How Debts Owed By Senate President, Imoukhuede, Wigwe’s Companies’ At Intercontinental Bank Were Written Off- Witness
Justice Mojisola Olatoregun of the Federal High Court in Lagos on Thursday heard how loans running into billions of Naira owed to defunct intercontinental Bank Plc by companies belonging to former Managing Director, Access Bank Plc, Aig Imoukhuede, his successor, Herbert Wigwe and the Senate President, Dr Bukola Saraki were written off.
This was revealed when an Economic and Financial Crimes Commission (EFCC) witness, Jimoh Abdurahim was being cross-examined by Chief Wole Olanipekun, counsel to the former Managing Director of the intercontinental Bank Plc, Dr. Erastus Akingbola.
Abdurahim, a former Chief Investigator of the defunct bank, told the court in his testimony that Saraki, Imoukhuede and Wigwe are directors of some of the companies the then Central Bank of Nigeria appointed Managing Director of Intercontinental Bank, Lai Alabi gave approval for their loans to be written off.
Akingbola is facing a 22-count amended charge of fraud, granting reckless credit facility, abuse of office and mismanagement of depositor’s funds.
He, however, pleaded not guilty to the charge
During Thursday’s proceedings, Abdurahim, who now works for Access Bank Plc, gave the names of one of the companies as United Alliance Company Limited with non-performing loans of N4.5 billion, N4.27 billion, and N10.97 billion
The witness further testified that he was aware of some other companies owned by Senator Saraki and his late father, which were also indebted to Intercontinental Bank but whose loans were written off, such as: Dice trade Nigeria Limited, which was indebted to the defunct bank, in the sum of N1, 892, 313, 792. 14 billion.
He also named: Joy Petroleum Limited, with loan of N3.932 billion, Linkers Limited, N3,617,694,988. 99k and Skye View Property which loan of N200.8 billion was written off by Alabi.
The court also heard that the CBN appointed Managing Director of the defunct bank, Alabi, was also a former Managing Director of Songai Farm Limited, a company established by the Senate President.
He also claimed that he was aware that Intercontinental Bank was merged with Access Bank, adding that before Access Bank took over Intercontinental Bank, Intercontinental Bank was larger and bigger than Access Bank in asset and capital base.
Abdurahim also told the court that as at the time Access Bank took over Intercontinental bank he was aware it had branches and subsidiaries internationally, including Ghana and United Kingdom.
The witness further claimed that at the material time, Imokhude and Wigwe were MD and Deputy MD respectively at the Access Bank.
The witness however said he would not confirm the suggestion put to him by Chief Olanipekun that some people at the top made Lai Alabi MD of Intercontinental Bank for the purpose of writing off their loans in the bank.
He also said he was not aware the CBN queried Alabi for writing off the loans.
Justice Olatoregun has fixed Friday (today) for continuation of trial.
In the 26 counts filed before the court, the prosecution alleged that while he was MD and Chief Executive Officer of Intercontinental Bank, Akingbola, between November 2007 and July 2008, was involved in reckless approval of credit facilities without adequate security for a number of firms.
The prosecution alleged that for instance, Akingbola recklessly approved a credit facility of N8 billion each to Soo-Kok Holding Limited, Tofa General Enterprises, Cinca Nigeria Limited, Harmony Trust and Investment Limited, Stanzus Investment Limited.
The EFCC said the illegal transactions were carried out between May 2008 and May 2009 in contravention of “accepted practice or Intercontinental Bank Plc’s regulations.”
The Commission maintained that Akingbola violated Section 15(1)(a)(i) of the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, Cap F2, Laws of the Federation of Nigeria, 2004 and was liable to be punished under Section 16(1)(a) of the same Act.