Embargo On Shares: Ex-Intercontinental Bank Chairman Settle Out Of Court ...the EFCC Connection

Information reaching shybellmediaonline.blogspot.com has it that, relief has come the way of the former Chairman of the defunct Intercontinental Bank Plc, Dr. Raymond Obieri and his company, Harmony Trust and Investment Limited as Economic and Financial Crime Commission, EFCC, has lifted the caution placed on their shares with Central Securities Clearing System Plc.

Pursuance to a term of settlement filed before a Federal high court in Lagos, south west Nigeria, Dr. Raymond Obieri and Economic and Financial Crime Commission consequently agreed to explore option of amicable settlement and in pursuance there to have irrevocably agreed to an out of court settlement upon the following terms

An order of the court lifting the coution placed on the plaintiffs shares by the Central Securities Clearing System Plc at the request of EFCC.

An order of the court permitting the plaintiff to enjoy full rights and privileges’ without hindrance with respect to their shares with the Central Securities System Plc.

Pursuant to this terms of settlement, plaintiffs agree to withdraw, and hereby withdraw, all claims against EFCC in respect of the subject matter in this suit and relinquishes all such rights or claim sought to be enforced against the defendants in this suit, subject to this terms of settlement.

Barrister Ade Adedeji signed the terms of settlement on behalf of the plaintiffs while Chief Godwin Obla signed for EFCC.

This terms of settlement was sequel to a suit instituted against EFCC and Central Securities Clearing System Plc by Dr. Raymond Obieri and his company Harmony Trust and Investment Limited urging the court to declare as illegal the placing of caution on their shares by Central Securities Clearing System Plc at the instance of EFCC.

In an affidavit sworn to by Dr. Raymond Obieri and file before a federal high court in Lagos he alleged that himself and his company have their shares account domiciled with Central Securities Clearing System Plc and by its letter dated 4

th day of September, 2009, EFCC directed Central Securities Clearing System to place caution on the shares owned by them, consequently Central Securities Clearing System placed embargo on all their shares.

Dr. Obieri contended that himself and his company have never been charged before any court by EFCC for commission of any crime neither have they been found guilty of any financial/capital market crime by addition no court order was obtained by EFCC before directing that embargo should be placed on their shares.

Dr. Obieri further averred that he wrote a letter of appeal to EFCC to lift the embargo placed on their shares still the embargo was not lifted, therefore persistent refusal of EFCC to lift the embargo has caused them untold hardship and impacted negatively on the smooth operation of the activities of Harmony Trust and Investment Limited, therefore urged the court to declare that the placing of caution on their share is illegal, unlawful null and void, the plaintiffs also prayed the court to order thy defendants to lift the caution placed on their shares.

However, in a counter affidavit sworn to by Alice Bulus Nkwariza, an EFCC operative and filed before the court by Mr. Ali Yusuf a legal officer of EFCC, the deponent averred that EFCC received a written complaint from the Central Bank of Nigeria in a petition dated 18

th August, 2009 against the management of Intercontinental Bank Plc bordering on conspiracy, financial misappropriation false representation of financial records.

The petition was discretely investigated and at the end of the investigation, it was found that about the sum of N10 billion depositors funds with the bank was fraudulently withdraw and the plaintiffs was discovered to have role in the said withdrawal.

Nkwariza alleged further that the said sums were fraudulently withdrawn under the guise that the money was meant for payment for Intercontinental Bank shares under the chairmanship of the plaintiff, claimed was bought for the bank. Further investigation also revealed that Intercontinental bank Plc under the chairmanship of Dr. Raymond Obieri operated an account specially coded as PRPMT 1605000022 which was created and fraudulently debited in the general ledger account to clean up audit trails, while the plaintiff normally debited the time deposit non bank account of the bank to clean up the shares transaction to ensure that it does not reflect in the banks returns to the regulatory authorities.

Alice Nkwariza also alleged that Dr. Obieri admitted in the cause of investigation that these transactions were not reported to the Central Bank of Nigeria and that by 31

st August 2009, the total transaction came to about N180 billion which investigation revealed render the bank distressed in addition the admission that the payment of about N180 billion were for shares and that the bank was involved in buying its own shares but this was an illegality.

It was further alleged in the counter affidavit that Dr. Obieri was involved in the reckless grant of N8 billion facilities to Harmony trust and Investment Limited a company owned by him without collateral security thereby compromising his position as the chairman of the bank. The said N8 billion loan was neither processed nor approved by the credit facility committee, the loan was subsequently converted tos hares with the Central Securities Clearing System Plc, though in the cause of investigation, Dr. Obieri said he requested that the said credit facility should be reversed but he could not substantiate his claim.

Investigation revealed that the shares were not paid for rather it was a mere paper work without cash backing and it was a scheme designed to defraud the bank and other shareholders for absolute contro of the bank fraudulently.

Consequently, EFCC contended that the suit is incompetent as the applicant cannot claim the relief sought as he lack interest in the subject matter of the suit.

The shares which are the subject matter of this suit are properties of the defunct Intercontinental Bank Plc now Access Bank Plc and which was recovered by the EFCC on behalf of the bank, therefore the court should not grant the application of the plaintiff.