The Federal High Court in Lagos has struck out the 13-count charge filed against Oba Otudeko, a former chairman of First Bank of Nigeria (FBN).
Chukwujekwu Aneke, the judge, struck out the charges on Wednesday after Rotimi Oyedepo, counsel to the Economic and Financial Crimes Commission (EFCC), announced the withdrawal of the suit.
In January, the anti-graft agency filed the charges against Otudeko and three others over an alleged N30 billion loan fraud.
The three other defendants are Stephen Olabisi Onasanya, a former group managing director of FBN; Soji Akintayo, an ex-board member of Honeywell Flour Mills plc; and Anchorage Limited, a company linked to Otudeko.
EFCC accused Otudeko and the other defendants of obtaining tranches of loans — N12.3 billion, N5.2 billion, N6.2 billion, N6.1 billion, and N1.5 billion — from First Bank under the pretence that the funds were obtained by some firms.
The anti-graft agency said the credit facilities were obtained between 2013 and 2014.
The absence of the former FBN chairman stalled the trial.
Subsequently, the defence team of Otudeko and the anti-graft agency explored an out-of-court settlement over the alleged loan fraud trial.
At the court proceedings on Wednesday, Oyedepo said after the charges were filed, Lateef Fagbemi, attorney-general of the federation, received a letter from the defense team seeking “amicable resolution” of the case.
The EFCC counsel said AGF convened a meeting with all parties in the case upon receipt of the letter.
Oyedepo said the nominal complainant — First Bank — wrote a letter to the AGF on July 16 to withdraw the complaint on the grounds that the matter has been settled.
The EFCC counsel added that on the same day, Otudeko’s lawyer wrote a letter to the AGF that the matter has been settled.
Oyedepo said on July 21, EFCC wrote another letter to AGF that the parties have settled and the charge should not be pursued.
Oyedepo added that depositors’ funds, which were the subject of the charge, have been fully recovered and returned to the treasury of the First Bank.
The EFCC counsel said to avoid abuse of court processes, the AGF decided that the charge should be withdrawn.
On his part, Bode Olanipekun, counsel to Otudeko, confirmed that the funds, which is alleged loan, have been fully paid back
Adeyinka Olumide-Fusika, counsel to the second defendant, told the court that they were invited to a meeting and that the issue is strictly between the nominal complainant and the 1st defendant.
Ekehinde Ogunwumiju, counsel to the 3rd defendant, aligned with the submission of Olumide-Fusika
After the submissions, Aneke struck out the charges.
Last Wednesday, Otudeko sold off his shares in First HoldCo — two years after acquiring them.
The deals representing about 25 percent of the company’s total outstanding shares were traded in 17 negotiated deals at a fixed price of N31 per share.
The Cable
