Sufuyan Ojeifo
12 July 2009
(Page 2 of 2)
Nwaogu had spent about 30 minutes reeling out the names and the details of the credit and recoveries made by the NDIC. Some of the details indicated that the highest insider credit abuser was a former director of failed Gulf Bank, Adeyeba Adekunle Johns, who got about N7 billion.
Banigo, former Chairman of failed All States Trust Bank, got about N3.2 billion with only N10 million recovered from him so far. The remaining outstanding of about N11.8 billion was got by companies against whom no directors' names were indicated. An individual (Prof. Nta Henshaw) got N17.9 million, bringing the outstanding balance to N15, 170, 852,591.19.
Others are: Eagle Bank former directors - Alhaji Ibrahim Aminu Saleh and Abbati Aminu Saleh (N26.918 million) - who were personally guaranteed by their father and former Secretary to the Government of the Federation, Alhaji Aminu Saleh; and Paul Achimugu (N5.5 million), among others; Trade Bank: Alhaji K.A. Olatunde (N13.3 million); Alhaji S.Y. Abdullahi (N1.25 billion); Lafiagi (N1.156 million) and David Chuka Nwosu (N3.4 million), among others; Gulf Bank: Alhaji Sanusi Ado Bayero (N45.003 million), Babajide Rogers (N11.874 million), and Muyiwa Osho (N242.1 million); City Express Bank: Prince Samuel Adedoyin and Mrs. Sola Adeoti (who both got N5.584 billion for different companies in which they allegedly have interest, out which N453 million has been recovered so far).
But Adedoyin, a day after, denied any indebtedness totalling N5.584 billion to the defunct City Express Bank. Reacting through his solicitors, Sanusi, Akinrimisi & Co, Adedoyin stated that he was not indebted to the defunct City Express Bank in the sum stated. Text of the solicitors' statement reads: "Sequel to the takeover of the defunct City Express Bank by the Central Bank of Nigeria (CBN) in December 2005, an Interim Management Committee appointed by the Central Bank of Nigeria alleged that our client and his companies were indebted to the defunct City Express Bank in contradictory sums ranging from N585,000,000 (Five Hundred and Eighty-Five Million Naira) to N1.2 bn (One Billion, Two Hundred Thousand Naira). These contradictory figures our client has vehemently denied owing.
"Nigeria Deposit Insurance Corporation (NDIC) also forwarded a petition to the Economic and Financial Crimes Commission (EFCC) but was unable to substantiate the sum allegedly owed by our client and his companies. Series of suits have been filed and are pending at the Federal High Court, Lagos in relation to the sum allegedly owed by our client and his companies. However, the sum of N5.584bn (Five Billion, Five Hundred and Eighty-Five Million Naira) forwarded to the Senate Committee on Banking, Insurance and Other Financial Institutions by the NDIC as the amount allegedly owed by our client was never at anytime owed by our client and his companies.
"Our client denies owing the defunct City Express Bank the sum of N5.584bn (Five Billion, Five Hundred and Eighty-Four Million Naira) and stated that the figures forwarded to the Senate Committee on Banking, Insurance and Other Financial Institutions by NDIC are fictitious and untrue. Our client shall forward a detailed and comprehensive petition to the Senate Committee on Banking, Insurance and Other Financial Institutions to refute the libellous and mendacious publication as presented to the Senate Committee on Banking, Insurance and Other Financial Institutions by NDIC."
The committee had also read out names against Assurance Bank of Nigeria Plc: Angela Onyeador (N30.7 million), Chuka Nwokoko (N31.9 million), and Moore Onyekaba (N3.6 million), among others; Liberty Bank: Chief Victor Odili (got N41.1 million; N10.6 million and another N2.6 million got in the name of Colodense Nigeria Limited) and Dr. T.C. Osanakpo (N43.6 million got in the name of Rison Palm Limited); Hallmark Bank: Alhaji B.I. Bunu, Chief F.E.C. Adiele, Chief Jude Akpunku, Dr. Sam Eke, Nnamdi Anyaehie, Nze Maduako and others got a total of N9.3 billion; Lead Bank: J.I. Abulime (N5.8 million), Mallam Saleh Jambo (N17.2 million), Captain Onu and Chief Dubem Onyia (both got N26.6 million in the name of Easy Link Aviation).
Metropolitan Bank: Senator Chris Adighije (N1.9 million); Senator Mike Ajaegbo (N210 million), Chief (Mrs) Remi Adiukwu-Bakare (over N1.093 billion); Great Ogboru (N799.7 million); Oladapo Sarumi (N3.8 million); and Chief S. O. Bakare (about N800 million). But Adighije, a member of the Senate (2003 to 2007), who was indicated in the NDIC report to have collected N1.9 million loan from the defunct Metropolitan Bank in insider abuse, a day after the disclosure on the Senate floor, paid up the entire debt vide a Guaranty Trust Bank draft dated July 8, 2009.
In his letter to the Managing Director of the NDIC, entitled, "Indebtedness to Metropolitan Bank (In Liquidation), he said, "It has just come to our notice through newspaper publications that we are indebted to Metropolitan Bank now liquidated to the sum of N1.9 million only. This state of affairs was not known to us. We had no information about this. One Okolonji of NDIC called a month ago and promised to forward the details to us. He did not do that; he said he was ill."
But in an interview after he made the payment to the NDIC, Adighije said that he was not a director of Metropolitan Bank and could therefore not have been involved in insider credit abuse. Adighije, who was defeated by Nwaogu in the Abia Central Senatorial District election, an election outcome which is still in court, said, "This is another bad politics from Senator Nkechi Nwaogu aimed at me. She mentioned my name knowing that I was never a director nor an insider of any banks who are the specific objects of her investigation. I was not aware of the loan which was obtained in the course of business as obtainable by many other Nigerian businesses. If it is not bad politics why did she single me out, her electoral opponent, to be listed among bank directors and bank owners whereas I am not in either category?"
There was a sensational dimension to the declassification of the names: after she rounded off and laid the report on the table of the Senate, Senator Enyinaya Abaribe (PDP, Abia South) raised the alarm that Nwaogu's mobile phone was already being inundated with text messages threatening her life. But Mark, however, assured her that the Senate would request the Inspector General of Police (IGP) to provide her and members of the committee with adequate security to protect them. He said the Senate was proud of them and that the Upper House would not abandon them after having done a great job in the interest of the nation.
Hear him: "You have performed wonderfully. I commend you for the courage to bring this to limelight. You do not need to be afraid for what you have done for your country as those that have sent you the text messages should first think twice about their actions. We stand by you; we are together in this and we take full responsibilities for this report. It is a far-reaching report. We will do what we have to do. We must play by the rules. Those names here should be ashamed of themselves."
The Nwaogu-led committee is still tracking the indebtedness with a view to getting the debtor director and the companies for which they got the loans to pay up so that depositors of the failed banks can get their money back. A series of meetings have been scheduled with the Central Bank of Nigeria (CBN), NDIC and the debtor directors along this line. The Upper House had directed the NDIC and the CBN to immediately convene a meeting of parties to all pending court cases with a view to enabling the Senate Committee facilitate their resolutions. Besides, the NDIC, as resolved by the Senate, is to come up with a plan for immediate payment of all depositors irrespective of the pending court cases and to put a definite deadline for the completion of the process.
Many other salutary benefits and possibilities are derivable from the Senate intervention. Perhaps, the only possibility that the debtor directors would not want is prosecution. It has already caused panic-situation. Will they therefore quickly liquidate their indebtedness and if they do, will it vitiate the fact that their action had already led to the failure of the banks? This is the issue. Perhaps, if they pay up the debt and the Upper House does not press the case further, prosecution may just be out of the picture.
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