N15billion Fraud: Nigerian Government Arraigns British National, Former Gulf Bank MD, Others In Lagos

The Nigerian government has re-arraigned Johnson Adeyeba, a former Director of the defunct Gulf Bank Plc, along with British national Gareth Wilcox and four others at the Federal High Court in Lagos, in connection with an alleged N15.7 billion fraud.

The accused include Babajide Rogers, the former Managing Director of Gulf Bank, and Uche Uwechia, the bank’s former Legal Advisor and Secretary.

Also facing charges are the Managing Director of Ibom Power Company and Lyk Engineering Company. The group is charged with a 28-count amended indictment, including fraud and theft.

The prosecution alleges that the defendants illegally appropriated funds from Gulf Bank, using Ibom Power Company and Lyk Engineering to siphon money through bridging loans and overdraft facilities without following due process.

Among the allegations is a N450 million loan granted to Ibom Power Company without proper collateral.

During the hearing, the prosecutor, Rotimi Jacobs (SAN), noted that the case, originally filed in 2013, had been delayed by numerous legal challenges.

The court proceedings continue under Justice Daniel Osiagor.

Jacobs informed the court that the alleged offenses occurred on April 1, 2001, in Lagos.

He claimed that the third defendant, while owing Gulf Bank, falsely denied the liability of the fourth and fifth defendants regarding the dollar and Naira loans granted to them by the defunct Gulf Bank PLC, knowing the statement was false to evade repayment.

It was also alleged that the first, second, and sixth defendants recklessly approved a $20 million bridging loan facility to Ibom Power Company Limited on December 24, 2002, without proper security, in violation of standard banking practices.

Meanwhile, on the same day, the first to third defendants reportedly granted loans of $9.2million, N150 million, and N10 million to Ibom Power Company Limited.

Adeyeba, Rogers, and Uwechia allegedly approved a loan of N1.454 billion to Lyk Engineering Company Limited on April 25, 2001.

Wilcox, serving as Managing Director of Ibom Power and Lyk Engineering, is accused of issuing a false statement on the company's debenture, knowing it was only stamped for N10 million, to avoid repaying the loan.

In January 2001, the defendants allegedly granted Lyk Engineering a $17 million loan to fund its equity contribution in Ibom Power, without the required security per banking regulations.

Between 2001 and 2004, Adeyeba, Rogers, and Uwechia were accused of negligently granting Lyk Engineering a $1.8 million loan for operational and administrative expenses.

The six defendants were also alleged to have, between 2003 and 2004, illegally converted N1.8 billion from Gulf Bank of Nigeria Plc and transferred it to Lyk Engineering for operational expenses, knowing it was criminal proceeds.

However, Adeyeba, Rogers, and Uwechia were accused of recklessly approving a $9.1 million loan for consultancy, design, and soil investigations for a non-existent refinery project involving Lyk Engineering, Lyk Corporation, and Centum Overseas Limited.

They allegedly misused their positions between April 1, 2001, December 24, 2002, August 8, 2003, and other dates to fraudulently convert N15.76 million to fund personal businesses.

The defendants were further accused of using these funds to support Briton’s companies, purchase a vessel, and finance a non-existent refinery.

Adeyeba was specifically accused of fraudulently converting two plots of land—Plots 22 and 23, Zone K, Federal Government Layout, Banana Island, Lagos State—worth N600 million, using fraudulent Certificates of Occupancy dated June 20, 2003.

Uwechia, a lawyer, allegedly assisted the former bank chairman in converting the land for personal use.

The charges were brought under sections 15(1)(c), (2), and (3) of the Failed Banks (Recovery of Debt) and Financial Malpractices in Banks Act, Cap F2, 2010, with penalties under sections 16(1), (2), 18(1), (2), and 19(4).

The defendants pleaded not guilty, and Justice Osiagor adjourned the case to December 13 for trial.