funds belonging to TAJ Bank customers.

He noted that, in accordance with relevant financial legislation, financial platforms have the authority to block, freeze, and impose a post-no-debit on all of the account numbers specified in order to protect and secure depositors’ funds.

“The Plaintiffs have been greatly affected by the resultant effect of the system glitch, and unless this application is granted, the Plaintiffs will be further subjected to untoward hardship and dire financial loss,” he added.

TAJ Bank subsequently asked the court to order FairMoney, Opay, and PalmPay to reverse and refund the sum of N139,630,000.00 wrongfully debited from six of its customers’ accounts due to its system glitch, adding that they are wrongful and illicit debits transferred into the 1st-3rd Defendants’ customers’ accounts.

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In its motion ex parte, TAJ Bank’s legal team sought an order of interim mareva injunction (freezing order) mandating the 1st, 2nd, and 3rd Respondents to comply with the CBN’s guidelines by restricting and reversing the sum illegally received and transferred from the account of its customers to the accounts of the identified beneficiaries respectively (following the system glitch in the 1st Plaintiff/Applicant’s server), pending the hearing and determination of the substantive suit.

On July 26, 2024, Justice Peter Lifu granted TAJ Bank’s interim request, indicating that the freezing order would remain in effect while the application was heard and decided.

As requested by TAJ, the judge further ordered the 1st, 2nd, and 3rd Respondents to disclose under oath to the Court the sums in the credit of the specified account holders of their institution within 7 days of the order’s service.

The court also ordered TAJ Bank to enter into a fresh undertaking to protect or insure FairMoney, Opay, and PalmPay against any loss in the event of any emerging facts as to the inappropriateness of the interim orders granted.

The court then adjourned to August 12, 2024, for a hearing.

FairMoney, Opay, and PalmPay did not have legal representation in court at the hearing on Monday.

TAJ Bank’s lawyer, Rilwan Idris, told the judge that in compliance with his order, his clients have filed an affidavit to insure the respondents from any damage.

That affidavit was filed on July 29, 2024, and I can confirm that all of the respondents have received both the originating processes and the orders,” he said.

Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer

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We destroyed Lakurawa logistics base in Sokoto during airstrike – Military

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Director, Defence Media Operations, Maj.-Gen. Edward Buba

We destroyed Lakurawa logistics base in Sokoto during airstrike – Military

The military high command on Friday said it has destroyed logistics base of the terrorists’ group known as Lakurawa, disturbing peace of Sokoto communities when it rained airstrikes on them on Christmas day.

It specifically clarified that the deaths of 10 villagers in Sokoto State were caused by the secondary explosion that arose when the airstrikes bombarded the logistics base of the group.

The Director, Defence Media Operations, Edward Buba, while addressing journalists at Defence Headquarters, maintained that the airstrikes conducted by the Nigerian Air Force hit the primary target.

He explained that the airstrike was a precision-guided operation targeting the terrorist hideout in the area.

He maintained that the fatalities resulted from the secondary explosion triggered by the destruction of the terrorists’ logistics base.

“The airstrike indeed hit the logistics base of the terrorists, which led to secondary explosions. It was these explosions that caused the casualties reported earlier,” Buba stated.

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He further explained that the terrorists’ logistics base housed dangerous materials, including hand cartridges and explosives, which detonated when struck by the air force’s precision munitions.

“When I talk of the logistics base, I’m referring to hand cartridges and poles that were kept there. Naturally, when the munition hits, there will be a secondary explosion arising from that, which will generate other things flying in the air. That led to the death of about 10 persons that were reported. The 10 persons were not hit directly by the airstrikes,” Buba said.

He added that intelligence; surveillance, reconnaissance, and human intelligence were carried out over an extended period before the operation was conducted. He also said the earlier date for the operation had been shifted to prevent human casualties.

Buba said the ground forces confirmed the destruction of the terrorists’ key infrastructure and the neutralisation of several combatants during the operation, adding that survivors from the group fled the area, leveraging their familiarity with the terrain.

Also, troops of 1 Brigade in Sector 2 Joint Task Force North West, Operation Fansan Yamma, have neutralised several terrorists, including a notorious kingpin known as Alhaji Ma’oli.

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The operation took place in Mai Sheka village, near Kunchin Kalgo town, which is one of the local communities that had suffered under Ma’oli’s reign of terror.

Ma’oli is renowned for always imposing illegal levies on residents of Unguwan Rogo, Mai Sheka, Magazawa, and other surrounding areas of Bilbis in Tsafe LGA of Zamfara State.

The neutralisation of Ma’oli has brought relief and excitement to locals in Bilbis general area.

In a statement, Colonel Abubakar Abdullahi, Coordinator Joint Media Coordination Centre, Operation Fansan Yamma, said the operation which led to the killing of the terrorist was initiated in response to intelligence report of terrorists on motorcycles operating on Bilbis axis of Bilbis District, Tsafe LGA in Zamfara State.

“Swift response by troops of Operation Fansan Yamma not only thwarted the terrorists’ plan to attack the locals but also reinforced the commitment to securing the area from further acts of violence.”

 

We destroyed Lakurawa logistics base in Sokoto during airstrike – Military

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INEC to destroy six million PVCs, parties kick

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Permanent Voter Cards (PVCs)

INEC to destroy six million PVCs, parties kick

Political parties in Nigeria have kicked against the plans by the Independent National Electoral Commission (INEC) to destroy uncollected Permanent Voter Cards (PVCs).

Chronicle NG reports that INEC is contemplating a policy to withdraw and destroy Permanent Voter Cards that remain uncollected for a decade.

This recommendation was among 208 proposals arising from the commission’s review of the 2023 general elections.

The decision resulted from the recurrent issue of unclaimed PVCs, with over six million cards still uncollected as of the 2023 elections, including many issued as long back as 2015.

Stakeholders in the post-election assessment recommended that INEC resolve the backlog of uncollected PVCs by instituting a policy to withdraw PVCs that stay uncollected for extended periods, starting with cards issued in 2015.

The rationale is that these cards are unlikely to be used, and their retention clogs the voter management system.

Reacting to the plans to destroy the PVCs, the National Legal Adviser of the Labour Party, Kehinde Edun, believed that the initiative was in order, stressing that there was a need to declutter the voters register, especially if it is confirmed that many of those registered have died.

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He said, “I am sure most of those uncollected PVCs must have been as a result of irregularities in the process of registration and all that. If truly people register to vote and register as eligible electorate, they must have collected over a long period, after being given enough time.

“But I believe no system is perfect. So I think destroying them may be in order. If people have not collected over a long period, there is a likelihood those lapses were the result of some irregularities in the process of registration.”

However, the Peoples Democratic Party expressed worry that destroying uncollected PVCs could be another strategy by INEC to distract Nigerians.

Timothy Osadolor, PDP Deputy National Youth Leader, mentioned that INEC had given Nigerians enough grounds to be suspicious.

He claimed that individuals refused to acquire PVCs because they had lost faith in INEC’s ability to count their votes during elections.

Osadolor said, “How do you contemplate destroying cards produced with billions of taxpayers’ money because INEC has failed the credibility and integrity test that has made millions of Nigerians lose faith in the commission’s ability to organise free, fair, and credible elections?

“I urge INEC to, as a matter of immediate action, begin an image laundering and rebranding campaign to convince Nigerians and stakeholders that the commission is ready to be truly independent in spelling, actions, and character.”

In the same vein, the New Nigeria People’s Party (NNPP) advised INEC to reconsider the plan to destroy PVCs.

Ladipo Johnson, the National Publicity Secretary of the NNPP, said destroying over six million voter cards would amount to sheer waste of money.

He said, “If people register and haven’t come to collect over a long period of time unless they know those people have passed on, I think the cards should not be destroyed as long as they are in safekeeping.

“If you destroy about six million PVCs, and all of a sudden, some of the owners show up and want to vote, it will cost God-knows-how-much to register them again. It’s a waste of money.”

INEC to destroy six million PVCs, parties kick

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SANs back INEC on destruction of uncollected PVCs

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Permanent Voter Cards (PVCs)

SANs back INEC on destruction of uncollected PVCs

Some Senior Advocates of Nigeria (SAN) have backed the intended withdrawal and destruction of uncollected Permanent Voter Cards (PVCs) by the Independent National Electoral Commission (INEC).

Chronicle NG reports that INEC is contemplating a policy to withdraw and destroy Permanent Voter Cards that remain uncollected for a decade.

This recommendation was among 208 proposals arising from the commission’s review of the 2023 general elections.

The decision resulted from the recurrent issue of unclaimed PVCs, with over six million cards still uncollected as of the 2023 elections, including many issued as long back as 2015.

Prof. Itse Sagay (SAN), the former chairman of the Presidential Advisory Committee Against Corruption, stated that some of the uncollected PVCs were most likely the result of double registration.

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“They (uncollected PVCs) are taking space. My suspicion is that the owners don’t exist. It is double fraudulent registration by a lot of people.

“Just as I am sure that we are not up to 200 million, neither do I believe that we are up to 90 million registered voters when only 20 percent of that is always voting.

“There is a lot of fake information and fake facts in this country, and I’m sure this is part of it. So, let them destroy the uncollected PVCs,” he said.

Sharing the same sentiment, another SAN, Sam Erugo, said, “The PVCs have been uncollected over time, so I don’t see anything wrong in them destroying them because not collecting them means something is definitely wrong with the owners.

“Either they are dead or they are duplicates.  Now, that brings the question of whether eligible voters have voter cards or whether that will impede their right to vote or not.

“That is a different question altogether, but if they have uncollected voter cards, of course, they have a right to destroy them because that will help stop people from using them to rig elections.

“Given that they are uncollected, they are useless already, and money has been wasted already.”

 

SANs back INEC on destruction of uncollected PVCs

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