A High Court in London, yesterday, ordered the former managing director of Intercontinental Bank Plc., Mr. Erastus Akingbola, to refund the sum of N164 billion to Access Bank Plc. Mr. Justice Burton sitting at Justice Queens Bench Division in London ordered Akingbola to refund the sum of N164 billion being proceeds o
f unlawful share purchase scheme and fund misappropriation and converted into personal use while he was presiding as managing director of the defunct Intercontinental Bank Plc.
Akingbola was removed by the Central Bank of Nigeria (CBN) alongside eight other banks’ CEOs in 2008 for running their institutions aground. Access Bank acquired Intercontinental Bank last year to move into the league of first tier banks. The court ruled that Akingbola devised and oversaw the implementation of the strategy to buy the bank’s shares. Besides, the court found, under cross-examination, that Akingbola told obvious lies that he did not know that the bank was buying its own shares.
It was discovered that shortly before the implementation of the strategy to increase the bank’s share price with the intent of benefiting from the unethical and illegal scheme, Akingbola had borrowed N9.3 billion to purchase a large quantity of the bank’s shares for himself. The court held that the illegal share purchase scheme substantially contributed to the collapse of the erstwhile Intercontinental Bank Plc.
Further investigation by the court also revealed that at a time Intercontinental Bank was undergoing significant liquidity strain, Akingbola misappropriated the sum of N16 billion which was paid to Tropics Companies, a business owned by his family, to repay debts owed by the companies personally guaranteed by Akingbola.
He was also found to have misappropriated another £8.5 million, which was paid to his English solicitors to complete the purchase of luxury properties in London in his name. This judgment may have justified the intervention of the CBN after its findings on some of the illegalities unravelled following its special audit, which led to the removal of CEOs. The trial of Mr. Akingbola, was early last month stalled as the lead defence counsel, Chief Felix Fagboungbe (SAN) and Mr. Deji Sasegbon (SAN), were absent.
Coincidentally, Akingbola, is currently standing trial for alleged N47.1 billion theft before Justice Habeeb Abiru of the Lagos High Court, Ikeja in a suit filed by the Economic and Financial Crimes Commission (EFCC).
Akingbola was removed by the Central Bank of Nigeria (CBN) alongside eight other banks’ CEOs in 2008 for running their institutions aground. Access Bank acquired Intercontinental Bank last year to move into the league of first tier banks. The court ruled that Akingbola devised and oversaw the implementation of the strategy to buy the bank’s shares. Besides, the court found, under cross-examination, that Akingbola told obvious lies that he did not know that the bank was buying its own shares.
It was discovered that shortly before the implementation of the strategy to increase the bank’s share price with the intent of benefiting from the unethical and illegal scheme, Akingbola had borrowed N9.3 billion to purchase a large quantity of the bank’s shares for himself. The court held that the illegal share purchase scheme substantially contributed to the collapse of the erstwhile Intercontinental Bank Plc.
Further investigation by the court also revealed that at a time Intercontinental Bank was undergoing significant liquidity strain, Akingbola misappropriated the sum of N16 billion which was paid to Tropics Companies, a business owned by his family, to repay debts owed by the companies personally guaranteed by Akingbola.
He was also found to have misappropriated another £8.5 million, which was paid to his English solicitors to complete the purchase of luxury properties in London in his name. This judgment may have justified the intervention of the CBN after its findings on some of the illegalities unravelled following its special audit, which led to the removal of CEOs. The trial of Mr. Akingbola, was early last month stalled as the lead defence counsel, Chief Felix Fagboungbe (SAN) and Mr. Deji Sasegbon (SAN), were absent.
Coincidentally, Akingbola, is currently standing trial for alleged N47.1 billion theft before Justice Habeeb Abiru of the Lagos High Court, Ikeja in a suit filed by the Economic and Financial Crimes Commission (EFCC).
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