28 August 2009

Lagos — The Economic and Financial Crimes Commission (EFCC)'s onslaught against troubled bank chiefs and debtors may have yielded bountifully.

Yesterday, the commission announced that it had recovered N25.5 billion from loan defaulters.

EFCC Chairman Farida Waziri told journalists in Lagos that the recovered sums were in fulfilment of her promise to go after debtors who had failed to take advantage of the seven-day ultimatum given them to pay their debts.

She said the anti-graft body had continued with the arrest of loan defaulters and that by last night, 16 bank chiefs and 68 debtors were in EFCC's custody, though she did not reveal their identities.

The commission also announced that it had acceded to the order of a Lagos High Court that the two former Managing Directors of Afribank Nigeria Plc and Finbank Plc, Sabastine Adigwe and Okey Nwosu, who have been in the commission's custody for over a week now, be released on bail.

A Lagos High Court had on Tuesday granted an order that Nwosu and Adigwe, be released from detention on bail on reasonable terms.

EFCC, however, set stringent bail conditions that have to be fulfilled before they can regain freedom.

The conditions are that they-"deposit bank guarantee in the sum of N1 billion in favour of the commission and such bank guarantee should be procured from banks not involved in the current CBN/NDIC/EFCC investigations; the procurer of the said bank guarantee must provide tax clearance certificate of the preceding three years payable as at when due and in tandem with the amount of the guarantee; a surety in respect of each suspect/accused person; such surety must be a serving/current minister of the Federal Republic of Nigerian who will provide a landed property in Victoria Island or Ikoyi in Lagos or Maitama or Asokoro in Abuja whose title and value will be verified and found acceptable to the commission".

The EFCC boss said the two former bank MDs allegedly defaulted their banks through non-performing credits to the sum of N30 billion respectively.

Three of the five bank chiefs sacked by the Central Bank of Nigeria (CBN) in the wake of the post consolidation banking reforms namely Union Bank's Bartholomew Ebong, FinBank's Nwosu and Afribank's Adigwe have been in EFCC custody for more than one week now.

Their two other former colleagues, the Chief Executive Officer of Oceanic, Cecilia Ibru, and Intercontinental Bank Erastus Akingbola were declared wanted by EFCC for failing to honour the commission's invitation.

Ibru, however, surrendered herself to the commission on Wednesday and was interrogated and detained, though she had also secured a court order that her fundamental human rights should not be infringed upon.

Akingbola, on the other hand, is yet to show up.

EFCC, has, however, decided that notwithstanding that the order related to only two persons who had approached the courts, it shall extend same discretion of bail to all other suspects in custody in line with appropriate constitutional provisions.

Waziri, however, stated that EFCC's efforts were not targeted at genuine business people who had existing credit obligations to the affected banks and had dutifully complied with the terms of the facility.

The EFCC boss stated further that the agency was not out to criminalize legitimate borrowing from banks and was mindful of the fact that banking thrives on robust credit administration system.

"For the borrowers, we have been able to group them into two categories, namely, those who have legitimate business intentions and have continued to service their loans; and those whose loans did not follow due process and non-performing," she said.

Waziri declared that it was unfortunate that some of the bank chiefs in trouble at present abused their offices by granting unsecured loans in total disregard of banking rules and regulations to the second category of people.

She explained that the huge amounts owed by the latter category had enormous effect on the national economy, adding that every nation must guard that very seriously.

Waziri gave an example of an undisclosed businessman who secured a loan of N14billion from one of the banks to export crude and as soon as the crude was sold, instead of paying back the loan went to Dubai to buy choice properties.

She said the commission was committed to the rule of law and would not do anything to the contrary.

The total non-performing debt of the five troubled banks is put at N747 billion.

A breakdown of the loan indicated that Oceanic had N278 billion, Intercontinental N210 billion, Afribank N141.8 billion, Union Bank N73.6 billion and Finbank N42.445 billion.

Meanwhile, the atmosphere at the EFCC office was charged when the Group Managing Director of Global Fleet, Mr. Jimoh Ibrahim visited.

The Global Fleet boss arrived EFCC premises at about 12:39 pm in a black Toyota Avalon Car with registration No. FG 274 C43, accompanied by Lagos lawyer, Mr. Femi Falana, carrying cartons of documents, which he claimed were payment of his supposed debt.

He said: "We have paid Oceanic Bank International Plc the sum of N3.1bn and the rest M4.8 Billion will be paid later. We have to go through auditing as the bank has undertaken to reconcile their account and as soon as that is done, if there is any figure against us, it will be paid within 24 hours.

"Oceanic alleged that we owed them N8bn; we have paid N3.1bn, remaining N4.8bn. We will reconcile the account and once that is done, they will get the cheque within 24 hours".

He distributed a letter by the management of the bank dated May 27, 2007 and jointly signed by the General Manager (Corporate Banking Group), Mrs. Abisola Okoakin and Mr. Robinson Ofomata, to show that the bank billed excesses charges to Global Fleet Group account totaling N1.9bn.

The Managing Director of Dansa Group, Ahaji Sani Dangote, had earlier visited the office.

EFCC Spokesman Femi Babafemi told THISDAY that Ibrahim and Dangote were part of the group of debtors that are servicing their debts and that they only came, were interrogated and allowed to go.

Counsel to Nwosu and Adigwe, Mr. Wole Olanipekun (SAN), was also at the EFCC office.

He told journalists that Waziri had promised to release his clients yesterday in line with the Lagos High Court's order.

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