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Nigeria: N49.3m Fraud - Ex-Trade Bank MD Clears Jimoh Ibrahim
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Leadership (Abuja)
14 May 2008
Posted to the web 14 May 2008
Osunde Adesuwa
Abuja
Former managing director of the defunct Trade Bank, Mr. Tunji Adeniyi, has exonerated the chairman of Global Fleet, Mr. Jimoh Ibrahim, from any wrong-doing in the payment of N49.3 million to him by the then management, saying he followed due process in releasing the funds.
The Securities and Exchange Commission (SEC) had, in its presentation before the public hearing organized by the House of Representatives' joint Committee on Capital Market and Banking and Currency, accused Jimoh Ibrahim of fraudulently collecting the said sum from the failed bank and urged the committee to ensure that he refunds the money.
But Mr. Adeniyi, who appeared before the extended public hearing yesterday, said the money was paid as commission to Mr. Ibrahim as part of the terms of a business transaction entered into between Trade Bank and Global Fleet Ltd, a company owned by Mr. Ibrahim.
The former MD said that Mr. Ibrahim was abroad with his family for a holiday when he was approached by the management of the bank to invest with them.
"He (Jimoh) then gave his terms as follows, which Trade Bank accepted: That the bank would foot his return ticket to Nigeria to the cost of the transaction, and since the transaction did not involve his stockholders, he also requested that all commission that would have been paid to them be paid to him."
He explained that the bank accepted the terms then because "Ibrahim and Global Fleet would have been the messiah of Trade Bank."
According to him, the rationale behind the agreement was borne out of "the growing concern and desire to stay alive and for its about 600 staff, adding that the amount was then within the budget and approved structure of the bank."
Adetunji explained that a proposed merger with Afribank failed to scale through as the primary owners reneged to go to the market; hence the need arose for Jimoh Ibrahim to return the commission since the transaction failed.
"The primary owners reneged to go to the market at the last minute. At about 4.38pm of the last day before the consolidation, a fax came from Ilorin notifying us that the promised and advertised merger with Afribank would no longer come."
"Jimoh Ibrahim should have returned the money since the transaction was aborted. Though he claimed he had expended money, he should have returned at least the commission on moral grounds."
"Due process was followed and the case has been taken up by EFCC where Jimoh Ibrahim admitted to collecting the money."
Adetunji then requested that the joint committee absolve him of any blame as the "the entire board of the bank was involved in the transaction. Even the chairman of the board capitalisation was present," he said, stating, "I did my job diligently and professionally and followed all the rules. It is my request to this honourable committee that I should be exonerated. I was to see the consolidation through but the owners didn't support the consolidation."
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He said on the status of the bank, it had been acquired on a "purchase and absorption" basis, adding that all shareholders had been paid their money.
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