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Tag: Erastus Akingbola

  • Witness: No evidence Akingbola authorised loan disbursement

    A witness for the Economic and Financial Crimes Commission (EFCC) Modupe Ajayi told the Federal High Court in Lagos that defunct Intercontinental Bank Plc Managing Director/Chief Executive Officer Dr Erastus Akingbola did not authorise the disbursement of loans he was accused of recklessly granting.

    Ajayi, a former Intercontinental Bank Assistant General Manager/Deputy Chief Credit Officer, was led in evidence by prosecuting counsel Rotimi Oyedepo (SAN).

    She testified that applications for credit facilities were received at branches by relationship managers, and forwarded to the appropriate authority within the bank for approval.

    She said credits above N50millioon were forwarded to the head office, while those about N100million were approved by a management credit committee.

    According to Ajayi, there was a board credit committee that approved loans of up to N500million, while the bank’s full board approved loans above N500million in line with the bank’s credit policy.

    The witness gave analysis of several loans granted to some companies running into billions of naira during Akingbola’s tenure.

    During cross-examination by defence counsel Prof Taiwo Osipitan (SAN), the witness said she did not sign some of the approvals for the loans.

    Asked if any of those who signed the loans are on trial, the witness said no.

    Asked if Akingbola authorised the loans’ disbursement, the witness said: “The defendant did not sign any document authorising the disbursement.”

    Asked if the loans she analysed were secured, the witness said: “From the documents here, all the loans were secured.”

    Read also: Judge’s absence stalls trial of Akingbola

    She added: “The offers letters contain securities approved by the board. The securities were conditions precedent to disbursement.”

    Ajayi said she did not process any loan associated with Akingbola, nor did she delegate anyone to sign an approval for her.

    EFCC said Akingbola, between November 2007 and July 2008, “caused to be created a misleading appearance of active trading in the shares of Intercontinental Bank Plc on the Nigerian Stock Exchange by being connected with the utilisation of an aggregate sum of N179.385billlion of the bank’s fund for the purchase of the bank’s shares.”

    The commission said Akingbola converted N10billion belonging to the bank by obtaining three manager’s cheques in the names of Tropics Properties Ltd, Tropics securities Ltd and Bankinson Nigeria Ltd, which he “owned and controlled”.

    EFCC added in the charge: “The manager cheques were subsequently used to repay loan granted by Access Bank Plc to your companies and which sum you knew represented the proceeds of crime, to wit: stealing.”

    The alleged offence violates Section 14 (1) of the Money Laudering Act of 2004.

    In the 22-count charge, the prosecution alleged that Akingbola made an equity investment of N100million in Flexmore Technologies without a prior approval in writing of the Central Bank of Nigeria (CBN).

    It said Akingbola failed to take all reasonable steps to ensure compliance with the requirement to maintain, at all times, the minimum capital adequacy ratio specified by the CBN in compliance with Section 13(1) of the Banks and Other Financial Institutions Act, Cap B3 Laws of the Federation 2004.

    Akingbola was accused of granting “unsecured credit facilities” worth billions of naira to different companies, and of buying a London property at with 1.3million pounds taken from the bank’s Nostro account, among others.

    The case was first handled by Justice Charles Archibong, who struck out the charge for lack of diligent prosecution. EFCC appealed.

    Last May, the Supreme Court affirmed the Court of Appeal’s decision overruling Justice Archibong and directing Akingbola to face trial in the 10-year-old case.

    Justice Mojisola Olatoregun adjourned for continuation of trial.

  • Judge’s absence stalls trial of Akingbola

    A Federal High Court in Lagos on Tuesday adjourned until June 3, the money laundering trial of a former Managing Director of the defunct Intercontinental Bank Plc., Erastus Akingbola.

    The Economic and Financial Crimes Commission (EFCC) charged Akingbola with amended 22 counts  bordering on money laundering.

    He, however, pleaded not guilty on re-arraignment in March.

    The case, which was slated for continuation of trial on Tuesday, could not proceed as the judge was said to be on another official assignment.

    The EFCC accused the defendant of converting an aggregate sum of 1.3 million dollars and 8.5 million dollars, taken from the bank’s GBP NOSTRO account at Deutsche Bank in London.

    The sum was said to have been remitted into the account of Fuglers Solicitors with the Royal Bank of Scotland in London, to purchase property in the name of Life Boat Settlement Trust allegedly set up by the defendant.

    Read Also: Akingbola’s lawyer to court: EFCC’s witness lied

    According to the EFCC, the defendant knew that the sums represented proceeds of crime.

    The alleged offences contravene the provisions of Sections 105(1) and 105(a), of the Investment and Securities Act, 2007.

    They also contravene the provisions of Sections 13 (1), 15(1)(a) and 28(3) of the Banks and Other Financial Institutions Act, Cap B3, Laws of the Federation, 2004.

    One of the offences contravenes the provisions of Sections 14(1) of the Money Laundering Prohibition Act, 2004.

     

     

     

  • EFCC re-arraigns ex-Intercontinental Bank MD on money laundering

    The Economic and Financial Crimes Commission (EFCC) on Wednesday re-arraigned a  former Managing Director of the defunct Intercontinental Bank PLC, Erastus Akingbola in a Federal High Court in Lagos, for alleged Money Laundering charges.

    He is charged by the EFCC with amended 22 count charge bordering on the offence.

    He had pleaded not guilty to the charges.

    The prosecution had opened its case and its second witness, Mr Abdulraheem Jimoh is still been led in evidence.

    When the case was called on Wednesday, the prosecutor Mr Rotimi Jacobs (SAN) informed the court of an amended charge filed by prosecution.

    He urged the court to accept the charge and cause the plea of the defendant to be taken afresh.

    Akingbola was re-arraigned on the charge written Further Amended Charge, and marked FHC/L/443C/2009.

    In the charge, he was alleged to have between November 2007 and July 2008, while being the MD of Intercontinental Bank, caused to be created a misleading appearance of active trading in the shares of the bank in the Nigerian Stock Exchange (NSE).

    Read Also: EFCC arrests 24 for internet fraud, one for vote buying

    He was alleged to have been connected with the utilization of an aggregate sum of N179.4 billion of the bank’s fund, for the purchase of the bank’s shares, thereby inflating the rate of the bank’s shares on the NSE.

    He pleaded not guilty to the charges, on his re-arraignment, and after his plea was taken, trial continued.

    The witness an Investigator, who had earlier given evidence before the court, was cross examined by defence counsel, Chief Wole Olanipekun (SAN).

    When asked by defence if he recalls that in his statement before an Ikeja High Court he had testified writing the statement at the EFCC office, the witness replied “I can’t recall”

    The Court has adjourned until March 14 for continuation of trial.

    In the charge, the defendant was also accused of converting an aggregate sum of 1.3 million dollars and 8.5 million dollars, which sum was taken from the bank’s GBP NOSTRO account at Deutsche Bank in London.

    The sum was said to have been remitted into the account of Fuglers Solicitors with the Royal Bank of Scotland in London, to purchase property in the name of Life Boat Settlement Trust, set up by the defendant.

    According to the prosecution, the defendant knew that the sums represented proceeds of crime which includes stealing.

    The offences contravene the provisions of sections 105(1) and 105(a), of the Investment and Securities Act, 2007.

    It also contravenes the provisions of sections 13 (1), 15(1)(a), and 28(3) of the Banks and Other Financial Institutions Act, Cap B3, Laws of the Federation 2004.

    The offence also contravene the provisions of sections 14(1) of the Money Laundering Prohibition Act, 2004

    NAN

     

  • N5bn fraud: Supreme Court orders Akingbola to face trial

    The Supreme Court on Friday ordered a former Managing Director of the defunct Intercontinental Bank Plc, Dr. Erastus Akingbola, to face trial for alleged N5bn fraud charges.

    A five-man panel of the apex court led by Justice Tanko Muhammad, unanimously affirmed the February 2015 judgment of the Court of Appeal, which overturned the Federal High Court’s decision to strike out the charges.

    Justice Sidi Bage, who read the lead judgment, said Akingbola’s appeal challenging the Court of Appeal’s verdict lacked merit.

    He ordered that the case be taken back to the Federal High Court in Lagos, handled by another judge and given “expeditions trial.”

    The trial was stopped by Justice Charles Archibong, who struck out the 26-count charge, in April 2012.

    He held that the Economic and Financial Crimes Commission (EFCC) was not diligent in the handling of the case.

    The judge also described the EFCC prosecution team as a drain in the public purse and directed the then Attorney-General of the Federation to disband the team.

    Justice Archibong was later sent on compulsory retirement by the National Judicial Council (NJC) over the decision.

  • N164b debt: Court orders sale of Akingbola’s property on Cayman Island

    N164b debt: Court orders sale of Akingbola’s property on Cayman Island

    The Grand Court of the Cayman Islands has ordered former Intercontinental Bank Plc Managing Director Erastus Akingbola to pay Access Bank Plc N238,471,484,162.

    The court also entered judgment against Akingbola in the amount of £1,800,000 with interest at 2.5/8 per cent per annum from April 1.

    Justice Andrew Jones (QC) made the orders on September 12.

    He said the orders would be properly served if sent by courier to Akingbola at his Ikoyi address or through his lawyer, Chief Wole Olanipekun (SAN).

    The bank obtained judgment in a London High Court for N164 billion in July 2012 following a recovery action filed against Akingbola by the then Intercontinental Bank, later acquired by Access Bank.

    The bank said the money was part of its funds, which Akingbola allegedly converted and misappropriated fraudulently. During the course of the trial, some of the funds were traced to the purchase of property in London by Akingbola, following which the court ordered their sale.

    Based on the court orders, the property known as Flats 17, 18, 19 and 20 Embassy Court London, NW 8 were sold and  £11 million recovered.

    When it was discovered that Akingbola had assets on Cayman Island (specifically property known as 2 Cambridge Court), the bank filed an application to the Grand Court of the Cayman Island to convert the London judgment to a Cayman Island verdict.

    Following Akingbola’s alleged refusal to challenge the application, Justice Jones granted the default judgment.

    Delivering the verdict, the judge noted that “no notice of intention to defend” was filed by the defendant.

    The Federal High Court in Lagos had held that the London court judgment, which ordered Akingbola to pay the bank £654million, could not be enforced in Nigeria.

    The judge dismissed an application by Access Bank seeking to compel Akingbola to pay the money as ordered by the London court.

    A Lagos State High Court had also rejected a similar application.

    Justice Adedayo Oyebanji granted Access Bank’s request to register the London judgment.

    But, Akingbola, through his lawyers, filed an application dated September 27, 2013 asking Justice Babajide Candide-Johnson of the same court to quash the judgment registration for lack of jurisdiction.

    Justice Candide-Johnson subsequently discharged the ex parte order by Justice Oyebanji on the grounds that Access Bank’s bid contravened the Reciprocal Enforcement of Judgment Act of 1958.

    He also declared that the Lagos High Court lacked jurisdiction to register the judgment.

  • Akingbola: Court discharges N212.2b judgment debt registration

    A Lagos High Court, Igbosere, yesterday set aside the registration of the N212.2 billion judgment delivered against former Intercontinental Bank’s Managing Director, Erastus Akingbola, by a London court.

    Ruling in an application filed by Akingbola challenging the judgment enforcement order granted by Justice Adedayo Oyebanji in favour of Access Bank Plc, Justice Candide Johnson held that a Federal High Court, and not a State High Court, had jurisdiction to adjudicate on matters under Companies and Allied Matters Act (CAMA).

    Akingbola, in an application dated September 27, 2013, through his counsel, Wole Olanipekun (SAN), urged the court to discharge the judgment of a Lagos High Court, which allowed the enforcement of a foreign judgment against him.

    Justice Burton of a London Court ordered Akingbola to pay Access Bank N212.2 billion (£654 million) for his alleged fraudulent practices when he was in charge of the defunct Intercontinental Bank.

    To enforce the judgment in Nigeria, Access Bank, in an ex-parte application, urged Justice Oyebanji to grant registration of the judgment and the accompanying order of the foreign court, dated September 13, 2012.

    Although Justice Oyebanji granted the bank’s prayer, Akingbola appealed the decision before Justice Candide-Johnson.

    He argued that the State High Court lacked jurisdiction to preside over the matter.

    But Justice Candide-Johnson held that the suit instituted in the London court by Access Bank was under the exclusive jurisdiction of the Federal High Court.

    He averred that while it would not sit as an appeal on the foreign judgment, the court should not fail to examine the foreign judgment, especially when the jurisdiction of the court is challenged and in the overall interest of all the parties.

    Justice Candide-Johnson said: “I hold that the Lagos High Court lacks the jurisdiction to entertain, hear or determine any aspect of the foreign judgment as the content of the said judgment is under the purview of the Federal High Court.”

    The court also agreed with Olanipekun’s submission that when there is conflict between statutory provisions and the existing law, the Constitution takes precedence.

    At the last adjournment, Olanipekun argued that Access Bank failed to comply with condition precedent before the registration could be completed.

    The lawyer said the judgement of the foreign court, which was registered, was not certified, in compliance with the rules of the London court and was, therefore, invalid.

    He averred that Section 251 of the Constitution vests jurisdiction on the Federal High Court and not a State High Court.

    Olanipekun noted that the London suit was at the commercial and not criminal division which, to him, was an equivalent of Federal High Court in Nigeria.

    Opposing Olanipekun’s submissions, counsel to Access Bank, Olaniwun Ajayi (SAN), submitted that the stipulation that only the Federal High Court has jurisdiction to register foreign judgments should be discountenanced because the State High Court has unlimited powers to look into it.

    He argued that on registration and enforcement of foreign judgments, Cap 175 of 1958 and Section 272 of the Constitution empowers the State High Court to adjudicate on the matter.

    Ajayi said it would be against public interest if the court refused to enforce a “money judgement”, adding that Akingbola’s appeal against the judgment in London was refused.

     

     

  • Akingbola to be re-arraigned March 24

    Akingbola to be re-arraigned March 24

    An administrative mix-up yesterday forced a Lagos High Court sitting in Ikeja, presided over by Justice Lateef Lawal-Akapo, to adjourn the re-arraignment of a former Managing Director of defunct Intercontinental Bank Plc, Mr Erastus Akingbola, till March 24, 2014.

    Justice Lawal-Akapo fixed March 24, 25 and 27 for the re-arraignment and commencement of Akingbola’s trial, following the mix-up that led to the omission of his case in the course list for yesterday’s proceedings.

    Akingbola and his co-defendant, Bayo Dada, were present in court but the judge said the matter was not listed.

    Counsel to the Economic and Financial Crimes Commission (EFCC), Mr. Godwin Obla, admitted that it was not proper to arraign the defendants since the case was not listed for the day.

    Akingbola and Dada were charged with alleged stealing of N47.1 billion belonging to the defunct Intercontinental Bank.

    They are facing a 22-count charge of stealing and obtaining money by false pretences.

    Akingbola and Dada had pleaded not guilty to the 22 count charges of stealing preferred against them by the commission, when the case began.

    The two were arraigned on May 31, 2011 before Justice Habeeb Abiru but the judge was elevated to the Court of Appeal and the matter was re-assigned to Justice Adeniyi Onigbanjo.

    The defendants were re-arraigned on February 26.

    Their case file was again transferred to Justice Lawal-Akapo, following the recent changes in the Lagos Judiciary: Justice Onigbanjo was moved to the Commercial Division of the court.

  • Akingbola loses bid to stop trial of N47.1b theft charge

    Akingbola loses bid to stop trial of N47.1b theft charge

    Former Vice-President of Intercontinental Bank Plc, Erastus Akingbola has lost in his bid to quash theft charges of N47.1 billion brought against him by the Economic and Financial Crimes Commission (EFCC).

    Justice Adeniyi Onigbanjo of a Lagos High Court, Ikeja, dismissed Akingbola’s application for want of charges,holding that Akingbola’s application is lacking in merit.

    The EFCC had charged Akingbola and the General Manager of Tropics Securities Limited, Mr Bayo Dada, to court for allegedly stealing the money belonging to the bank.

    The former boss of Intercontinental Bank in an application filed by his counsel, Chief Wole Olanipekun, (SAN) on July 10, Tthis year, prayed the court to quash the charges preferred against him by the Commission.

    He had submitted to the court that there was not enough proof of evidence to link Akingbola to any of the counts in the charge brought against him by the commission

    Olanipekun had argued that since the EFCC failed to obtain a fiat from the Lagos State Attorney-General, it lacked the power to initiate criminal proceedings against his client at the State High Court.

    But EFCC counsel, Mr Emmanuel Ukala (SAN), opposed the application and urged the court to dismiss it.

    But the trial judge, Justice Onigbanjo in his ruling, said that the Appeal Court had held that the EFCC was qualified to institute criminal proceedings under Section 211 of the 1999 Constitution.

    Onigbanjo also recalled that the Court of Appeal, while ruling on a previous appeal filed by Akingbola against the ruling of the former trial judge, Justice Habeeb Abiru, settled the issue of whether or not the defendant should answer the charges preferred against him by the EFCC.

  • Akingbola asks court to quash theft charge

    Akingbola asks court to quash theft charge

    A former Managing Director of the defunct Intercontinental Bank Plc, Erastus Akingbola, on Wednesday asked a Lagos High Court, Ikeja, to quash the N47.1 billion theft charge preferred against him.

    Akingbola made the request in an application dated July 4, which was filed by his counsel, Chief Wole Olanipekun (SAN), before Justice Adeniyi Onigbanjo.

    The News Agency of Nigeria (NAN) reports that Akingbola is being prosecuted alongside Bayo Dada, the General Manager of Tropics Securities Limited.

    They were arraigned by the Economic and Financial Crimes Commission (EFCC) for allegedly stealing the money belonging to the bank.

    Moving the application, Olanipekun asked the court to strike out the charge against his client dated May 4, 2011, which was brought in the name of the Federal Republic of Nigeria.

    Olanipekun said the accused persons were charged to court by the EFCC for stealing under Section 390(7) of the Criminal Code, Laws of Lagos State, 2003.

    According to him, the EFCC has no power to prosecute accused persons in a state high court, without a valid fiat issued to the agency by the state’s attorney-general.

    He said: “Section 211 of the 1999 Constitution of the Federal Republic of Nigeria gives the attorney-general of the state power to initiate criminal proceedings in the state high courts and other lower courts.

    “We are talking about a constitutional issue, we are talking about a fundamental issue; we are talking about a recondite issue.

    “We are saying the Federal Government cannot prosecute a case of stealing before a Lagos High Court under the Lagos State Criminal Code.

    “If Your Lordship overrules us on this issue, it means the Federal Government can come before the state high court to prosecute a case of reckless driving or environmental offences.”

    Olanipekun further argued that the proof of evidence did not disclose the offence of stealing against Akingbola.

    However, the EFCC counsel, Mr. Emmanuel Ukala (SAN), urged the court to dismiss the application.

     

  • Court denies Akingbola leave for treatment abroad

    An Ikeja High Court on Thursday denied a former Managing Director of Intercontinental Bank Plc, Erastus Akingbola, the permission to travel abroad for medical treatment.

    Justice Adeniyi Onigbanjo, in a ruling on Akingbola’s application, held that the accused had not provided sufficient evidence that the ailment could not be treated in Nigeria.

    The News Agency of Nigeria (NAN) reports that Akingbola is being prosecuted alongside Bayo Dada, the General Manager of Tropics Securities Ltd.

    They are charged to court by the Economic and Financial Crimes Commission (EFCC) for allegedly stealing N47.1 billion belonging to Intercontinental Bank (now Access Bank Plc).

    Akingbola had filed the application on March 19 and sought the court’s permission to keep a medical appointment at a Harley Street Hospital, London, United Kingdom, on April 15.

    The EFCC had, however, opposed the application and urged the court to dismiss it because Akingbola had failed to prove that his ailment could not be treated by a Nigerian hospital.

    Dismissing the application, the judge agreed with the EFCC, adding that he could not exercise discretion in Akingbola’s favour because of the peculiar nature of his case.

    Onigbanjo said: “The first defendant (Akingbola) failed to disclose any current serious medical condition that will make the court to grant this application.

    “There is no evidence that he consulted any specialist hospital in Nigeria before making the application.

    “He failed to attach a medical report from a Nigerian specialist hospital that the ailment can only be treated outside the country.”

    The judge further noted that Akingbola’s case was nearly concluded by the former trial judge, Justice Habeeb Abiru, before he was elevated to the Court of Appeal.

    Onigbanjo said that since the matter was starting de novo (afresh), he was therefore wary of making any order that could jeopardise Akingbola’s appearance in court.

    “Having full knowledge of the prosecution’s case may provide an incentive for the first defendant to take to flight and frustrate the fresh trial.

    “The offence for which he is being charged is grievous,’’ he said.

    The judge said it was therefore erroneous for Akingbola to assume that he had a legal right to seek medical attention anywhere he wanted.

    However, Onigbanjo relaxed the bail term, which requires Akingbola and his co-defendant, to report every first working day of the week at the EFCC’s office.

    He directed that the accused should henceforth report at the commission’s office only on the first and third Fridays of every month, and adjourned the matter to July 10 for trial.