In a recent court case, a senior Bank of South Sudan official testified that Stanbic Bank credited $7.2 million to an aviation firm in 2016 but withheld the funds, claiming insufficient funds in their nostro account. The witness highlighted that there was no connection between the beneficiary and the nostro account, calling for a justification for withholding the funds. The aviation firm, Air Afrik Aviation, sued Stanbic for freezing the funds, leading to the termination of a plane leasing agreement with the South Sudan government. The Bank of South Sudan official emphasized that Stanbic should have either returned the funds or requested replenishment of their account before crediting the beneficiary. The airline sought damages for losses incurred due to the termination of the contract. Stanbic denied the claims, stating that the reversal was due to insufficient funds in the credit note from the South Sudan government. This case sheds light on the complexities of international banking transactions and the importance of proper fund management.
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S. Sudan official accuses Stanbic of withholding airline cash
