The Economic and Financial Crimes Commission, EFCC, on Wednesday informed Justice Mojisola Olatoregun of a Federal High Court sitting in Lagos that the former Managing Director, MD, of the defunct Intercontinental Bank Plc, Dr Erastus Akingbola, allegedly used N179,385,000,000 belonging to the bank for “fictitious transactions.
Akingbola was re-arraigned over an allegation of fraud to the tune of N179bn by the anti-graft agency.
It would be recalled that Justice Charles Archibong of the same court, who had first presided over the matter had thrown out the charges on the grounds of lack of diligent prosecution.
However, not satisfied, the Commission approached the Lagos division of the Court of Appeal which upturned the decision of Justice Abang and subsequently directed Akingbola to return to the high court to face his trial.
Instead, Akingbola approached the Supreme Court of Nigeria which specifically in May 2018 confirmed the decision of the Appeal Court.
At Wednesday’s proceedings on the criminal charge, counsel to the EFCC, Rotimi Jacobs (SAN), brought before Justice Olatoregun, a further amended charge and urged the court to allow Akingbola to be re-arraigned.
The presiding Justice Olatoregun allowed the request and Akingbola was re-arraigned.
In the 22 counts amended charge, the Commission alleged that Akingbola used the N179bn, “to buy Intercontinental Bank Plc’s shares, thereby inflating the market price of Intercontinental Bank Plc’s shares on the Nigerian Stock Exchange.”
According to the EFCC, this particular offence remains a contravention of Section 105(2)(a) of the Investment and Securities Act 2007, and that same is punishable under Section 115(a) of the same Act.
Akingbola was further accused by the anti-graft agency of reckless granting of credit facilities to five firms, which did not furnish the bank with adequate security for the loans.
The Commission listed the firms, which were each granted a loan of N8bn without adequate security under Akingbola’s watch to include: Soo-Kok Holding Limited; Tofa General Enterprises; Cinca Nigeria Limited; Harmony Trust and Investment Limited; and Stanzus Investment Limited.
In submitting before Justice Olatoregun, the EFCC insisted 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 the Federal Republic of Nigeria, 2004, and was liable to be punished under Section 16(1)(a) of the same Act.
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According to the EFCC, Akingbola took £1.3m from Intercontinental Bank Plc’s GBP NOSTRO account at Deutsche Bank, London, and remitted same into the bank account of Fuglers Solicitors with the Royal Bank of Scotland Plc, London.
The anti-graft agency, that the £1.3m was paid to Fuglers Solicitors for the purpose of buying a property in the name of Life Boat Settlement Trust, which Akingbola set up.
The Commission argued that Akingbola knew the £1.3m to be proceeds of crime, stealing and thereby committed an offence contrary to section 14(1) of the Money Laundering (Prohibition) Act, 2004.”
But Akingbola pleaded not guilty to the 22 counts charge as made against him by the EFCC. Justice Olatoregun adjourned until Thursday for trial to continue
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