A former Managing Director of the defunct Intercontinental Bank Plc, Dr Erastus Akingbola, was on Wednesday re-arraigned before a Lagos High Court by the Economic and Financial Crimes Commission, EFCC, on N179bn fraud charges.
He was re-arraigned following a further amendment to the charges which the EFCC had preferred against him in 2009.
At the initial hearing, Justice Charles Archibong, who first handled the case, had struck out the charges on the basis of lack of diligent prosecution.
The EFCC, however appealed against the judgment and had it overturned by the appellate court which ordered Akingbola back to the high court to face trial.
Not satisfied with the Appeal Court’s decision, Akingbola headed to the Supreme Court, which affirmed the decision of the appellate Court.
The case was therefore reopened before Justice Mojisola Olatoregun.
At Wednesday’s proceedings, the prosecuting counsel, Mr. Rotimi Jacobs, SAN, brought a further amended charge sheet and urged the court to allow Akingbola to be re-arraigned.
The judge granted the prayer and Akingbola was re-arraigned.
In the amended charges, the EFCC alleged that while he was the MD and Chief Executive Officer of Intercontinental Bank Plc, Akingbola used N179, 385,000,000 belonging to the bank for “fictitious transactions.”
It claimed that Akingbola used the N179bn “to buy Intercontinental Bank Plc’s shares, thereby inflating the market price of Intercontinental Bank Plc’s shares on the Nigerian Stock Exchange,” contrary to Section 105(2)(a) of the Investment and Securities Act 2007, adding that the offence is punishable under Section 115(a) of the same Act.
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The anti graft body also accused Akingbola of reckless granting of credit facilities to five firms, which did notpresent the bank with adequate collateral for the loans contrary to Section 15(1)(a)(i) of the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, Cap F2, Laws of the Federation of the Federal Republic of Nigeria, 2004.
The body further alleged that Akingbola took £1.3m from Intercontinental Bank Plc’s GBP NOSTRO account at Deutsche Bank, London, and remitted same into the bank account of Fuglers Solicitors with the Royal Bank of Scotland Plc, London.
According to the EFCC the £1.3m was paid to Fuglers Solicitors for the purpose of buying a property in the name of Life Boat Settlement Trust, which was set up by Akingbola.
The EFCC claimed that Akingbola knew the £1.3m was proceeds of crime, “to wit: stealing and thereby committed an offence contrary to section 14(1) of the Money Laundering (Prohibition) Act, 2004.”
Akingbola, however, pleaded not guilty to the 22 counts.
Hearing continues tomorrow,Thursday, March 14.
