Ex-Gulf bank MD, director, Briton, others, re-arranged by FG over alleged N15.7bn fraud
By Onyewuchi Ojinnaka
Erstwhile Managing Director/ Chief Executive Officer of defunct Gulf Bank, Mr Babajide Rogers and ex-director/shareholder of same defunct bank, Mr Johnson Adeyeba and other defendants, were on Tuesday re-arraigned before a Federal High Court sitting in Lagos by the Attorney General of the Federation on behalf of the Federal Government over alleged N15.7 billion fraud.
Others re-arraigned along with Rogers and Adeyeba before Justice Daniel Osiagor include a Briton Gareth Wilcox who doubled as the managing director of Ibom Power Company and Lyk Engineering Company; a lawyer/ former Legal Advisor and Secretary to the defunct Gulf Bank Plc Mr Uche Uwechia.
The defendants who took their first plea on arraignment in 2023 were re-arraigned for the fifth time on 28 counts amended charge bordering on conspiracy, stealing, and fraud.
At the resumed hearing of the charge on Tuesday (today ), the prosecutor, Rotimi Jacobs (SAN), after announcing his appearance, told the court that the case has been on going since 2013, but had suffered several setbacks.
Mr. Okaja Okaja announced his appearance for the first defendant while Mr Johnson Samuel also appeared for the second defendant.
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The counsel to the third and fourth defendants (Briton) and Ibom power company,
Mr Bababode Adesoji announced appearance for the third and fourth defendants (the Briton and Ibom Power Company Limited) while Miss O. G. Bassey appeared for the sixth defendant.
According to the charge, Rogers, Adeyeba and Uwechia, alongside others who are at large were accused of recklessly granted a loan facility of N450 million, to Ibom Power Company Limited, without adequate security which is contrary to the accepted practice.
The prosecutor told the court that the incident occurred on April 1, 2001, in Lagos.
Jacobs also told the court that Gareth Wilcox, while being the managing director of Ibom Power Company, Lyk Engineering Company Limited alongside others who are at large, conspired with Adeyeba, Rogers, and Uwechia, and recklessly granted a loan of N450 million, to Ibom Power Company Limited, without adequate security and contrary to the accepted practice.
The FG averred that the third defendant while being indepted to Gulf bank, willfully made a statement denying the liability of fourth and fifth defendants in respect of the dollars and Naira loans granted them by the defunct Gulf bank Plc, knowing same to be false, so as to avoid the repayment of the loan granted.
The first, second and sixth defendants were alleged to have on December 24, 2002, recklessly granted a bridging loan facility of $20 million, to Ibom Power Company Limited without adequate security contrary to the accepted practice.
Furthermore, first to third defendants were alleged to have on the same day granted a loan of $9.2 million, N150million, and N10million, to Ibom Power Company Limited.
Adeyeba, Rogers, and Uwechia, were alleged to have on April 25, 2001, granted a loan of N1,454,000,000 to Lyk Engineering Company Limited.
On the same day, Wilcox, while being the managing director of Ibom Power, and Lyk Engineering Company Limited, while being indebted to the bank, willfully made a statement in asset’s debenture stamped only for the said N10million, knowing same to be false so as to avoid the repayment of the loan granted to him.
Sometime in January 2001, they also granted a loan facility of $17million, to Lyk Engineering Company Limited for the payment of equity contribution of Lyk Engineering Company, in Ibom Power Company, with no security as normally required in accordance with the Bank’s regulation.
Adeyeba, Rogers, and Uwechia, were alleged to have between January 2001 and 2004, negligently granted a loan facility of $1.8 million, to Lyk, for the operational and administrative, for the expenses of Lyk Engineering Company Limited, in Ibom Power Company Limited.
The six defendants were alleged to have between 2003 and 2004, converted the aggregate of N1.8billion, which was illegally taken from the then Gulf bank of Nigeria Plc, paid Lyk Engineering Company for its operational and administrative expenses the sum which they knew represented the proceed of crime.
Adeyeba, Rogers, and Uwechia, were further accused of recklessly granting a loan facility of $9.1million, for the payment of consultancies, conceptional design, rail designs and soil investigation for non-existing refinery project for Lyk Engineering Nigeria Company Limited, Lyk Corporation and Centum Overseas Limited.
The defendants were alleged 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 to fund their private businesses.
The defendants were further alleged to have used their positions to defraud the defunct bank of the said amount to fund the Briton’s companies, while the two of them were also alleged to have used the money to purchase a vessel and finance a none existing refinery.
Specifically, Adeyeba was alleged to have fraudulently converted to his personal property, two plots of land, Plot 22 and 23 Zone K, Federal Government Layout, Banana Island, Lagos State, with Certificate of Occupancy numbers: 27/27/96 and 7/7/96 dated 20 June, 2003, belonging to the defunct bank.
The lawyer, Mr. Uche Uwechia, was alleged to have aided the former bank chairman to convert the said lands to his personal properties. The value of the land is estimated to be N600million.
According to the charge filed by the AGF, the offences are contrary to Section 15(1)(c) (2) and (3) of the Failed Banks (Recovery of Debt) and Financial Malpractices in Banks Act Cap F2, 2010 and punishable under Sections 16(1), (2),18(1)(2) and 19(4) of the Failed Banks (Recovery of Debt and Financial Malpractices.
The defendants were first arraigned in 2013, and subsequently, before they were re-arraigned on Tuesday.
After the re-arraignment of the defendants on Tuesday, they however pleaded not guilty to the charges against them and were ordered to continued with the bail conditions earlier granted to them.
Justice Osiagor has adjourned the case until December 13, 2024, for trial.
