N15 Billion Fraud: FG Re-arraigns Former Gulf Bank MD, Adeyeba, Others

Wale Igbintade

Former Managing Director of the defunct Gulf Bank Plc, Johnson Adekunle Adeyeba, and others were yesterday re-arraigned before a federal high court in Lagos over alleged N15,761 billion fraud.

Adeyeba was re-arraigned alongside 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.

They were re-arraigned before Justice Daniel Osiagor on a 28-count amended charge bordering on stealing, and fraud brought against them by the federal government.

When the case was called, the prosecutor, Rotimi Jacobs, told the court that it was a case that had been going on since 2013 and had suffered several setbacks.

Counsel to the first defendant, Mr. Okaja Okaja, announced his appearance, Johnson Samuel also appeared for the second defendant.

The 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.

Adeyeba, Rogers, and Uwechia, alongside others who are at large, were alleged to have recklessly granted a loan facility of N450 million, to Ibom power company limited, without adequate security and contrary to the accepted practice.

The prosecutor said the incident occurred on April 1, 2001, in Lagos.

According to the prosecutor, Wilcox, while being the Managing Director of Ibom Power Company, Lyk Engineering Company Limited alongside others who are at large, allegedly conspired with Adeyeba, Rogers, and Uwechia, recklessly granted a loan of N450 million, to Ibom Power Company Limited, without adequate security and contrary to the accepted practice.

The federal government said 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 them by the defunct Gulf Bank Plc, knowing 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 $20 million, 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 $9.2 million, N150 million, and N10 million, 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 the asset’s debenture stamped only for the said N10 million, knowing 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 $17 million, 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 regulation.

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, for expenses of Lyk Engineering Company Limited, in Ibom Power Company Limited.

In addition, the six defendants were alleged to have between 2003 and 2004, converted the aggregate of N1.8 billion, which was illegally taken from the then Gulf Bank of Nigeria Plc, paid Lyk Engineering Company for its operational and administrative expenses the sum which they knew represented the proceed of crime.

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

Besides, 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 none 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.