Tony Elumelu

For obstructing a probe into an alleged money laundering activity in the United States of America, the United Bank for Africa Plc is to forfeit $5.3m to the US government.

Before the merger, Standard Trust Bank under Tony Elumelu was foremost in money laundering for politicians in Nigeria. In 2002, the activities of the Bank was mirrored by the Nigeria’s House of Representatives committee on Banking but the out come never saw the light of day as management of the bank was said to have “reached out to powers that be.”

According to a report by the Bloomberg News on Friday, US prosecutors agreed not to file criminal charges against the bank following the readiness of UBA to pay $5.3m as a settlement fee as part of an agreement announced on Friday in New York by US Attorney, Mr. Michael Garcia.

Bloomberg quoted Garcia as saying that as the authorities were investigating whether fraud proceeds were laundered through the bank, “UBA intentionally created and then supplied to the government certain fake, backdated documents, which had the effect of substantially obstructing the government‘s investigation.‘‘

The investigation stemmed from an earlier probe of money laundering through an account at the bank‘s New York branch in the name of Zamora Nigeria Limited, which prosecutors said was used to route money from fraud victims to Nigeria.

In 2000, the US seized $5m from that account, Garcia said. That $5m is separate from the $5.3m UBA is now paying.

It was gathered that a New York-based grand jury later opened a second probe into the relationship between UBA and Zamora and demanded documents from UBA.

”UBA provided phony, backdated documents, suggesting that the bank and Zamora were separate entities,” Garcia said.

The documents given to prosecutors said an unnamed individual had resigned from UBA in 1998, when he was really on the payroll of both UBA and Zamora between 1998 and 2000, Garcia said.

According to the Bloomberg News, a lawyer at Hogan & Hartson, Mr. Ira Feinberg, who represented the bank, declined to comment.

”UBA said in April that profit for the six months ending March 31 more than doubled to N10.1bn ($78.9m) after lending and fees surged. In 2005, the bank merged with another Nigerian bank, then known as Standard Trust Bank Plc, and the merged entity, with a new board, retained the UBA name,” Garcia said.

Garcia said the bank cooperated in the investigation and that there had been no misconduct since a new management took over in 2005.

When contacted, on Saturday, the Head of Corporate Communications, UBA, Mr. Charles Aigbe said he was not aware of the development. Aigbe, who requested that a SMS should be sent to him to enable him get in touch with the bank‘s legal department, promised to get back.

He later sent an SMS requesting for more time to confirm the story.

His message reads: “I am still trying to confirm the story. Please hold action till tomorrow. I need some time please.”

He didn‘t get back to our correspondent as at press time on Saturday.

The Head of Corporate Affairs, Central Bank of Nigeria, Mr. Festus Odoko, also declined to speak.

When prodded further, Odoko said: ”If something happens out there, we need to have an official report of it. When something of this nature happens, ordinarily, we should ask our banking supervision people or the legal people. But this is 6pm on Saturday and I can‘t say anything for now.”

The spokesman for the Economic and Financial Crimes Commission, Mr. Osita Nwajah could not be reached on phone on Saturday night.