Federal government not to re-charge ex-Gulf Bank MD, others over alleged N15.7 billion fraud

The Federal Government has re-indicted a former director of the defunct Gulf Bank Plc, Johnson Adeyeba; a Briton, Gareth Wilcox and four others before the Federal High Court in Lagos over an alleged N15,761,176.24 billion fraud.

Adeyeba and Wilcox were arraigned before Justice Daniel Osiagor, along with a former Managing Director and Executive Officer of the bank, Babajide Rogers, the Managing Director of Ibom Power Company, Lyk Engineering Company, and a lawyer, Mr Uche Uwechia, who is the former was a legal advisor. and secretary of the defunct Gulf Bank Plc.

The defendants were charged with an amended 28-count indictment bordering on theft and fraud.

The defendants were charged, among other things, with fraud, appropriating various sums of money from a defunct Gulf Bank to use Ibom Power Company and Lyk Engineering Limited, bridging loan facilities and taking overdrafts without due process .

Adeyeba, Rogers and Uwechia, along with others at large, were accused of recklessly extending a loan of N450 million to Ibom Power Company Limited without adequate security and contrary to accepted practice.

Upon resumption of the case, the prosecutor, Rotimi Jacobs (SAN), told the court that the charges were first filed in 2013 and had suffered several setbacks.

Jacobs also informed the court that the suspects allegedly committed the offenses on April 1, 2001 in Lagos.

He further alleged that the third defendant, despite being indebted to the Gulf Bank, deliberately made a statement denying the liability of the fourth and fifth defendants in respect of the dollars and Naira loans extended to them by the ter defunct Gulf Bank PLC, knowing the same thing would happen. false, to prevent the repayment of the loan granted.

The first, second and sixth defendants are alleged to have recklessly extended a $20 million bridging loan to Ibom Power Company Limited on December 24, 2002 without adequate security, contrary to standard practice.

The first to third defendants also allegedly extended a loan of $9.2 million, N150 million and N10 million to Ibom Power Company Limited on the same day.

Further, Adeyeba, Rogers and Uwechia are said to have extended a loan of N1,454,000,000 to Lyk Engineering Company Limited on April 25, 2001.

On the same day, Wilcox, while the Managing Director of Ibom Power and Lyk Engineering Companies, limited, while indebted to the bank, deliberately made a statement in the bond of the set stamped only for the said N10 million, knowing this was false. to avoid repayment of the loan granted to him.

Sometime in January 2001, they are also said to have extended a loan facility of $17 million to Lyk Engineering Company Limited for the payment of Lyk Engineering Company’s share contribution in Ibom Power Company, without security as normally required by the Bank’s regulations.

Between January 2001 and 2004, Adeyeba, Rogers and Uwechia allegedly negligently extended a loan of $1.8 million to Lyk for the operating and administrative costs of Lyk Engineering Company Limited in Ibom Power Company Limited.

The six defendants are said to have between 2003 and 2004 converted the total of N1.8 billion illegally taken from the then Gulf Bank of Nigeria Plc and paid Lyk Engineering company for its operational and administrative costs, the amount they had paid. knew it represented the proceeds of crime.

Adeyeba, Rogers and Uwechia were further charged with recklessly providing a $9.1 million loan facility for the payment of consultancy firms, conceptual design, railway designs and soil investigation for a non-existent refinery project for Lyk Engineering Nigeria Company Limited, Lyk Corporation and Centum . Overseas limited.

They are also said to have, between April 1, 2001, December 24, 2002, August 8, 2003 and some other dates, fraudulently used their various positions to convert the sum of N15, 761,176.24 into financing their private companies.

The defendants are also alleged to have used their positions to defraud the defunct bank of the said amount to fund the British companies.

At the same time, the two are also said to have used the money to buy a ship and finance a non-existent refinery.

It was specifically alleged that Adeyeba also fraudulently converted into his personal properties two plots of land, Plot 22 and 23 Zone K, Federal Government Division, Banana Island, Lagos State, with certificate of occupancy numbers 27/27/96 and 7/7 /96 dated June 20, 2003, owned by the defunct bank.

The lawyer, Uwechia, is said to have helped the former bank chairman convert the said lands into his personal properties. The value of the land is estimated at N600m.

According to the prosecutor, the offenses are contrary to Section 15(1)(c) (2) and (3) of the Failed Banks (Debt Recovery) and Financial Malpractice in Banks Act Cap F2,2010 and punishable under Section 16 (1), (2),18(1)(2) and 19(4) of the bankrupt banks (debt recovery and financial malpractice.

However, the suspects pleaded not guilty to the charges.

Judge Osiagor adjourned the case to December 13 for trial.