- Otudeko, Onasanya, Others Absence Absence Pauses Court Arraignment
By Abiola Olawale
The arraignment of Chief Oba Otudeko, former Chairman of Honeywell Group and First Bank of Nigeria Holdings(FBN), along with Bisi Onasanya, a former Managing Director of First Bank, and others on charges of an alleged N12.3 billion fraud is being stonewalled, triggering howling anxieties amongst staff, creditors and shareholders of Nigeria’s premier financial institution.
Although the arraignment of Oba Otudeko, Onasanya and others was scheduled for January 20, 2025, at the Federal High Court in Lagos State, however, their absence has led to a pause in the process.
Meanwhile, the legal representatives of the legendary Nigerian investor and boardroom mogul, Otudeko and Onasanya were present in court before the presiding judge, Justice Chukwuejekwu Aneke.
Bode Olanipekun, a Senior Advocate of Nigeria(SAN), said to be acting on behalf of Oba Otudeko, who made an appearance before Justice Aneke, expressed his concerns regarding the proceedings. He underlined that he was in Court in protest, as neither his client nor the other defendants had been formally served with the charges relating to the case.
Olanipekun told the court that despite not being served with the charges, the defendants were shocked to hear of their planned arraignment through the media when the story broke last week Thursday.
Following the development, the court fixed February 13, 2025, for the arraignment of the duo of both Otudeko and Onasanya, and others connected with the matter.
This comes after the Economic and Financial Crimes Commission (EFCC) had accused them of fraudulently obtaining credit facilities from First Bank under pretenses between 2013 and 2014.
These charges include obtaining humongous sums in various tranches totaling N12.3 billion through V-Tech Dynamic Links Limited and Stallion Nigeria Limited, as well as presenting alleged forged documents to misrepresent transactions.
This comes amid endless legal tussle and battle for the soul of FBN Holdings. It would be recalled that internal tension and unease bedeviling Nigeria’s oldest financial institution, the First Bank, have continued to escalate as there has been a reported move among shareholders of First Bank of Nigeria Holdings Plc (FBN Holdings) to trigger a shake-up in the leadership of the company’s Board.
This is as shareholders of First Bank Holdings Plc are said to be currently pushing for an extraordinary general meeting (EGM) to accomplish that goal.
The New Diplomat’s checks reveal that most stakeholders declared that the demand for the EGM is in line with section 2615 (1) of CAMA, in which case they have just days to call the EGM.
It was gathered that the key focus of the upcoming meeting is to discuss and explore likely ways for the potential ousting of Femi Otedola from his position as chairman, along with the removal of one Julius B. Omodayo-Owotuga from his role as a non-executive director.
Recall also that Otudeko had initiated legal action against FBN Holdings, seeking a court order to compel the financial institution to recognize his investment vehicle, Barbican Capital, as the largest shareholder in the bank. If he succeeds, this would effectively checkmate Otedola from gaining recognition as the largest single shareholder in First Bank Holdings.
Otudeko, in the lawsuit (no. FHC/L/CS/1172/24), had claimed Barbican Capital owns a 15.01 percent stake amounting to 5.38 billion units.
However, the bank insists that Otedola, who holds a 9.41 percent share, is the largest shareholder.
First Bank argued that Barbican and Otudeko could not provide evidence of the purchase of some of the shares it claims to own.
According to court papers, First Bank further argued that Barbican is concealing details of an ongoing verification exercise by the Central Bank of Nigeria of its alleged significant shareholdings.
It noted that only 3.11 billion shares (representing 8.67 percent) of Barbican Capital’s total shares could be verified by the CBN, while its alleged 2.34 billion shares (representing 6.52 percent) could not be verified.
FBN Holdings and the CBN, both respondents to the lawsuit, had asked a Federal High Court sitting in Lagos to dismiss the suit filed by Barbican Capital over “the alleged alteration of its alleged 5,386,397,202 units of shares in the bank”.
In the meantime, the battle for the soul of First Bank, Nigeria’s oldest financial institution, rages in and out of the courtrooms, a development that has triggered raging anxieties about the bank.
