Sterling Bank Accuses Miden Systems of Court Ruling Violations, Petitions IGPI
Sterling Bank Accuses Miden Systems of Court Ruling Violations, Petitions IGP
Sterling Bank Limited has taken legal action against Miden Systems Limited and its director, Dr. Brendan Usoro, over allegations of harassment and attempts to bypass a court-mandated debt settlement. The bank has petitioned Inspector-General of Police Kayode Egbetokun, citing misuse of law enforcement agencies and the National Assembly to frustrate debt repayment efforts.
Background: A Long-Standing Debt Dispute
The conflict between Sterling Bank and Miden Systems Ltd dates back to October 18, 2021, when the Federal High Court ruled in favor of the bank, confirming the debtor’s liability and mandating repayment. However, according to Sterling Bank’s Chief Marketing Officer, Maurice Igugu, Miden Systems and Dr. Usoro have engaged in a deliberate campaign of noncompliance, using political influence and legal maneuvers to stall enforcement.
“Despite the clear judgment and the debtor’s acknowledgment of substantial outstanding debt, Miden Systems Ltd has resorted to misappropriating loan funds, shielding assets through corporate restructuring, and abusing legal channels to delay justice,” Igugu stated.
Allegations Against Miden Systems & Police Intervention
Miden Systems Ltd had earlier petitioned the House of Representatives Committee on Public Petitions, making severe allegations against Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum. The company accused these entities of fraudulent debits, money laundering, and mismanagement of funds in its account.
Sterling Bank, however, refuted these claims, labeling them as diversionary tactics aimed at evading legitimate debt obligations. The bank further alleged that Dr. Usoro and his associates have:
• Exploited political connections to obstruct enforcement of the court ruling.
• Used the Police Force Criminal Investigation Department (CID) to intimidate Sterling Bank executives.
• Diverted loan funds for personal use while defaulting on obligations.
• Engaged in fraudulent restructuring of company ownership to shield assets from creditors.
Legal Actions Taken by Sterling Bank
In response to these developments, Sterling Bank submitted a formal petition to the Inspector-General of Police on December 10, 2024, through its legal counsel, Kunle Ogunba, SAN. The petition detailed multiple financial misconduct allegations against Miden Systems and Dr. Usoro, including:
• Loan diversion and asset misappropriation.
• Illegal restructuring of company shareholding to avoid liability.
• Attempts to manipulate law enforcement to evade debt settlement.
Additionally, on November 20, 2024, the Federal High Court dismissed an appeal by Miden Systems Ltd and Dr. Usoro seeking to overturn the original debt ruling, citing abuse of judicial process. This reaffirmed Sterling Bank’s legal standing and reinforced the binding nature of the court-approved settlement terms.
Sterling Bank’s Position and Call for Public Support
Sterling Bank insists that Miden Systems’ debt deductions were conducted lawfully, based on a consent judgment signed by both parties on June 10, 2021. The bank has called on stakeholders and the public to disregard unverified accusations and recognize the situation as an attempt to avoid legitimate financial obligations.
“We remain committed to protecting our reputation and the interests of our customers. This is a clear case of debt evasion through political interference. We trust that law enforcement will ensure justice is served,” Igugu concluded.
What’s Next?
With Sterling Bank escalating the matter to the IGP, the case now hinges on how law enforcement will respond to the alleged misuse of power. The outcome could set a precedent for corporate debt enforcement in Nigeria, especially concerning the role of political influence in legal disputes.
Sterling Bank Limited has taken legal action against Miden Systems Limited and its director, Dr. Brendan Usoro, over allegations of harassment and attempts to bypass a court-mandated debt settlement. The bank has petitioned Inspector-General of Police Kayode Egbetokun, citing misuse of law enforcement agencies and the National Assembly to frustrate debt repayment efforts.
Background: A Long-Standing Debt Dispute
The conflict between Sterling Bank and Miden Systems Ltd dates back to October 18, 2021, when the Federal High Court ruled in favor of the bank, confirming the debtor’s liability and mandating repayment. However, according to Sterling Bank’s Chief Marketing Officer, Maurice Igugu, Miden Systems and Dr. Usoro have engaged in a deliberate campaign of noncompliance, using political influence and legal maneuvers to stall enforcement.
“Despite the clear judgment and the debtor’s acknowledgment of substantial outstanding debt, Miden Systems Ltd has resorted to misappropriating loan funds, shielding assets through corporate restructuring, and abusing legal channels to delay justice,” Igugu stated.
Allegations Against Miden Systems & Police Intervention
Miden Systems Ltd had earlier petitioned the House of Representatives Committee on Public Petitions, making severe allegations against Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum. The company accused these entities of fraudulent debits, money laundering, and mismanagement of funds in its account.
Sterling Bank, however, refuted these claims, labeling them as diversionary tactics aimed at evading legitimate debt obligations. The bank further alleged that Dr. Usoro and his associates have:
• Exploited political connections to obstruct enforcement of the court ruling.
• Used the Police Force Criminal Investigation Department (CID) to intimidate Sterling Bank executives.
• Diverted loan funds for personal use while defaulting on obligations.
• Engaged in fraudulent restructuring of company ownership to shield assets from creditors.
Legal Actions Taken by Sterling Bank
In response to these developments, Sterling Bank submitted a formal petition to the Inspector-General of Police on December 10, 2024, through its legal counsel, Kunle Ogunba, SAN. The petition detailed multiple financial misconduct allegations against Miden Systems and Dr. Usoro, including:
• Loan diversion and asset misappropriation.
• Illegal restructuring of company shareholding to avoid liability.
• Attempts to manipulate law enforcement to evade debt settlement.
Additionally, on November 20, 2024, the Federal High Court dismissed an appeal by Miden Systems Ltd and Dr. Usoro seeking to overturn the original debt ruling, citing abuse of judicial process. This reaffirmed Sterling Bank’s legal standing and reinforced the binding nature of the court-approved settlement terms.
Sterling Bank’s Position and Call for Public Support
Sterling Bank insists that Miden Systems’ debt deductions were conducted lawfully, based on a consent judgment signed by both parties on June 10, 2021. The bank has called on stakeholders and the public to disregard unverified accusations and recognize the situation as an attempt to avoid legitimate financial obligations.
“We remain committed to protecting our reputation and the interests of our customers. This is a clear case of debt evasion through political interference. We trust that law enforcement will ensure justice is served,” Igugu concluded.
What’s Next?
With Sterling Bank escalating the matter to the IGP, the case now hinges on how law enforcement will respond to the alleged misuse of power. The outcome could set a precedent for corporate debt enforcement in Nigeria, especially concerning the role of political influence in legal disputes.
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