The Federal High Court in Lagos has scheduled January 20, 2025, for the arraignment of Chief Oba Otudeko, the Chairman of Honeywell Group, and Stephen Onasanya, a former Managing Director of First Bank, over allegations of misappropriating a sum of N12.3 billion from First Bank.
In the high-profile case, Otudeko, a former Chairman of First Bank of Nigeria Holdings, will stand trial alongside Onasanya, as well as Soji Akintayo, a former board member of Honeywell, and Anchorage Leisure Limited, a company allegedly linked to Otudeko.
The Economic and Financial Crimes Commission (EFCC) accuses the defendants of orchestrating fraudulent transactions, including a series of financial activities that spanned several years. The charges relate to sums totaling N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million in fraudulent dealings between 2013 and 2014, all reportedly executed in Lagos.
The case, filed on January 16, 2025, by EFCC counsel Mrs. Bilikisu Buhari, involves 13 charges against the accused, alleging that they used falsified documents to deceive First Bank into approving fraudulent credit facilities. The case, designated as FHC/L/20C/2025, has been assigned to Justice Chukwujekwu Aneke for further proceedings.
In one of the charges, the EFCC accuses the defendants of conspiring to fraudulently obtain the massive sum of N12.3 billion by falsely presenting the funds as credit facilities intended for Tech Dynamic Links Limited and Stallion Nigeria Limited, despite the funds allegedly being intended for illicit purposes.
The charges also include fraudulent activities between 2013 and 2014, with the defendants allegedly obtaining N5.2 billion in November 2013 and N6.2 billion in the same period under similar fraudulent pretenses. Furthermore, the accused are said to have conspired to misappropriate N6.15 billion of the said funds for personal gain.
The EFCC also claims that the defendants' actions violated provisions outlined in the Advance Fee Fraud and Other Fraud Related Offences Act, the Money Laundering (Prohibition) Act, and the Miscellaneous Offences Act, all of which have specific penalties for such financial misconduct.
Another key charge against the defendants involves a claim that they procured Honeywell Flour Mills Plc to retain N1.5 billion on December 11, 2013, allegedly derived from unlawful activities. On December 17, 2013, they are also accused of transferring N500 million to Honeywell Flour Mills Plc under similar fraudulent circumstances.
The EFCC further alleges that, in September 2013, the defendants forged a document titled “Letter of Application” with the intention of misleading First Bank into believing it was a legitimate request. In addition, they are accused of transferring N6.2 billion to Stallion Nigeria Limited and N2.09 billion to Emmerado Logistics Limited as part of their fraudulent scheme.
One specific allegation against Otudeko is that, while serving as Chairman of First Bank Plc, he indirectly benefitted from a N6.15 billion loan facility sought by V Tech Dynamic Links Limited. Otudeko is said to have failed to disclose his personal interest in the loan to the bank, thus violating ethical guidelines and banking regulations.
The EFCC asserts that these activities not only contravene the provisions governing financial institutions but also involve serious offenses such as advance fee fraud, money laundering, and forgery. The penalties for these offenses, according to the relevant Acts, carry significant legal consequences.
