By AKEEB ALARAPE
A Lagos High Court, sitting in Ikeja was told yesterday that there was nothing wrong in the shares buying saga of the defunct Afribank Plc (now Mainstreet Bank). Chief Anthony Idigbe (SAN), counsel to the former managing director of the bank, Mr. Sebastine Adigwe made the assertion yesterday at the resumed sitting of the court on the case of fraud leveled against Adigwe and five others.
The Economic and Financial Crimes Commission (EFCC) were prosecuting Adigwe and five former directors of the bank for allegedly stealing N87.5 billion belonging to the bank.
The former directors include: Osa Osunde, Isa Zailani, Chinedu Onyia, Henry Arogunde and Peter Ololo. At the resumed sitting of the court on the matter yesterday, Adigwe also denied engaging in irregular banking transactions when he held sway as the chief executive of the bank.
First prosecution witness, Mr. Ndubuisi Osakwe, a former head of special project of Afribank, had earlier told the court that loans were granted to some companies in September 2008 by the bank. Osakwe said the credit facility, which ranged between N15 billion and N13 billion, were granted to the companies for the purchase of Afribank shares from the Capital Market.
According to the witness, the beneficiaries of the loan facility include Rehoboth Assets Management Ltd, Falcon Securities Ltd, Resolution Trust Investment Ltd and Petosan Oil and Gas Ltd. He said the lucky companies later issued cheques in various sums in favour of one of the bank's subsidiaries, Afribank Securities Ltd, which later transferred the money into the account of Assets Management Nominees (ASEMAN) Ltd, also owned by the bank.
While cross-examining the witness, Idigbe told the court that the transactions followed normal banking procedures. According to him, the transactions were initiated to forestall a hostile takeover of Afribank by two other banks- Bank PHB Plc and Access Bank Plc, who were, as at then, buying large quantities of the bank's shares.
"The funds were placed in ASEMAN's account, which is controlled by the bank, as a form of security to have control over the shares. "The bank gave out its money to these companies. There was no movement of the funds to the personal account of the first defendant (Adigwe)," Idigbe told the court.
Via: Sun News Online