The Nation Newspaper

Tag: Intercontinental Bank

  • EFCC: Akingbola used Intercontinental Bank’s N10b to clear personal debt

    The Federal High Court in Lagos yesterday heard that former defunct Intercontinental Bank Managing Director Dr Erastus Akingbola allegedly repaid a personal debt using the bank’s N10billion.

    An Economic and Financial Crimes Commission (EFCC) investigator Abdulraheem Jimoh told the court how he uncovered the alleged fraudulent transaction.

    He was testifying as the second prosecution witness in Akingbola’s trial before Justice Mojisola Olatoregun-Ishola.

    Jimoh, led in evidence by the prosecuting counsel Rotimi Jacobs (SAN) said: “The management of the bank gave me a letter dated May 8, 2009 from Tropics Securities Nigeria Limited, a company owned by Dr Erastus Akingbola, his wife and some other shareholders.

    “The letter was addressed to the Group Managing Director Dr Erastus Akingbola and was signed by a Mr Bayo Dada and one Jackson.

    “The letter was claiming payment amounting to N10billion for shares purported to have been bought by the bank.”

    The investigator said based on the letter, Intercontinental Bank issued three cheques amounting to N10billion in favour of Tropics Securities.

    “Upon further investigation, I discovered that the cheques were cleared in Access Bank for Tropics Securities Nigeria Limited and Tropics Properties Limited.

    “Dr Akingbola has substantial interests in these firms.

    “Further investigations revealed that the money was used to clear Dr Akingbola’s indebtedness to Access Bank.”

    Asked whether the N10billin was a loan from Intercontinental Bank to Akingbola, the witness said: “There was no loan granted to any of the companies or Dr Akingbola but they claimed it was for shares.”

    The 10-year-old case began afresh following the Supreme Court’s dismissal of an interlocutory appeal by Akingbola.

    In the 26 count charge, the prosecution alleged that while he was Managing Director and Chief Executive Officer of Intercontinental Bank, Akingbola, between November 2007 and July 2008, approved a credit facility of N8billion each to Soo-Kok Holding Limited, Tofa General Enterprises, Cinca Nigeria Limited;l, Harmony Trust and Investment Limited and Stanzus Investment Limited.

    EFCC said the illegal transactions were carried out between May 2008 and May 2009 in contravention of “accepted practice or Intercontinental Bank Plc’s regulations.”

    It said Akingbola violated Section 15(1)(a)(i) of the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, Cap F2, Laws of the Federation of Nigeria, 2004 and was liable to be punished under Section 16(1)(a) of the same Act.

    The prosecution alleged that under Akingbola’s watch, Intercontinental Bank had N87.6billion non-performing credit burden.

    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 Central Bank of Nigeria (CBN) in compliance with Section 13(1) of the Banks and Other Financial Institutions Act, Cap B3 Laws of the Federation 2004.

    Akingbola pleaded not guilty.

    Trial continues today.

     

  • 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.

     

  • Intercontinental Bank not involved in share buy-back’

    Former Managing Director, Intercontinental Bank Plc, Erastus Akingbola, told a Lagos High Court in Ikeja yesterday that the leander was not involved in any share buy-back.

    Akingbola said this while he was being cross-examined by counsel to the Economic Crimes and Financial Crimes Commission, Emmanuel Ukala, SAN.

    He stated that there was no truth in the assertion of the prosecution that the bank bought back its own shares.

    The former bank chief, is standing trial, along with Bayo Dada, for alleged theft of N49.1billion belonging to the bank.

    Akingbola also said there is no book on the much talked about standard banking practice.

    Akingbola who was responding to questions by EFCC counsel, Ukala on how funds are usually transferred according to “standard banking practice,” said he has never seen any such book in his almost 40 years of practice as a banker.

    “For about 4o years I have been in banking. I have never seen any book on standard banking practice.

    “You can either write or give verbal instruction. The onus is on the fellow carrying out the instruction to think of whether he or she can trust the person who is giving the oral instruction.