The Nation Newspaper

Tag: Bank PHB

  • FG to Atiku: you have questions to answer over collapse of Bank PHB

    The Minister of Information, Lai Mohammed on Friday said that the former Vice President and Presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar has questions to answer over the collapse of Bank PHB.

    Atiku presently is in the United States of America.

    Briefing State House correspondents, Lai Mohammed, said that there are fresh evidences that Atiku benefitted from the slush funds that led to collapse of the bank.

    In 2009, he said that a memo was raised for the issuance and payment of N156 million to Atiku’s account.

    The onus, he said, is on Atiku to exonerate himself.

    He said “I have come to make few remarks about the recent visit of the presidential candidate of the Peoples Democratic Party to the US. You can recall that few weeks ago, I did issue a statement advising the US government not to issue visa to Atiku.

    “Remember also that in that same press conference, I also stated that it remains the prerogative of the US government to issue visa to anyone it deems fit.

    “Let me say right away t we are not perturbed one bit that Alhaji Atiku Abukakar was able to secure visa to the US. As a matter of fact, he can go ahead and get the US Green card that will not save him from imminent defeat in the forthcoming election.

    Read Also: Atiku confirms arrival in U.S.

    “I want to remind Abubakar that the elections will be right here in Nigeria and not in the US.

    “In any event, any time Abubakar returns home, he has questions to answer following the fresh evidence that we have that he benefitted from slush funds that led to the collapse of the former Bank PHB.

    “The document we have shows that he benefitted to the tune of N156 million from that slush fund.

    “The paper which we have here started from an internal memo on the Jan. 13, 2009, in which reads please refer for discussion your requested overdraft in favour of Atiku Abubakar for N156 million and deliver same to me. Please note that it must be delivered today(Jan. 13) on the same date, another memo was generated to confirm—please confirm that the amount stated below be issued from Claremont Management Services account.

    “And we have evidence here of the account mandate—the name of Atiku Abubakar; we also have a copy of the cheque in which the sum of N156 million was issued to Atiku Abubakar dated Jan. 13, 2009 and of course we also have statement of account within that period that confirms that this sum was actually paid into his account.

    “These are fresh evidence as to his involvement in the collapse of Bank PHB, so want to him to stay as long he wants in the US but as soon he comes back; he has to explain to the electorates and to Nigerians what is his role in the collapse in the former Bank PHB.” he said

    According to him, the Buhari’s administration is not perturbed by Atiku’s visit to the United States.

    He added “He can go ahead and get the US Green card; any time he comes back, he as questions to answer.”

     

     

  • Alleged N125b fraud: EFCC re-arraigns Keystone Bank ex-MD

    Alleged N125b fraud: EFCC re-arraigns Keystone Bank ex-MD

    The Economic and Financial Crimes Commission (EFCC) on Tuesday re-arraigned former Managing Director of Bank PHB (now Keystone Bank), Mr Francis Atuche at the Federal High Court in Lagos.

    He was charged along with a former defunct Spring Bank Plc Managing Director, Mr. Charles Ojo on an amended 45-count charge bordering on alleged N125 billion fraud.

    The re-arraignment was caused by the transfer of Justice Saliu Saidu to another division after the trial had commenced.

    The case will begin afresh for the fifth time before Justice A. Faji.

    Atuche and Ojo have been standing trial since 2009 over allegations of acquiring Keystone Bank’s shares using depositors’ funds.

    They pleaded not guilty to the 45 counts of conspiracy, reckless granting and approval of loans and money laundering, between September 1, 2006, and 2009.

    Atuche was also accused of applying N3.5billion being proceeds of unlawful loans granted to Tradjek Nigeria Limited, a subsidiary of Futureview Financial Services Ltd, in payment for his acquisition of shares of Bank PHB using various companies as fronts with an intention to conceal the ownership of the loans.

    Atuche
    Atuche

    EFCC said he collaborated with different companies to conceal the genuine origins of the N3.5billion used to acquire the bank’s shares.

    The alleged offences, all of which Atuche denied, contravene Section 14(1) of the Money Laundering (Prohibition) Act and Section 516 of the Criminal Code Act Cap 38, Laws of the Federation of Nigeria 2004.

    Reckless granting of loans contravene Section 7(1) (b) of the Advance Fee Fraud and other Fraud Related Offences Act and punishable under section 7(2)(b).

    The defendants pleaded not guilty.

    Ojo’s lawyer, Mr Osahon Idemudia, urged Justice Faji to allow the defendants continue on the bail terms granted them on November 9, 2009, by Justice Akinjide Ajakaiye, before whom they were first arraigned.

    Justice Faji granted the prayer, holding that the defendants shall continue on the N50million bail with one responsible surety each.

    The surety, he said, must deposit the Certificate of Occupancy of his landed property either in Ikoyi or Victoria Island.

    Justice Faji, however, said the sureties must update their tax clearance within 14 days.

    He adjourned till February 23, March 16 and 17 for trial.

    [news_list display=”tag” tag=”Trial” count=”6″ show_more=”on”]

  • N27.5b theft: Court frees Atuche, two others

    N27.5b theft: Court frees Atuche, two others

    A Lagos High Court sitting in Ikeja has struck out a N25.7 billion charge brought against a former managing director of the defunct Bank PHB, Francis Atuche, by the Economic and Financial Crimes Commission.

    The EFCC had arraigned Atuche and his wife, Elizabeth, alongside a former Chief Financial Officer of the bank, Ugo Anyanwu in court for allegedly stealing N25.7billion belonging to the bank, while the first defendant (Atuche) was the Chief Executive Officer.

    Delivering judgment in the matter on Monday, the trial judge, Justice Lateef Lawal-Akapo, dismissed the charge for lack of jurisdiction.

    The judge said the prosecution’s case lacked merit.

    “I find no merit in the prosecution’s application, it is hereby dismissed. The defendants’ application dated November   27, 2013 succeeds and I hereby make the following orders:

    “The criminal charge in this suit is hereby struck out and the accused persons namely- Francis Atuche, Elizabeth Atuche and Ugo Anyawu are discharged. The complainant’s notice of plenary objection dated December 3, 2013 is hereby dismissed.”

    Counsels to the defendants, Chief Anthony Idigbe (SAN) and Sylvia Ogwemoh (SAN) had in separate applications asked the court to quash the charge, citing the Court of Appeal judgment of November 21, 2013.

     

  • Court dismisses CBN ‘s objections to Bank PHB shareholders’ suit

    Court dismisses CBN ‘s objections to Bank PHB shareholders’ suit

    HE Federal High Court in Lagos has dismissed preliminary objections filed by the Central Bank of Nigeria (CBN), the Asset Management Corporation of Nigeria (AMCON) and others against a suit by some shareholders of the defunct Bank PHB Plc.

    Justice Mohammed Yinusa assumed jurisdiction in the suit in which the plaintiffs are challenging the alleged illegal transfer of their shares to Keystone Bank without compensation.

    The plaintiffs are demanding N38.6 billion from the defendants being “fair compensation” to them for the value of their investment in Bank PHB Plc.

    They are also praying for an order setting aside the alleged unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB, and are seeking N20 billion as damages for the loss of value of their investments in Bank PHB.

    CBN, Keystone Bank, Attorney-General of the Federation, Nigeria Deposit Insurance Corporation (NDIC) and AMCON are the respondents.

    The plaintiffs said NDIC on August 5, 2011, wrote Bank PHB’s managing director informing him that the bank’s assets and liabilities had been transferred to Keystone Bank without any form of adequate compensation to the shareholders.

    The plaintiffs are praying the court to declare that the action amounted to unlawful compulsory acquisition of their investment and is, therefore, unconstitutional, arbitrary, null and void.

    The defendants, however, filed preliminary objections to the suit, urging the court to strike it out for lack of jurisdiction.

    Arguing the objection, CBN’s lawyer Kola Awodein said the plaintiffs did not bring the action properly.

    However, the plaintiffs’ lawyer, Anthony Idigbe, urged the court to dismiss the objections.

    Justice Yunusa held that as shareholders, the plaintiffs have a say in the bank, adding that no arm of government could take away a citizen’s right to acquire or hold property; therefore, there can be no compulsory acquisition of the shares.

    The court said the plaintiffs were right to exercise their right to sue.

    Justice Yunusa added that the plaintiffs have the locus standi to institute the action.

    “The mode of commencement is not material, there is no limitation on the time to bring a fundamental human right matter. Also, there is no requirement of compliance with the statutory pre-action notices when it involves fundamental human rights issues,” the court held.

    The verdict may affect AMCON’s planned sale of Keystone Bank in the second quarter of this year.

    Justice Yinusa adjourned till March 31 for hearing.

  • Bank PHB shareholders seek N58b compensation from CBN, Keystone Bank

    Some shareholders of the defunct Bank PHB Plc have sued the Central Bank of Nigeria (CBN) at the Federal High Court in Lagos over the alleged illegal transfer of their shares to Keystone Bank without compensation.

    The plaintiffs are demanding N38.6billion from the defendants being “fair compensation” to them for the value of their investment in Bank PHB Plc.

    They also want N20billion as damages for the loss of their investments’ value in Bank PHB.

    The plaintiffs are praying for an order setting aside the alleged unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB.

    Keystone Bank, Attorney-General of the Federation, Nigeria Deposit Insurance Corporation (NDIC) and the Asset Management Corporation of Nigeria (AMCON) are other defendants in the action.

    The plaintiffs said NDIC on August 5, 2011, wrote the Managing Director of Bank PHB, informing him that the bank’s assets and liabilities had been transfered to Keystone Bank.

    According to the plaintiff, the letter entitled: “Re: Exercise of intervention powers by the NDIC” purports to vest Bank PHB’s assets and liabilities, including the plaintiffs’ investments, in Keystone Bank.

    They said NDIC did so without any form of adequate compensation being paid to the shareholders.

    The plaintiffs are praying the court to declare that the action amounted to unlawful compulsory acquisition of their investments and is, therefore, unconstitutional, arbitrary, null and void.

    They also want the court to hold that the purported nationalisation of their investments without being paid compensation is unlawful and contravenes Section 44 of the 1999 Constitution.

    Nine of the shareholders sued for themselves and on behalf of others whose names were on the register of members as at October 2, 2009.

    They are – Benedicta Oyiana, Ifeyinwa Oyiana, Chioma Oyiana, Okoli Dumebi, Felix Oyiana, Pius Okonji, Obiageli Okonji, Austin Ndiwa and Allwell Brown.

    The defendants, however, filed preliminary objections to the suit, urging the court to strike it out for lack of jurisdiction.

    Arguing the objection on Thursday, CBN’s lawyer, Mr. Kola Awodein, said the plaintiffs did not the file the action properly.

    “We are saying that their claim is contentious, so they should come by writ of summons, not originating summons.

    “It’s not sentiment. It’s about the law. If you’re coming before the court, you must come properly. I urge your Lordship to strike out the matter,” he said.

  • Alleged theft: Power outage stalls Atuche’s trial

    Power outage at the premises of the Lagos High Court, Ikeja, on Wednesday stalled the trial of a former managing director of Bank PHB, Francis Atuche.

    The News Agency of Nigeria reports that Atuche and his wife, Elizabeth, are standing trial over alleged theft of N25.7 billion belonging to the bank (now Keystone Bank).

    They are being prosecuted alongside a former Chief Financial Officer of the bank, Ugo Anyanwu, before Justice Lateefat Okunnu.

    However, the proceedings could not go on as scheduled on Wednesday because of power outage which affected some courtrooms in the complex.

    One of the generators supplying power to the new court complex where Okunnu’s courtroom is located was said to have developed a fault.

    The situation forced the court to adjourn the case till September 26 for Atuche to continue his testimony.

    Atuche had earlier denied the theft charge preferred against him by the Economic and Financial Crimes Commission (EFCC).

    The former bank chief had said that he could not engage in theft as a member of Catholic faith.

    He also told the court how he grew a mortgage finance company – Pinnacle Investment Limited — and transformed it into Platinum Bank Plc.

    Atuche said the bank merged with Habib Bank following the mandatory N25 billion recapitalisation policy initiated by former governor of Central Bank, Prof. Charles Soludo.

     

  • Ex-Bank PHB MD Atuche rejects court’s rule on criminal trial

    Ex-Bank PHB MD Atuche rejects court’s rule on criminal trial

    A former Managing Director of Bank PHB Plc (now Keystone Bank), Mr Francis Atuche, yesterday urged the Federal High Court not to subject him to a criminal trial for alleged bank fraud using its practice rules.

    His lawyer Chief Anthony Idigbe (SAN) said certain requirements in the Federal High Court Practice Direction 2014 contravened the provisions of the 1999 Constitution.

    The lawyer said the practice direction was inapplicable to the trial, adding that the prosecution cannot force the defence to disclose its case in advance.

    According to him, it is irregular for the defendant to be compelled, as required by the rules, to specify in writing the defence it intends to raise or which aspects of the prosecution’s case it intends to oppose when the prosecution had not called any witness.

    Idigbe urged the court to jettison the practice direction, adding that the power of the court’s Chief Judge (CJ) was limited by the provisions of Sections 4 of the Criminal Procedure Act.

    The practice direction requires the prosecution to file a summary of their case, the documents they wish to tender as exhibits, further documents and investigations it will require.

    The defence is required to file the summary of its case, state its witnesses, documents proposed to be tendered as exhibits and the areas of the prosecution’s case it admits or wishes to oppose, all before the trial begins.

    Idigbe said the practice direction is against the provisions of the Constitution, which place the onus on the prosecution to prove the guilt of the accused.

    The lawyer said the rule, in effect, is shifting the responsibility to the accused to prove his innocence by asking him to provide documents for his defence.

    He said no burden of proof should be placed on the defendant, adding that the practice direction tries to force the defence to specify their strategy.

    Prosecution lawyer Mr Kemi Pinheiro (SAN) said Section 254 of the 1999 Constitution vests the Chief Judge with the power to make court rules.

    “Any power stipulated by the Constitution cannot be diminished,” he said.

    Pinheiro said Idigbe failed to show which existing law forecloses the CJ from formulating the practice direction.

    He said: “The practice direction is not only in consonance with Section 254. At no time has the CJ exceeded those powers. It complements rather than derogates from Section 36 of the Constitution…”

    “His (Idigbe’s) anxiety is completely misplaced. The requirement is merely for him to specify which aspects of the charge he agrees with,” Pinheiro said.

    He maintained that the defence must clearly show any law which precludes the CJ from making the rules, adding that its basis was to enhance speedy disposal of cases.

    The Economic and Financial Crimes Commission (EFCC) re-arraigned Atuche and Keystone Bank’s former director Charles Ojo on an amended charge of loan fraud and money laundering.

    They pleaded not guilty to the 45 counts of conspiracy, reckless granting and approval of loans and money laundering, between September 1, 2006 and 2009.

    Atuche was accused of applying N3.5billion being proceeds of unlawful loans granted to Tradjek Nigeria Limited, a subsidiary of Futureview Financial Services Ltd, in payment for his acquisition of shares of Bank PHB using various companies as fronts with an intention to conceal the ownership of the loans.

    EFCC said he collaborated with different companies to conceal the genuine origins of the N3.5billion used to acquire the bank’s shares.

    The alleged offences contravene Section 14(1) of the Money Laundering (Prohibition) Act and Section 516 of the Criminal Code Act Cap 38, Laws of the Federation of Nigeria 2004, while reckless granting of loans contravene Section 7(1)(b) of the Advance Fee Fraud and other Fraud Related Offences Act and punishable under section 7(2)(b).

    Justice Saliu Saidu adjourned till September 30 for ruling.

     

  • Alleged theft: Absence of expert stalls Atuche’s trial

    The absence of a handwriting expert on Tuesday stalled the trial of a former managing director of Bank PHB, Francis Atuche, holding before Justice Lateefat Okunnu of the Lagos High Court, Ikeja.

    The News Agency of Nigeria reports that Atuche and his wife, Elizabeth, are standing trial for allegedly stealing N25.7 billion belonging to the bank.

    They were arraigned by the Economic and Financial Crimes Commission alongside a former Chief Financial Officer of the bank, Ugo Anyanwu.

    During Tuesday’s proceedings, the judge notified the parties that the handwriting expert had sent a letter to the court that he would not be available to provide evidence.

    The expert witness, who is being called by the defence to analyse some documents relating to the transactions contained in the charge, apologised for his absence.

    He informed the court that he was presently testifying in another matter at Onitsha in Anambra and would be available on May 22 and 23.

    Following the development, Atuche’s counsel, Chief Anthony Idigbe (SAN) asked the court for an adjournment and also to vacate the May 21 date fixed for the trial.

    “The witness is a busy witness. He gives evidence around the country and he has given assurances that he will be here on May 22,” Idigbe said.

    Responding, the EFCC counsel, Mr. Kemi Pinheiro (SAN), opposed the call for an adjournment.

    Pinheiro argued that the absence of the expert witness does not stop the defence from calling other witnesses.

    In a short ruling, the judge held that the reason given by the defence for the adjournment of the proceedings was tenable.

    Okunnu, however, said the expert witness did not explain to the court why he would not be available on May 21 and consequently refused to vacate the date.

     

  • Atuche, Ojo’s case reassigned to another judge

    Atuche, Ojo’s case reassigned to another judge

    The Chief Judge of the Federal High Court, Justice Ibrahim Auta, on Monday re-assigned the case filed against the former managing director, defunct bank PHB, Francis Atuche, charged with N125 billion fraud.

    The case which was initially before Justice Rita Ofili-Ajumogobia, has now been transferred to Justice Saliu Saidu.

    No reason was given for the transfer.

    The matter is now scheduled to come up before Justice Saidu on February 20.

    The EFCC filed an amended 45-count charge bordering on the alleged offence againt Atuche and the former managing director of defunct Spring Bank, Charles Ojo.

    The News Agency of Nigeria recalls that the accused were rearraigned before Ofili-Ajumogobia on November 14, 2012, following the retirement of Justice Akinjide Ajakaiye, the first judge.

    They had each pleaded not guilty to the charge and were granted bail.

    NAN reports that in the charge, the accused were alleged to have granted fraudulent credit facilities, manipulated shares and committed general banking fraud to the tune of over N125 billion.

    The offence is said to contravene the provisions of Section 15 of the Failed Banks (Recovery of debts) and Financial Malpractices in Banks Act, 2004.

    NAN reports that the prosecution had yet to open its case before the transfer.

     

     

     

  • Atuche wants theft charges dismissed

    Atuche wants theft charges dismissed

    Former Managing Director of defunct Bank PHB, Francis Atuche, on Wednesday asked a Lagos High Court, Ikeja, to dismiss the N4.2 billion theft charges preferred against him by the Economic and Financial Crimes Commission (EFCC).

    The request to quash the charges was contained in an application filed by his counsel, Mr. Abubakar Shamsudeen before Justice Adeniyi Onigbanjo of the Lagos High Court, Ikeja.

    Atuche’s application to quash the charges was based on a judgment delivered by the Court of Appeal, Lagos Division, on November 21, which dismissed the theft charge preferred against a former managing director of Finbank Plc, Mr. Okey Nwosu and some others.

    The Court of Appeal had in Nwosu’s case, held that the Lagos High Court lacked the jurisdiction to entertain the charges preferred against him.

    The court had ruled that the state High Court cannot adjudicate on the charges because they emanated from capital market transactions.

    The court held further that a state High Court lacks jurisdiction to entertain the charges which are within the exclusive jurisdiction of the Federal High Court.

    The EFCC had charged Atuche to court alongside a former director of Bank PHB, Funmi Ademosun.

    The commission had alleged that they stole N4.2 billion belonging to Caverton Helicopters Limited in September 2007.

    Atuche and Ademosun had pleaded not guilty to the charges.