Court Fixes Oct 3 for Ruling in Final Forfeiture of Over N6.5bn Cititrust Holdings’ Assets

Wale Igbintade

Justice Friday Ogazi of the Federal High Court in Lagos, has fixed October 3, 2024, to rule on an application by the Economic and Financial Crimes Commission (EFCC) for the final forfeiture of the assets of Cititrust Holdings Plc and its subsidiaries.

The court had on May 15, 2024, in suit number: FHC/L/MISC/185/2024, filed by the EFCC against Cititrust Holdings, Cititrust Financial Service Limited and Cititrust Asset Management Limited, granted an order of interim forfeiture of the assets of the three firms.

The EFCC had through its counsel, G.G. Ejere listed assets of Cititrust Holdings, including its 40 percent shareholding in Livingtrust Mortgage Bank Plc currently valued at N6.5billion.

Other assets owned by the firm’s subsidiaries listed by the EFCC include, N42 million and $26.44 in its Providus Bank and Fidelity Bank accounts respectively.

The judge had also directed that the forfeited assets should be taken over by the EFCC pending the hearing of application for final forfeiture of the assets.

Challenging the application for final forfeiture, Cititrust Holdings Plc, through its lawyer, Adeniji Kazeem, SAN, prayed the court to set aside the interim forfeiture order.

At the resumed sitting on Monday, counsel to Cititrust Holdings vigorously sought the court’s permission to move the motion to set aside the ex parte order secured by the EFCC on May 15.

The prosecution having filed their counter-affidavit, the judge allowed the counsel to Cititrust Holdings to move the motion to discharge the interim order of forfeiture against the firm.

In a 21-paragraph Affidavit in support of the Motion on Notice deposed to by Oladoja Oluwo, a director and shareholder in the 3rd respondent/applicant, he stated that the relationship between the respondents and the numerous complainants who petitioned the Economic and Financial Crimes Commission is purely civil in nature arising from simple contract and investment banking and there is nothing criminal about the entire situation.

According to him, EFCC concealed material fact before the court and painted a picture that portrays the financial assets and tangible (personal and real) assets of the 3rd Respondent/ Applicant as proceeds of crime.

He said the operations of the 3rd respondent/applicant as a Non-Operating Capital Market operator under the Security and Exchange Commission (SEC) is distinct from the operations of Core Capital Limited (Now Grandvest Investment Limited).

He stated that the 3rd respondent/applicant as a Holding Company is separate and distinct from its subsidiary companies as Core Capital Limited (Now Grandvest Investment Limited) and cannot be held liable for the actions of its subsidiary companies.

“Further to (16) above, the applicant/respondent having concealed this material fact before the court has presented distorted facts that the 3rd Respondent’s assets are proceeds of crime and same should be forfeited to the Federal Government of Nigeria.

“The 3rd respondent/applicant does not only have a good defence to this action but is ready, willing and able to pursue the matter to its logical conclusion,” he added.

He urged the court in the interest of justice to grant the application.

Justice Ogazi, subsequently, reserved ruling on the matter till October 3, 2024.