Lagos — A Federal High Court in Lagos on Tuesday closed the criminal case filed by the Nigeria Deposit Insurance Corporation (NDIC) against the Managing Director of the defunct Integrated Microfinance Bank, Simon Ademola Akinteye.
Trial judge, Justice Okon Abang closed NDIC’s case for lack of diligent prosecution after an application to that effect was argued by the defence team.
Akinteye is facing criminal charge before the court alongside two other directors of the bank over alleged banking malpractices and fraud to the tune of about N604 million.
The directors are Jerry Orimobuohoma and Gabriel Adepoju.
They were specifically accused of granting questionable loans to themselves and other companies without collateral.
When the case came up on Tuesday, lawyer to the second and third accused persons, A.O Sheriff had moved an application to close the case of the prosecution.
The application was predicated on the fact that the prosecution had abandoned the case on three consecutive adjournments after the testimony of the first prosecution witness.
On Tuesday, the prosecution’s counsel, Mrs. Kehinde Bose Ayeni was not in court when the matter was called.
Having listened to the submission of the defence lawyer, Justice Abang closed the prosecution’s case for lack of diligent prosecution.
Sheriff also hinted that he would like to file a no-case submission before the next adjourned date, which was fixed for February 3, 2015.
In the six count charge dated May 22, 2013, the three accused persons were said to have committed several monumental banking fraud by granting questionable and unauthorised loans to companies in which they are directors and other companies.
In count one, Akinteye, Orimobuohoma and Adepoju were said to have conspired among themselves to grant N327.566 million loan to themselves and other related companies without collateral contrary to Section 518 (6) of the Criminal Procedure Act and Section 19 (4) of the Failed Banks Recovery of Debt And Financial Malpractices in Banks Act and punishable under Section 16 (1) (A) of the same Act.
The loan, according to the charge, is yet to be repaid.
In count two, Akinteye, while being the Managing Director of the bank, which is located at 6A, Adeniyi Jones, Ikeja, Lagos, was said to have caused the sum of N131.176million to be withdrawn by Adewale Ayoade, the head of treasury of the bank, which the boss converted to his personal use, contrary to Section 19(1)(d) of the Failed Banks(Recovery of Debts) and Financial Malpractices in Banks Act as amended and punishable under section 20(1)(a) of the same Act.
In count three, Akinteye was said to have caused another N3.2 million to be granted as a loan to Continental Poly Sack Limited, a company which one Bello Oladapo is its director without collateral.
Specifically, he was said not to have taken all reasonable steps to ensure compliance with the rules of the bank, while the said loan is yet to be repaid.
In count four, Akinteye allegedly caused N5.79 million loan to be granted to Deslad Nigeria Limited, a company in which he is a director without declaring his interest in the company during the meeting of board of directors of Integrated Microfinance Bank.
The offence contravened Sections 18 (1) (A) and 18 (3) of Banks and Other Financial Institutions Act (BOFIA).In count five, the second accused (Jerry Orimobuohoma) was said to have caused N29.2 million loan to be granted to Real Steal Company Limited, a company in which he is the Managing Director without declaring his interest in the company during the meeting of board of directors of Integrated Microfinance Bank. The loan was also said to have been granted without collateral.
In count six, the third accused (Gabriel Adepoju) was also said to have caused N108 million loan to be granted without collateral to Gad Press Limited, a company in which he is the chairman.
SOURCE: Daily Independent (Nigeria)
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