Nigerian Bank Nigeria Bank PHB Plc – Ex- Bank PHB Spring Bank Chiefs Get Bails

Director Of Bank PHB

Source: Daily Trust, Adelanwa Bamgboye, 9 November 2009

Lagos — Two former bank managing directors, Francis Atuche of Bank PHB and Charles Ojo of Spring Bank, were yesterday granted bail in the sum of N50 million by Justice Akinjide Ajakaiye of the Federal High Court, Lagos. Atuche and Ojo were arraigned by the Economic and Financial Crimes Commission (EFCC) before the court on a 26-count charge of granting reckless credit facilities and mismanagement of depositors’ funds. Justice Ajakaiye held that the two accused persons must also produce two sureties who are to tender titled documents of landed property in Ikoyi or Victoria Island in Lagos.

The bail conditions are to be verified by the judge. Ruling on their bail applications, Justice Ajakaiye identified a single issue for determination which according to him was whether or not enough materials had been placed before the court in determining the applications. He said a pre-trial bail application was usually granted except where there were compelling reasons or circumstances for the court to do otherwise unlike in post-trial bail applications.

On the argument by the EFCC that the applicants would influence the witnesses, the judge said this may not be possible because the accused persons had been removed from office, saying the loyalty of an employee ought to be to the company and not an individual.

The judge added that there was nothing in the prosecution’s counter affidavit to suggest that the applicants would jump bail if granted same as they voluntary handed themselves over to the EFCC and that their passports were still with the State Security Service (SSS). He then adjourned the case to 14, 15 and 16 of December for commencement of trial.

Atuche and Ojo were alleged by the EFCC to have granted a credit facility in the sum of N12 billion to PHB Asset Management Limited and Platinum Capital Limited in which they are directors with no security contrary to acceptable practice. Atuche was also accused of recklessly granting credit facilities worth N21. 39 billion to six companies, Petosan Oil and Gas Limited, Futureview Financial Services Limited, Extra Oil Limited, Tradjek Nigeria Limited, Springboard Trust and Investment Nigeria Limited and Sonadec Securities Limited without adequate security contrary to acceptable practices.

Nigerian Bank Nigeria Bank PHB Plc, Spring Bank Plc