Police re-arraigns former Gulf Bank MD, 7 others over N12bn fraud

The police in Lagos on Friday re-arraigned a former Managing Director of the defunct Gulf Bank Plc, Johnson Adeyeba, and seven others over alleged N12 billion fraud.

The accused re-appeared before Justice Mohammed Yunusa of a Federal High Court in Lagos on an amended 21-count charge.

They are being prosecuted by the Special Fraud Unit (SFU) of the Nigeria Police Force.

Adeyeba was charged along with a Briton, Gareth Wilcox, his companies – Ibom Power Company and LYK Engineering Company – and a lawyer, Uche Uwechia.

The other accused are Ignatius Ukpaka and John Ezugwu and their company, Taurus Shelters Ltd.

They, however, pleaded not guilty to the charge.

The News Agency of Nigeria (NAN) reports that the first five accused were on Dec. 23, 2013, arraigned before the same court.

They pleaded not guilty.

Yunusa had granted them bail in the sum of N200 million each with two sureties in like sum.

The police said that the accused converted over N12 billion from the defunct bank in the guise of granting loans and overdrafts to various companies without appropriate accounting records.

The police claimed that the accused used part of the money to finance a non-existing refinery, and converted some for personal use.

They said that the offences contravened the provisions of Section 390 of the Criminal Code, Cap A6, Laws of the Federation, 2006.

The Prosecution Counsel, Mr Dania Abdullahi, had informed the court that the prosecution consolidated the charge and included names of additional accused persons.

Abdullahi prayed the court to allow re-arraignment of the accused.

The court allowed the accused to remain on the bail it earlier granted them.

Counsel to the fifth accused, Mr Revell Ogunde (SAN), informed the court that he filed a motion challenging the jurisdiction of the court to hear the suit.

He argued that the police had no constitutional right to prosecute financial crimes without the authority of the Economic and Financial Crimes Commission (EFCC).

Ogunde added that the alleged offences were embedded on the residual list, and could only be entertained by a state high court.

He urged the court to strike out the charge.

Counsel to the sixth, seventh and eighth accused also made the same submissions.

Yunusa adjourned the case to April 14 for ruling on the preliminary objection. (NAN)