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EFCC Re-arraigns Former BankPHB, Spring Bank Bosses Over N125b Fraud

February 14, 2017

The two former bank chiefs were re-arraigned due to the transfer of the former trial judge, Justice Saliu Saidu, from the Lagos division to the Port Harcourt, Rivers State division of the court.

The Economic and Financial Crimes Commission (EFCC) on Tuesday re-arraigned the former managing director of BankPHB Bank Plc, now Keystone Bank Plc, Francis Atuche, and the former managing director of the defunct Spring Bank Plc, Charles Ojo, before a Federal High Court in Lagos on a 45-count charge of alleged N125 billion fraud.

The two former bank chiefs were re-arraigned due to the transfer of the former trial judge, Justice Saliu Saidu, from the Lagos division to the Port Harcourt, Rivers State division of the court.

Consequently, Mr. Atuche and Mr. Ojo were re-arraigned before Judge Ayokunle O. Faji, who is the fifth judge to handle the matter.

After the re-arraignment of the duo, prosecutor Kemi Pinheiro told the court that he had tendered 65 documents as evidence in the case before the former trial judge and still had an additional 110 documents to tender.

He also urged the court for a quick trial of the matter, which he said has been in court since 2007, adding that the prosecution witnesses risk forgetting details that could be crucial in their testimonies.

Mr. Pinheiro also requested that the court give the two defendants new bail conditions, a move that was opposed by their lawyers.

Mr. Atuche's lawyer, Anthony Idigbe, who was represented by Kalu Okorie, and Mr. Ojo’s lawyer, Mr. Osahon Idemudia, passionately pleaded the court to let their clients continue with the bail conditions earlier granted by the first trial judge of the matter, Justice Akinjide Ayakaiye.

Justice Ajakaiye had admitted them to bail in the sum of N20 million with one surety in the same sum, who must be a property owner in Victoria Island, Ikoyi, and GRA Ikeja.

Justice Ayokunle O. Faji, in his ruling, ordered that the two defendants continue with the earlier bail terms granted to them by Justice Ajakaiye, but ordered that the surety must swear to an affidavit confirming that he or she would still be their surety in the next 14 days.

The matter was then adjourned till February 23 and March 16 and 17.

The two former managing directors were initially arraigned by the EFCC, on an amended 45-count charge bordering on alleged N125 billion fraud, conspiracy, reckless granting and approval of loans, and money laundering between September 1, 2006 and 2009. They pleaded not guilty to all 45 counts and were granted bail.

The alleged offences, according to the anti-graft agency, contravened Section 14(1) of the Money Laundering (Prohibition) Act and Section 516 of the Criminal Code Act Cap 38, Laws of the Federation of Nigeria 2004. The offence of reckless granting of loans contravened Section 7(1)(b) of the Advance Fee Fraud and other Fraud Related Offences Act and punishable under section 7(2)(b) of the Advanced Fee Fraud Act, 2004, and Sections 15(1) of the Failed Banks (Recovery of debts) and Financial Malpractices in Banks Act, 2004.

At the last proceeding of the case, Osahon Idemudia, counsel to Mr. Ojo, had asked the court for an adjournment to enable him to have a pre-trial conference with his client.

The anti-graft agency had re-arraigned both Mr. Atuche and Mr. Ojo before the court on charges of acquiring Keystone Bank’s shares using depositors’ funds.

The duo were also alleged to have used N3.5billion, being proceeds of unlawful loans granted to Tradjek Nigeria Limited, a subsidiary of Futureview Financial Services Limited, in payment for the acquisition of shares of BankPHB using various companies as fronts with an intention to conceal the ownership of the loans. They also allegedly collaborated with different companies to conceal the genuine origins of the N3.5 billion used to acquire the bank’s shares.

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