Idris Ahmed
14 July 2008
The Investment and Securities Tribunal (IST) has shut down 30 finance companies popularly known as 'wonder banks' from operating as fund managers.
The order follows a request by the Securities and Exchange Commission (SEC), for their closure because they are not authorized.
A statement yesterday by the Head, Public and International Affairs of IST, Kenneth Ezea, stated that the Tribunal also barred the companies from operating and withdrawing money from their accounts in all banks and companies in Nigeria.
SEC had instituted a suit against these institutions in November 2007, accusing them of soliciting, advertising and inviting the public to deposit funds with them, promising to pay as much as 500 % returns within one operational week.
Following SEC's submissions, the Tribunal in December 2007, issued an interim order freezing the accounts of these companies pending the determination of the case.
SEC sought a declaration that the public's deposit of money with these companies for a fixed period and the interest bore is illegal, also seeking an order of the tribunal stopping them from continuing to do business as fund managers.
According to the statement, the Tribunal, delivering final judgment on the matter last week, authorized the SEC to take custody of the investors' funds found in the 30 companies accounts and their banks for the benefit of the investors.
The statement reads: "The tribunal also authorized the Central Bank of Nigeria (CBN), to determine the status of all the investors' funds kept in the custody of the respondent 17 banks namely - Access Bank PLC, Diamond Bank Plc, Equatorial Trust Bank Plc, First Bank Plc, First Inland Bank Plc, Guarantee Trust Bank Plc, IBTC Chartered Bank Plc, Kakawa Discount House Ltd, Oceanic Bank Plc, Skye Bank Plc, Spring Bank Plc, Sterling Bank Plc, Union Bank Plc, United Bank for Africa, Unity Bank Plc, Wema Bank Plc, Zenith Bank Plc and Intercontinental Bank Plc."
SEC will also withdraw and release to all confirmed investors, the said funds found in the possession of the banks.
The affected institutions include All Green Investments Nigeria Limited, Art Masters & Co., Casheed Venture, Cyber International Limited, Fortune Access Interlinks Network Ltd, Goldpower Unique Services Ltd and Gorutrans Nig. Company Ltd.
Others are, Interglobal Investment Ltd, Money Field Ltd, New Freedom Diversified Investment Ltd, Open Gate Multipurpose Investors Ltd, Orion Express Global Services Ltd, Pennywise Investment Ltd, Pennywise Royal Heritage Ltd, Positive Move International Nig. Ltd, Precious Golden Profile Ltd, Real & Cool Wealth International Ltd, Shola Olarewaju Ayinke (doing business in the name and style of Sefteg Nig.Co.), Silvertrust Global Investment Ltd, Successpoint Intercontinental Inv. Ltd, Torid Investment Ltd, Treasured Fund and Assets Ltd, Vikel Petroleum Ltd, Wealth Concept Global Ltd, and Wealthgate Multibiz International Ltd.
Also involved are Wealth Interlink Agency Ltd, Wealth Solution Ltd, Wealth Transfer and Logistics Ltd, Wilson O. Wilson (doing business in the name and style of Wilamas ventures) and Wisdom Investments Nigeria Ltd.
The statement however stated that out of the 37 so called banks dragged to the tribunal, the cases against Multimedia Enhance Lynk Ltd, Proven Insight Consultants Ltd and Kakawa Discount House Ltd were dismissed for want of evidence.
"The earlier interim order freezing their bank accounts was also vacated forthwith," the statement further stated.
Prior to the judgment, the Tribunal had upheld the no case submission made by Megawealth Limited while the SEC had withdrawn its cases against two other companies - Divine Success international Limited and Treasureline Interlink Limited. Their cases were struck out.
The Tribunal could not decide the cases of Wealth Zone limited and Nospetco Oil and Gas Ltd as it stayed proceedings in the cases pending the outcome of appeals they lodged against an interlocutory ruling on its jurisdiction at the Court of Appeal.
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Thank God after a year but this our government na bad people wey no want to eradicate poverty as them they campaign, if not why somebody go they give Okada for poverty eradication schem. Well for this one if fit still take us years as SEC no talk wen they go pay the money. Who knows if all this na set-up sell.Bank they eat fat for the money since as them realise say na their poor man wan take survive from gueniue ones. I beg if u no want naija delt forces for every street make una pay the money before month end. cos una wan come do surmit una forget say AN HUNGRY MAN IS AN HANGRY MAN. so help una God.
God pls save us from the hands of these wonder banks. I invested so much a furtune in Nospetco. My hard earned money just hung like that. I will never try such again. This has taught me a very big lesson.Investing in this country is a very big waste and risk. No wonder the economy is not growing!
Hello, Glory be to God for the giant step taken by The Investment and Securities Tribunal (IST)and I must congratulate all Afican journal.com for their prompt response to the matter concerning the innocent masses. But how long will it take the depositors in those wonder banks to get back their money?. judging from previous cases of failed bank tribunal,stolen of public fund,inflating of contact scam,electroal fraud, injustice which has been synonymous to the judgement in Africa especially in NIgeria.
Thank you okunola,M.A