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Unpaid N212m debt: Bank sues APC chieftain, firm

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In a bid to recover its debt of N212, 051, 898. 22 million, Diamond Bank Plc., has instituted a suit against a chieftain of All Progressive Congress (APC) Chief Fouad Ade Oki, before a Federal High Court sitting in Lagos.

The bank in its suit delineated FHC/L/CS/134/2016 before Justice Chuka Obiozor alleged that Oki’s firm, Eko Akete Engineering and Construction Company refused and neglected to settle its outstanding debt. When the matter was called yesterday, counsel to Diamond Bank Mrs. Ifeoma told the court that the defendants have been evading service. The court ordered her to move her application and call her witness in the matter.

Following the directive of the presiding judge, the lawyer called her witness, Stella Ekhator, who is the Ajah branch manager of the bank. However, as she wanted to tender documents, the judge adjourned further hearing till June 25.

Diamond Bank stated that its management had on May 1, 2012 approved a request of Oki’s firm for a term loan facility in the sum of N75 million, which the firm used in purchasing heavy duty equipment and to fund some project works for the construction of Suleimon Soderu by-pass in Ikorodu local government area of Lagos state. The bank also stated that Oki’s firm approached it for another loan on February 1, 2013 which were availed to the firm in sum of N36 million and N55, 530 million, as a term loan and lease finance facility, and Oki who is the managing director of the firm and one Bayo Akeju, a director in the firm, signed the acceptance column of the offer letter.

The bank also stated that Oki’s firm utilized and drew down on all the facilities availed to it, and as at November 1, 2014, due to the transactions on the said amount, and the failure of Oki’s firm to fund its account, the firm’s account was in debt to the tune of N151, 028, 057. 04 million.

The bank further stated that as a result of debt balance in the firm’s account, several meeting and discussions were held between it and the firm with the aim of getting the firm to liquidate its indebtedness, the firm again on December 18, 2014, requested for an extension of the loan facilities totaling N96, 124, 118. 90 million, to enable the construction firm meet its already increasing obligations and liquidate its indebtedness to the bank, and the request was granted.

The bank states that despite having granted an extension the firm has failed, refused and neglected to settle its debt.Diamond bank stated that it wrote demand letters through its lawyer on February 27; June 1; October 7; 2015, to both Oki and his firm and demanded repayment of the outstanding debt, and still both defendants failed to liquidate the outstanding debt.

The bank states that as at March 31, 2016, Oki’s firm outstanding debt on the loan facilities plus accrued interest has amounted to N212, 051, 898. 22 million.
Consequently, Diamond Bank Plc. seeks an order of the court compelling the defendants jointly or severally, to pay the sum of N212, 051, 898. 22 million, representing principal and accrued interest as at the date, arising from various loan facilities granted to the company.

The bank also seek an order of the court for payment of compound interest at 22.19 percent per annum on the said N212, 051, 898. 22 million, until judgment, and thereafter at the rate of 15 percent per annum, until final liquidation of the judgment sum. And an order permitting it to continue either by itself or through its solicitors, to retain ownership and control of all the fixed and floating assets of the two defendants, until the final liquidation of this requested sum with interest, or until the charged property and assets are sold.


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Fouad Ade Oki
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