The Nation Newspaper

Tag: Union Bank

  • EFCC opposes ex-Union Bank director’s bid to halt trial

    The Economic and Financial Crimes Commission (EFCC) yesterday opposed a bid by a former director of Union Bank Plc, Niyi Opeodu to stay proceedings in his criminal trial.

    Opeodu and three former directors Henry Onyemem and Samuel Anyininuola were charged along with the bank’s former Managing Director Barthlomew Ebong.

    EFCC alleged that they unlawfully granted loan facilities to themselves without security and above the approved limit without lawful authority from the Central Bank of Nigeria (CBN).

    About N83.67billion bank funds were alleged to have been used.

    They were also alleged to have granted credit facilities to Falcon Securities, in connivance with its Director Peter Ololo, without collateral. Ololo is also standing trial.

    Opeodu, through his lawyer Chief Wole Olanipekun (SAN) had urged the Federal High Court in Lagos, presided over by Justice Rita Ofili-Ajumogobia, to quash the charges.

    The court, however, dismissed the application, saying the third defendant should face trial.

    However, Opeodu appealed against the ruling at the Court of Appeal in Lagos.

    Yesterday, his lawyer urged Justice Ofili-Ajumogobia to halt further proceedings pending the hearing and determination of the appeal.

    But EFCC’s lawyer Kola Awodein urged the court to dismiss the application.

    He said the defendant is using technicalities to delay the case.

    According to him, Section 40 of the EFCC Act states that the court should not entertain such application in a criminal trial.

    “The court should not exercise any discretion to grant stay of proceedings. If it’s the prosecution that is delaying, the court is entitled to strike out the matter.

    “I urge your lordship, with respect, to refuse the application and to dismiss it,” Awodayin said.

    The defendants were re-arraigned in November 15, 2012.

    Olanipekun had challenged the validity of the charge against his client (third accused), saying it disclosed no cause of action.

    The judge, however, held that the charge sufficiently disclosed a cause of action against Opeodu, a decision the defendant appealed against.

    The defendants are among bank chiefs sensationally removed by CBN Governor Sanusi Lamido Sanusi in August 2009.

  • Trial of ex- Union Bank executives adjourned

    A Federal High Court in Lagos on Friday adjourned till February 17, the trial of some former executives of Union Bank Plc, charged with money laundering.

    The accused are a former managing director of the bank, Barthlomew Ebong; Henry Onyemem, Niyi Opeodu and Samuel Anyininuola, former directors of the bank.

    They are charged by the Economic and Financial Crimes Commission (EFCC) alongside a company, Falcon Securities Limited and its Director, Peter Ololo, on 20 count-charge of money laundering.

    At the resumed hearing of the case on Friday, the prosecutor, Mr. Kola Awodehin (SAN), informed the court of a pending motion filed by the third accused for stay of proceedings.

    He, however, informed the court that the prosecution had filed a counter affidavit and preliminary objection to the motion for stay, adding that the third accused just served him with a reply on Friday.

    He, therefore, prayed the court for adjournment to enable him to study the counter affidavit to the processes filed by third accused person.

    Counsel representing the third accused person, Dr. Dapo Olanipekun, said that his reply was actually served on the prosecution in court on Friday and that he had no objection to the request for adjournment.

    Justice Rita Ofili-Ajumogobia consequently adjourned the case to February 17 for continuation of trial.

    The News Agency of Nigeria (NAN) recalls that the accused were re-arraigned on November 15, 2012.

    They were alleged to have granted loan facilities to themselves without security and above the approved limit, without lawful authority from the Central Bank of Nigeria.

    Ebong and other executives of the bank were also alleged to have granted several credit facilities to Falcon Securities, in connivance with its Director, Ololo, without collateral.

     

     

  • Union Bank takes services to Lagos trade fair

    Union Bank of Nigeria (UBN) Plc has opened an outlet for its full range of services and products at the ongoing Lagos International Trade Fair.

    In a statement, the Head, Corporate Affairs, Union Bank of Nigeria (UBN), Mr Francis Barde, said the bank has consistently participated in major international trade fairs and won several awards for its services and products at the fairs.

    According to him, as a way of harnessing trade potentials for an inclusive economy, the bank is parading an impressive array of e-products using POS terminals, internal transfers -account to account; Card transactions for bills payments and Union mobile for commerce as well as ATM services.

    “In order to ensure that customers get reliable service, the bank recently injected 300 ATMs and stabilized its uptime at 98 per cent as rated by Interswitch. Others are corporate pay, internet banking, Pay direct, Pay4me and pay outlets for cashless transactions. Union galaxy is an e-payment platform that has both e-payroll e-payment and collection platforms that big, small companies and government ministries, departments and agencies can deploy to seamlessly manage their payments. The distribution and service industry can also use it for bills collection nationwide,” Barde stated.

    He noted that with more than 60 companies and multinationals already on board the Union Galaxy, other companies should take advantage of the product, which is rated as one of the best platforms in the financial services industry.

    He added that in addition to its traditional products, the bank would also display value creating products and services for its numerous existing and prospective customers.

    “Also, small, medium and large scale farmers, agro- allied companies who desire soft loans to purchase harvesters for the season would take advantage of seamless process of documentations that would lead to loan disbursement. This is in addition to advisory services on imports, oil and gas, sold minerals as well as well as foreign exchange transactions,” Barde said.

     

  • Samsung, Union Bank partner on solution

    The Managing Director, Samsung Electronics West Africa Mr Bravo Kim has said it partnered with Union Bank to make the bank different from others in offering customers technology-driven services that redefines their banking experience.

    The managing director, who spoke over the weekend in Lagos at the unveiling of ‘’Bank of Future (BoF)’’ solutions designed by the electronics company for the money deposit bank (MDB), said the solution is an interactive self-service solution that focuses on gaining an in-depth knowledge of the individual customers of the bank to meet their unique needs.

    He added that BoF will ensure that customers are well informed and better engaged whenever they come into the banking halls and are attended to, leaving them with a unique customer experience that is deeplysatisfying.

    “Samsung’s Bank of the Future Solution will differentiate Union Bank from the rest and create a niche for the bank. Customers coming into the banking hall will be well informed about operations, and various products offerings in a way they will not easily forget,” he said at the Silverbird Galleria branch of the bank, venue of the event in Lagos.

    According to him, the BoF revolves around three core principles which are that the banking space is designed to allow personnel opportunity to converse with customers readily in a variety of ways; facilitate relationship and enhance connection to the wider and significant network of the bank, and to enhance the ease and efficiency of the banking process.

  • Union Bank announces N11.3bn half-year profit

    Union Bank announces N11.3bn half-year profit

    Union Bank of Nigeria Plc made a profit after tax of N11.3bn in the half-year period ended June 30, 2013.

    A statement from the bank on Thursday said the figure represented a 52 per cent increase from the N7.5bn it reported for the same period in 2012.

    The bank’s Head, Corporate Affairs, Mr. Francis Barde, said in the statement that the bank recorded the gross earnings of N48.1bn in the period under review, up by five per cent from N46.0bn made in the same period in 2012; while the group earned gross earnings of N56.2bn.

    It added that the bank’s profit before tax was N11.6bn for the first half of 2013, indicating a 54 per cent rise from what it made in the first half of 2012, while group profit before tax was N9.8bn. Group profit after tax was N9.4bn.

    The Group Managing Director, Union Bank, Mr. Emeka Emuwa, was quoted as saying, “In the second quarter of 2013, Union Bank stayed the course of profitability. We are pleased with this continued profitability as we manage the many elements of our transformation programme and work hard towards achieving our goal of building a reliable, customer-focused institution.”

    The Executive Director and Chief Financial Officer, Mr. Oyinkan Adewale, said the second quarter profitability was due to a combination of cost management measures and certain non-recurring items

  • Union Bank announces N11.3bn half-year profit

    Union Bank announces N11.3bn half-year profit

    Union Bank of Nigeria Plc made a profit after tax of N11.3bn in the half-year period ended June 30, 2013.

    A statement from the bank on Thursday said the figure represented a 52 per cent increase from the N7.5bn it reported for the same period in 2012.

    The bank’s Head, Corporate Affairs, Mr. Francis Barde, said in the statement that the bank recorded the gross earnings of N48.1bn in the period under review, up by five per cent from N46.0bn made in the same period in 2012; while the group earned gross earnings of N56.2bn.

    It added that the bank’s profit before tax was N11.6bn for the first half of 2013, indicating a 54 per cent rise from what it made in the first half of 2012, while group profit before tax was N9.8bn. Group profit after tax was N9.4bn.

    The Group Managing Director, Union Bank, Mr. Emeka Emuwa, was quoted as saying, “In the second quarter of 2013, Union Bank stayed the course of profitability. We are pleased with this continued profitability as we manage the many elements of our transformation programme and work hard towards achieving our goal of building a reliable, customer-focused institution.”

    The Executive Director and Chief Financial Officer, Mr. Oyinkan Adewale, said the second quarter profitability was due to a combination of cost management measures and certain non-recurring items.

  • Union Bank assures investors of better returns

    Union Bank assures investors of better returns

    UNION Bank of Nigeria Plc has assured investors of better returns.

    Group Managing Director/Chief Executive of the bank, Mr Emeka Emuwa, gave this assurance last Friday at the bank’s Facts behind the Figures at the Nigerian Stock Exchange (NSE).

    He noted that the bank’s capital adequacy ratio, which stands at 20 per cent is an improvement on that of 2011, which was 19 per cent but well above the 15 per cent regulatory requirement. This, he said, has put the bank in a better position in the financial industry.

    He said reliability is at the core of the bank’s strategy and transformation programme, adding that the lender is ready to give better returns to the investors. “As we build consistency, this will translate to returns for investors. We are out of the emergency room, stabilised and generally regaining our strength,” he said.

    The Union Bank boss said the lender will leverage on its network of 337 branches and its past heritage into the future by modernising its brand and operational base to meet the demands of its customers.

    According to him, with the board’s repositioning plan in place and the injection of $500 million in September 2012, by its core investors, Union Global Partner Limited (UGPL), the bank has stabilised and returned to profitability.

    On the insinuation about the likely exit of the core investors, he assured that with their 65 per cent shareholding, they will not exit the bank in the foreseeable future.

    “The UGPL recapitalised the bank. They are long-term investors and they are bringing value to the bank. Capital does not exit from the bank but may change ownership,” he said.

    The GMD said: “With a seven-pillar transformation programme in place in the year, leveraging on its business model, people and culture and its risk management amongst others, the bank is set to take its rightful place in the banking industry.

    “As part of the on-going Enterprise Transformation Programme, there is a new operating model for our branches. The new model is designed to allow branches to give dedicated focus to marketing and relationship management.

    “On the operational side, we will ensure the integrity of the bank’s accounting and financial reporting systems and that appropriate controls are in place, in particular, systems for monitoring risk, financial probity, and compliance with the law.

    “The corporate governance structure will be built around enhancing transparency and accountability. Steps had also been taken to increase the ratio of our market-facing staff in the new system. The organisational structure of the bank will be changed to reflect the new expectations. Our branches will be upgraded to be customer friendly in physical ambiance as well as working tools.”

    Union Bank’s balance sheet for the 2011 financial year through December, showed positive net assets of N197 billion compared with negative net assets of N115.7 billion a year earlier.

    Earlier, the Chief Executive Officer of the Exchange, Mr Oscar Onyema, commended the management of the bank for returning the institution to profitability and adhering to sound corporate governance in its operations.

  • Court orders Union Bank to refund N34m to firm

    Court orders Union Bank to refund N34m to firm

    Justice Morenike Obadina of a Lagos High Court has ordered Union Bank of Nigeria Plc to pay N34 million ($217, 381.05) to one Prince Nwokocha Ezikpe and his company Felimex Nigeria Limited, being the total sum of money debited from the claimants’ account.

    The court held that the money debited from the claimants’ account with Union Bank was not remitted as expected as payment for the series of transactions between the claimants and their foreign business partners.

    Justice Obadina held that Union Bank did not supply any documentary proof from its own record of remittance of the funds to the Central Bank of Nigeria.

    ‘’No bank entries, email correspondence, letter, fax messages or any document to trace the movement of the funds from the defendant to the CBN was pleaded or tendered’’, the court held.

    Therefore, Justice Obadina held that the claimant’s established their entitlement to the reliefs sought as the funds debited from their count were meant for remittance to the CBN and to their foreign partners were not remitted.

    Justice Obadina stated further that contrary to the submissions of defendant’s counsel in his address, the claimants were not relying on the weakness of the defence in establishing their claim.

    She maintained that the burden of proof of the remittance was on the defendant and that the defendant failed to discharge that burden.

    She stated ‘’it is my finding that the claimants are entitled to judgment. I enter judgment for the claimants for the sum of USD 217, 381. 05 or its naira equipment at the prevailing exchange rate being the sum of money debited from the claimants’ account held with the defendant which the defendant did not remit as expected as payment for series of transactions between the claimants’ and their foreign business partners.’’

    Consequently, the court awarded the sum of N3 million in favour of the claimants for breach of contract and for money received since 1983.

    However, Justice Obadina refused the request of the claimants for an interest of 19 percent at prevailing exchange rate.

    The case of the claimant is that Felimex Merchantile Nigeria Alliance and Sobatex International operated an account with the Aba branch of the defendant in the name of Felimex Merchantile Nigeria Alliance.

    The two enterprises were later incorporated into a limited liability company known as Felimex Nigeria Limited.

    In the course of normal banking relationship the claimants’ account was debited in the sum of $217, 381.05 in seven installments for remittance to the Central Bank of Nigeria (CBN) for goods imported by Felimex Merchantile Nigeria Alliance.

    It was further alleged that the funds were not remitted to CBN as agreed and the claimant requested for proof of remittance as CBN denied receiving the remittances.

  • Court orders Union Bank to refund N34m to firm

    Justice Morenike Obadina of a Lagos High Court has ordered Union Bank of Nigeria Plc to pay N34 million ($217, 381.05) to one Prince Nwokocha Ezikpe and his company Felimex Nigeria Limited, being the total sum of money debited from the claimants’ account.The court held that the money debited from the claimants’ account with Union Bank was not remitted as expected as payment for the series of transactions between the claimants and their foreign business partners.

    Justice Obadina held that Union Bank did not supply any documentary proof from its own record of remittance of the funds to the Central Bank of Nigeria.

    ‘’No bank entries, email correspondence, letter, fax messages or any document to trace the movement of the funds from the defendant to the CBN was pleaded or tendered’’, the court held.

    Therefore, Justice Obadina held that the claimant’s established their entitlement to the reliefs sought as the funds debited from their count were meant for remittance to the CBN and to their foreign partners were not remitted.

    Obadina stated further that contrary to the submissions of defendant’s counsel in his address, the claimants were not relying on the weakness of the defence in establishing their claim.

    She maintained that the burden of proof of the remittance was on the defendant and that the defendant failed to discharge that burden.

    Consequently, the court awarded the sum of N3 million in favour of the claimants for breach of contract and for money received since 1983.

    However, Justice Obadina refused the request of the claimants for an interest of 19 percent at prevailing exchange rate.

    The case of the claimant is that Felimex Merchantile Nigeria Alliance and Sobatex International operated an account with the Aba branch of the defendant in the name of Felimex Merchantile Nigeria Alliance.

    The two enterprises were later incorporated into a limited liability company known as Felimex Nigeria Limited.

    In the course of normal banking relationship the claimants’ account was debited in the sum of $217, 381.05 in seven installments for remittance to the Central Bank of Nigeria (CBN) for goods imported by Felimex Merchantile Nigeria Alliance.

    It was further alleged that the funds were not remitted to CBN as agreed and the claimant requested for proof of remittance as CBN denied receiving the remittances.

    The bank further argued that the funds were transferred to CBN but the apex bank did not provide the foreign exchange applied for and that the funds were later returned to the bank.

    The defendant (Union Bank) contended that the suit is statue barred and that the money debited from the claimants’ account were transferred to the CBN.

    In addition, the bank stated that the non-remittance of the funds was due to non provision of foreign exchange by the CBN and not to any fault of the defendant.

  • Bank chief sued over alleged N459.4m debt

    Union Bank Plc has asked an Abuja High Court to compel a director with Keystone Bank Plc, Maude Aminun-Kano to repay a loan he allegedly  took in 2010.

    It said Aminun-Kano, who  deployed the loan to the purchase of a property in Ikoyi, Lagos, has allegedly neglected to repay the loan.

    Union Bank stated this in  a counter-claim its lawyer, Chimezie Ojiabo filed against a suit by Aminun-Kano.

    The bank averred that Aminun-Kano got a loan of N260 million from it to buy a five bed-room detached house with guest chalet and four room boys quarters located at No 3c Bank Road, Ikoyi, Lagos under the presidential implementation committee on Federal Government Landed Property Scheme.

    It further averred that as at close of work on October 8 last year, Aminun-Kanu’s alleged  total indebtedness, on account of the loan, stood at N459,443,799.29.

    Union Bank denied that Aminu-Kano was  willing to pay the loan. It also denied that any of its  management staff was negotiating with the bank director.

    The bank denied claim that Aminun-Kanu was making plans to repay the loan.

    It stated that seven months after the expiration of the date of repayment, he asked for interest waiver on the loan and in response the bank gave him a concession and asked him to pay N310 million within 60 days as full and final settlement of his indebtedness.

    Union Bank said Aminun-Kano failed to take advantage of the concession granted him, following which the bank appointed Chikwendu Madumere as a debt recovery agent to recover the debt.

    It said despite a letter of demand written to him by Madumere, Aminun-Kano persisted in not repaying the loan.

    “The plaintiff does not want to repay the loan and does not want the bank to realise the security for the loan,” Union Bank stated.

    It described his suit as a “design to use the instrumentallity of the court to frustrate the bank and avoid his obligation to the bank.”

    Aminun-Kano had sued the bank as it began to take steps to sell the property to defray the indebtedness.

    Aminun-Kano claimed in his suit that Union Bank was not entitled to sell the property because the bank’s management was still negotiating with him.

    He prayed the court to order the bank to pay him N5 million as general damages for breach of understanding and inconveniences suffered by him.

    Aminun-Kano further prayed  the court to compel the bank to return to him the certificate of occupancy (C of O) in respect of his house in Abuja, which he used as collateral for the loan.

    Justice Hussain Baba has fixed further hearing for April 25.