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A federal High Court in Abuja refuted the Inspector General of Police’s (IGP) action of ordering 12 banks and financial institutions to reverse billions of naira withdrawn from Flutterwave account.
This huge sum of money was allegedly withdrawn at Wema Bank fraudulently.
According to Nairametrics, the withdrawals occurred due to a system glitch between October 12 and 13, 2023.
The ex parte motion tagged FHC/ABJ/CS/1015/24, dated July 17, 2024, was presented to the Court.
The legal team representing the IGP contended that 244 suspects, the defendants, had illicitly siphoned off billions of naira from Flutterwave’s account.
These huge amounts were then transferred to multiple bank accounts held by different individuals who were either untraceable.
However, the High Court refused to approve the ex parte motion. It emphasized the need for a complete story, pointing out that the banks’ story has to be heard.
The Court also noted the applicant’s failure to file a motion on notice alongside it.
The Judge, Justice Peter Lifu, was heard, saying, “Should I order the banks to reverse the funds without hearing their side of the story, based on your one-sided account?”
He further described the ex parte motion as a clear breach of Section 36 of the 1999 constitution, which guarantees the right to a fair hearing.
Flutterwave has experienced several incidents of security breaches, losing funds to perpetrators.
According to TechCabal, The fintech allegedly lost N11 billion due to the security breach earlier this year, citing inside sources familiar with the incident.
However, all evidence revealed that the breach wasn’t successful.
Also Read: Flutterwave Cuts 24 Jobs to Focus on Payments and Remittance
Due to the attempt, Flutterwave requested A motion to freeze accounts in 27 Nigerian banks.
It also requested that financial institutions, including Access Bank, Kuda, Zenith Bank, and OPay, be filed with suit no. MISC/MC4/181/23, which was later granted on February 27, 2023.
In February 2024, a court in Lagos ordered the 27 banks to unfreeze the accounts.
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