A former relationship manager at First Bank of Nigeria (FBN) says loans worth billions of naira were transferred to companies related to Oba Otudeko, then chairman of the bank, even though they were granted in the name of other firms.
Adesuwa Ezenwa is currently at the National Industrial Court
(NIC), Lagos, division, claiming unfair dismissal by FBN, which is listed as
the sole defendant.
In her statement of facts, Ezenwa (the claimant), said she
was dismissed on October 5, 2016 on fraudulent loan disbursements “without any
explanation” as to her culpability.
After her sack, she was invited to appear before a credit
disciplinary committee reviewing facilities granted to a firm known as Supply
and Services Ltd, a subsidiary of Royal Ceramics Group — a major customer of
the bank.
Although the committee cleared her of having any interest in
the loans disbursed, Ezenwa said she was admonished during the disciplinary
proceedings for not “whistleblowing on some of the transactions approved by her
group head (Mr Olatunji) and the Executive Vice President (Mrs. Cecilia
Majekodunmi)”.
She said the admonition was most unfair and unwarranted as
she was in no position to whistleblow on her superiors, “though some of the
loan facilities reviewed were unsecured facilities granted to companies in
which the chairman of the bank, Chief Oba Otudeko and the erstwhile Managing Director,
Mr Bisi Onasanya, had substantial investments”.
“The persons to whom these reports would have been made were
the very persons who were the perpetrators of the misdeeds,” her statement to
the court reads.
“The impugned
facilities were approved and disbursed under the direction and authority of her
Group head and executive vice president and camouflaged as loans granted by
some other unsuspecting customers.”
‘N12 BILLION GRANTED
TO FIRM OTUDEKO HAS SUBSTANTIAL INVESTMENT IN’
In one scenario, according to her, “unsecured facilities”
worth about N12 billion were “granted to a company in which Oba Otudeko has
substantial investment”.
However, the “loan was camouflaged as loans granted to the
Stallion Group of Companies, which at a point in time discovered this false
entry in its statement of account and protested same”.
An unsecured credit facility is a loan granted to businesses
without the requirement of collateral.
In another instance, she said, an “unsecured facility” of N2
billion was granted in 2012 to Broadwaters Resources Company Nigeria Ltd, which
she said turned out to be a mere conduit pipe employed by Majekodunmi and
Onasanya “for siphoning monies from the bank”.
The loan, according to the court filing, was never repaid.
“Out of the N12 billion camouflaged as lending to the
Stallion Group, N8.21 Billion was transferred through various accounts to a
final destination account belonging to a company known as V TECH LTD which
belongs to the Chairman of FBN Holdings, Oba Otudeko while the sum of N4.45
Billion out of the same fictitious facility was transferred to Ontario Oil and
Gas. The facility remains unpaid to date,” the document reads.
“These were not the
only acts of malfeasance by the top management of the Bank but several other
transactions were undertaken by other top management staff for which the
Plaintiff is being punished.
“Apart from funds camouflaged as loans granted to the
Stallion Groups, similar loans were granted over the years by Mr. Olatunji (the
Branch Manager) and Mrs. Cecilia Majekodumi to other customers of the Bank
amongst which are SUPPLIES AND SERVICES LTD. Supplies and Services Ltd is a
subsidiary of ROYAL CERAMICS GROUP OF COMPANIES and several loan approvals were
initiated and authored by Mr. Olatunji and Mrs. Majekodunmi.
“The facilities
granted to Supplies and Services Ltd was subsequently sublent and disbursed in
smaller bits to several customers on more profitable terms to both officers and
these customers include Swap Technologies and Telecomms Plc, Netconstruct
Nigeria Ltd, Orbit Cargo, High Performance Distributions Ltd etc.
“Some of the transactions undertaken by the Bank are already
being investigated by the Economic and Financial Crimes Commission (EFCC).
Their investigations/Report will be relied on at the trial.”
Ezenwa said given the size of the loans, the board of the
bank “cannot but be complicit in the lendings, which were above the limits of
the executive directors, vice-president and managing director of the bank”.
OTUDEKO AND HIS
CONTROVERSIAL BANK DEALS
The businessman is no stranger to bank deals that end up
becoming controversial.
Some FBN Holdings shareholders protested after Otudeko
purchased 4,770,269,843 units of FBN Holdings’ shares through his Honeywell
Group.
The purchase brought the stake held by the company in the
premier bank to 13.3 percent.
However, a few days after the purchase, Ecobank wrote a
letter to FBN Holdings, asking the bank to reject Otudeko’s bid to become its
largest shareholder.
In July, the Securities and Exchange Commission (SEC) said
it was investigating the acquisition of 4.77 billion shares of FBN Holdings by
Otudeko.
The outcome has not been made public.
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