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CBN Boss, Oteh Accused of Lying to House Committee by Former Afribank MD

By on May 9, 2012

The former Group Managing Director of the defunct Afribank, Sebastian Adigwe has accused the Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu and Ms. Arunma Oteh of spreading falsehood concerning the activities of Afribank during it capital raising exercise in 2007.

Mr. Aigwe, testifying before the House Committee on the Near Collapse of the Capital Market on Tuesday faulted the earlier testimony provided by the CBN official and the DG of the Securities and Exchange Commission.

Oteh and Moghalu had stated that Afribank had provided substantial sums of money running into billions of Naira, in the forms of loans to several companies including Falcon Securities Ltd, Fidelity Finance Company Limited and Spring Capital Markets Ltd. The purpose of the money according was to finance the buying of Afribank shares in the IPO according to the allegations by the regulators.

Adigwe said this was a blatant lie as the monies the companies used were received from Union Bank and not Afribank. He provided documentation to prove his assertions and cast doubt on the earlier testimony of Oteh and Moghalu.