Ex- Gulf Bank MD, others re-arraigned over N15.7bn fraud  

The former director and shareholder of the defunct Gulf Bank Plc, Mr. Johnson Adeyeba, the Managing Director and Executive Officer, Mr. Babajide Rogers, and others have been re-arraigned over an alleged N15,761,176.24 billion fraud.

They were re-arraigned on Tuesday before Justice Daniel Osiagor of a Federal High Court sitting in Lagos on 28 counts of the fifth amended charge which borders on stealing and fraud.

Adeyeba was re-arraigned along with a Briton, Gareth Wilcox, the Managing Director of Ibom Power Company; Lyk Engineering Company; and a lawyer, Mr. Uche Uwechia, who was the former Legal Advisor and Secretary to the defunct Gulf Bank Plc.

When the case was called, the prosecution counsel, Mr. Rotimi Jacobs (SAN), told the court that it’s a case that has been ongoing since 2013 and had suffered several setbacks.

The counsel to the first and second defendants, Mr. Okaja Okaja, Johnson Samuel, counsel to the third and fourth defendants (Briton) and Ibom Power Company, Mr. Bababode Adesoji, announced his appearance, while Miss O. G. Bassey appeared for the sixth defendant.

The anti-graft agency alleged that Adeyeba, Rogers, and Uwechia, alongside others who are at large, were alleged to have recklessly granted a loan facility of N450m to Ibom Power Company Limited, without adequate security and contrary to the accepted practice on April 1, 2001, in Lagos.

The prosecutor told the court that Wilcox, while being the Managing Director of Ibom Power Company, Lyk Engineering Company Limited, along with others who are at large, conspired with Adeyeba, Rogers, and Uwechia to recklessly grant a loan of N450m to Ibom Power Company Limited, without adequate security and contrary to the accepted practice.

The anti-graft commission alleged that the third defendant, while being indebted to Gulf Bank, willfully made a statement denying the liability of the fourth and fifth defendants in respect of the dollars and naira loans granted to them by the defunct Gulf Bank Plc, knowing the 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 $20m to Ibom Power Company Limited without adequate security, contrary to the accepted practice.

The first to third defendants were also said to have, on the same day, granted a loan of $9.2m, N150m, and N10m to Ibom Power Company Limited.

Adeyeba, Rogers, and Uwechia were said 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 Companies Limited, while being indebted to the bank, willfully made a statement in asset’s debenture stamped only for the said N10 million, knowing the 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 $17m 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 regulations.

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Between January 2001 and 2004, Adeyeba, Rogers, and Uwechia were alleged to have negligently granted a loan facility of $1.8m to Lyk for the operational and administrative 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 N1.8bn, which was illegally taken from the then Gulf Bank of Nigeria Plc, to pay Lyk Engineering Company for its operational and administrative expenses, the sum which they knew represented the proceeds of crime.

Adeyeba, Rogers, and Uwechia were further accused of recklessly granting a loan facility of $9.1m for the payment of consultancies, conceptual design, rail designs, and soil investigation for a non-existing refinery project for Lyk Engineering Nigeria Company Limited, Lyk Corporation, and Centum Overseas Limited.

They 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 alleged to have also 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 non-existing refinery.

Adeyeba was specifically alleged to have also 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 N600m.

According to the Attorney General of the Federation, their 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 section 16(1), (2), 18(1)(2), and 19(4) of the Failed Banks (Recovery of Debt and Financial Malpractices).

The defendants, however, pleaded not guilty to the charges against them.

They continued with the bail conditions earlier granted to them when they were first arraigned in 2013.

Justice Osiagor subsequently adjourned the case to December 13, 2024, for trial.