The Nation Newspaper

Tag: Afribank

  • NGO urges EFCC to probe management of defunct Afribank

    NGO urges EFCC to probe management of defunct Afribank

    The Economic Financial Crime Commission (EFCC) has been asked to reopen the case involving the management of the defunct Afribank, it was learnt.

    The Nigerian Transparency Network (NTN), a non-governmental organisation (NGO), petitioned the EFCC on the issue with the aim of ensuring justice for the affected shareholders of the bank.

    According to the group which is calling for the prosecution of the top management of the failed bank, EFCC should revisit the case in line with the present administration’s zero tolerance for corru[tion.

    The group in a press statement signed by its Executive Director, Aliyu Ibrahim, stated that the only way the anti-graft body could assist the shareholders who are already counting their losses is to ensure that those responsible for the collapse of the bank are brought to book in line with the present administration anti- corruption stand.

    The statement reads in part: “We wish to address you gentlemen of the press today as a responsible and responsive civil society organization on behalf of the helpless and seemingly hopeless shareholders of the defunct Afribank Plc whose investment in the shares of the bank has been hanging since the collapse of the bank in 2009 occassioned by alleged financial misappropriation and fraud by the erstwhile executive directors of the said bank.

    “Gentlemen of the press you would recall that sometime in 2009 the economic and financial crimes commission began the prosecution of members of the management staff of the bank over alleged complicity in the issue of financial dealings that led to the collapse of the bank.

    “We also recalled that we have written a letter of petition to the current chairman of EFCC dated 31st of July, 2015 and a copy of it published in an advertorial in the Nigerian Tribune of Monday 3rd August, 2015 requesting for the Chairman of the commission to revisit the matter with a view to properly investigate the matter and begin a fresh prosecution in the general interest of justice and particular interest of the shareholders who are already counting their losses.

    “We therefore use this medium to call on the leadership of EFCC to immediately look into the matter.

    “It is also worthy of note to state that the current administration  under the astute leadership of President Muhammodu Buhari has promised a zero tolerance to corruption, a feat we hope the EFCC will uphold in order to support the objectives of government as it relates to corruption.”

  • Alleged fraud: Court grants ex- Afribank director medical leave

    Justice Olabisi Akinlade of a Lagos High Court, Igbosere, on Thursday granted a former director of defunct Afribank, Chinedu Onyia, medical leave to the United Kingdom.

    Onyia alongside the bank’s former managing director, Sebastian Adigwe, it’s former chairman, Osa Osunde‎, former executive directors – Jibrin Isah, Isa Zailani, Henry Arogundade and Isa Zailani and a stockbroker, Peter Ololo ‎with his firm, Falcon Securities Limited, are being tried over an alleged N55billion money laundering by the Economic and Financial Crime Commission (EFCC).

    Onyia had through his lawyer, Kolade Obafunmo, filed an application dated July 10, seeking the leave of court to travel abroad for medical attention..

    While arguing the application before the court on Tuesday, Obafunmo reminded the court of the approval of a similar application in 2011.

    ‎Subsequently, Justice Akinlade obliged the defendant, but ordered that he returns his international passport on or before September 10 to the court registrar.

    The defendants were alleged to have granted questionable ‎loans to different companies purportedly to buy shares in blue chip companies.

    A prosecution witness, Emmanuel Al-Hassan, while giving evidence before the court, alleged that the said funds were diverted for the personal use of the defendants.

    Al-Hassan told the court that Adigwe and other directors transferred N15 billion in favour of Rehoboth Asset Limited.

    According to him, the money was approved as loan by the defendants at the 252nd board meeting of Afribank to buy shares of blue chip companies on the floor of the Nigerian Stock Exchange (NSE).

    He disclosed that the shares were not bought as agreed in the offer letter, rather the sum was eventually transferred into AIL Securities Limited account on September 15, 2008 through cheques 11418001 and 11418002.

    Al-Hassan stated that the defendants employed the same method to transfer another N15 billion in favour of Falcon Securities Limited on October 15, 2008, adding that prior to the transaction, Afribank and Falcon had maintained a banker-customer relationship.

     

  • How Adigwe, others defrauded AfriBank’

    A Lagos High Court, Igbosere, on Monday heard how the managing director of defunct AfriBank, Sebastian Adigwe and others robbed the bank of N26 billion.

    Prosecution witness, Emmanuel Al-Hassan, who was the Investigating Police Officer (IPO) told the Justice Olabisi Akinlade court that Adigwe granted fictitious loans without security to AIL Securities Limited, Asset Management Nominees Holding Limited and Falcons Securities Limited.

    The former bank chief is facing a 36 count charge of conspiracy, stealing and receiving stolen property.

    He was arraigned alongside Osa Osunde, Jibrin Isah, Isa Zailani, Chinedu Onyia, Henry Arogundade and Peter Ololo, who all pleaded not guilty to the charges.

    According to the Economic and Financial Crimes Commission’s (EFCC) witness, Adigwe on March 2, 2009, granted a N10 billion loan to Petosan Property Development Company without any security.

    He told the court that when the first defendant (Adigwe) was interrogated on the disbursement of N26.5 billion he also maintained that the companies did not owe Afribank a dime.

    Al-Hassan who was led in evidence by EFCC’s lawyer, Dr. Ekwueme, told the court that an additional N16.5billion was taken from Afribank and lodged into Kolvey Company Limited, which belonged to Peter Ololo, the seventh defendant.

    “In the course of investigation, I discovered that Petosan Property Development Company and Kolvey Company Limited had no banker/customer relationship with Afribank prior to the disbursement of the money.

    “The first credit in the account of Petosan Property Development Company was N100, 000 and few weeks after N10 billion was lodged into the account.

    “Investigation further revealed that the sum of N26 billion was later transferred to the account of Falcon Securities and Property Development Company, belonging to the defendants.

    ‘We gathered that immediately the money entered into these accounts, cheques were issued in favour of Falcon Securities. We also learnt that there was no relationship between these companies and Falcon Securities.

    ‘’During findings we recovered Afribank cheque booklets belonging to Kolvey Company Limited from an officer of Afribank and it was discovered that various sum of money were disbursed to Falcon securities.”

  • Ex- Afribank MD denies involvement in ‘irregular transaction’

    Ex- Afribank MD denies involvement in ‘irregular transaction’

    A former managing director of the Afribank Plc (now Mainstreet Bank), Sebastine Adigwe, on Thursday told a Lagos High Court, Ikeja, that he did not engage in any irregular banking transactions.

    Adigwe told the court presided over by Justice Olabisi Akinlade that no money was transferred to his personal account contrary to the charges preferred against him by the Economic and Financial Crimes Commission (EFCC).

    The former Afribank MD made the submission through his counsel, Chief Anthony Idigbe (SAN), at the resumed hearing of the charges filed against him by the commission.

    The EFCC had arraigned Adigwe for allegedly stealing N87.5 billion belonging to the bank.

    He is standing trial alongside five other former directors of the bank — Osa Osunde, Isa Zailani, Chinedu Onyia, Henry Arogunde and Peter Ololo.

    A former Head of Special Project of Afribank, Mr. Ndubuisi Osakwe, who was the first prosecution witness, had earlier told the court that loans were granted to some companies in September 2008 by the bank.

    According to Osakwe, who was under cross examination by the defence counsel said a credit facility of between N15 billion and N13 billion, were granted to the companies for the purchase of Afribank shares from the capital market.

    He listed the beneficiaries of the facility to include Rehoboth Assets Management Limited, Falcon Securities Limited, Resolution Trust Investment Limited and Petosan Oil and Gas Limited.

    Osakwe disclosed that the companies later issued cheques in various sums in favour of one of the bank’s subsidiaries, Afribank Securities Limited.

    He said the money paid into Afribank Securities Limited account was later transferred into the account of Assets Management Nominees (ASEMAN) Limited, another company owned by the bank.

     

     

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