N12.3bn Fraud Case: CBN, First Bank Staff to Testify Against Otudeko

Representatives from the Central Bank of Nigeria (CBN) and First Bank of Nigeria (FBN), along with other witnesses, are set to testify against Chief Oba Otudeko, Chairman of Honeywell Group, and Olabisi Onasanya, former Managing Director of First Bank, in a fraud case involving N12.3 billion.

The Economic and Financial Crimes Commission (EFCC) has filed a 13-count charge against them, accusing them of fraudulently obtaining the funds from First Bank between 2013 and 2014.

The EFCC alleges that the defendants secured N6.2 billion in credit facilities from First Bank under false pretenses, claiming the loans were for Stallion Nigeria Limited. These actions are said to violate the Advance Fee Fraud and Other Fraud Related Offences Act 2006.

Related News:

• N12.3bn Fraud Case: CBN, First Bank Staff to Testify Against Otudeko
• FirstBank Press Release on General Hydrocarbons Account Freeze

One charge states: “That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO, AND ANCHORAGE LEISURE LIMITED, on or about the 26th day of November 2013 in Lagos, within the jurisdiction of this Honourable Court, conspired amongst yourselves to use the total sum of N6,150,000,000 (Six Billion, One Hundred and Fifty Million Naira Only), which you reasonably ought to have known forms part of proceeds of your unlawful activities, to wit: Obtaining by False Pretence. You thereby committed an offence contrary to Sections 18(a) and 15(2)(C) of the Money Laundering (Prohibition) Act, 2011 (as amended), punishable under Section 15(3) of the same Act.”

Another charge alleges: “That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO, AND ANCHORAGE LEISURE LIMITED, on or about the 11th day of December 2013 in Lagos, within the jurisdiction of this Honourable Court, procured Honeywell Flour Mills Plc to retain the sum of N1,500,000,000 (One Billion, Five Hundred Million Naira Only), which sum you reasonably ought to have known forms part of proceeds of your unlawful activities, to wit: Obtaining by False Pretense.

You thereby committed an offence contrary to Section 18(c) and 15(2)(d) of the Money Laundering (Prohibition) Act, 2011 (as amended), punishable under Section 15(3) of the same Act.”

Additionally, the EFCC claims that Otudeko had a personal interest in a N6.15 billion loan facility sought by V-Tech Dynamics Links Limited while serving as Chairman of First Bank, which he allegedly did not disclose to the bank, violating the Banks and Other Financial Institutions Act 2004.

The prosecution plans to call witnesses from the EFCC, V-Tech Dynamics Links Limited, Stallion Nigeria Limited, First Bank, and the CBN to provide evidence. The defendants are scheduled to be arraigned on January 20 before Justice Chukwuejekwu Aneke of the Federal High Court in Lagos