Ex-FBN Manager Claims Billions in Loans Misappropriated to Oba Otudeko’s Companies; Files Unfair Dismissal Suit
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A former relationship manager at First Bank of Nigeria (FBN), Adesuwa Ezenwa, has alleged that billions of naira in loans were misappropriated and transferred to companies linked to Oba Otudeko, the then chairman of the bank, despite the loans being recorded under different company names.
Ezenwa is currently pursuing a case at the National Industrial Court (NIC) in Lagos, alleging unfair dismissal by FBN, which is the sole defendant in the matter. According to her statement of facts obtained by TheCable, Ezenwa was terminated on October 5, 2016, for allegedly being involved in fraudulent loan disbursements, though she claims she was never given a clear explanation for her dismissal.
Post-dismissal, Ezenwa was summoned to appear before a credit disciplinary committee investigating loan facilities granted to Supply and Services Ltd, a subsidiary of Royal Ceramics Group, a significant client of the bank. Despite being exonerated of direct involvement in the loans, Ezenwa was criticized during the proceedings for not whistleblowing on transactions approved by her superior, Mr. Olatunji, and Executive Vice President, Mrs. Cecilia Majekodunmi. Ezenwa contends that this rebuke was unjust as the whistleblowing would have been directed at those implicated in the alleged misconduct.
Ezenwa’s statement details that substantial unsecured loan facilities were granted under false pretenses. Specifically, she highlights a N12 billion unsecured facility camouflaged as loans to the Stallion Group of Companies, which was later discovered and contested by the group. Additionally, she cites a N2 billion unsecured loan issued in 2012 to Broadwaters Resources Company Nigeria Ltd, which was allegedly used by Majekodunmi and Onasanya to siphon funds from the bank. This loan remains unpaid.
Further, Ezenwa claims that of the N12 billion disguised as loans to the Stallion Group, N8.21 billion was transferred to V TECH LTD, a company owned by Oba Otudeko, and N4.45 billion was transferred to Ontario Oil and Gas. These funds have not been repaid.
Ezenwa also alleges that similar fraudulent transactions were carried out over the years involving other bank executives and customers, including Supplies and Services Ltd, which subsequently on-lent the funds to various other entities at profitable terms for the bank officials.
Some of these transactions are reportedly under investigation by the Economic and Financial Crimes Commission (EFCC), and their findings are expected to be used in the trial.
Given the scale of the alleged loans, Ezenwa asserts that the bank’s board of directors must be complicit, as the loan amounts exceeded the approval limits of the executive directors, vice presidents, and managing director.
Efforts to contact Oba Otudeko for comment on these allegations have not yet yielded a response.
OTUDEKO AND HIS BANK DEALINGS
Oba Otudeko has faced scrutiny before over bank transactions. Recent controversies include his acquisition of 4,770,269,843 shares in FBN Holdings through his Honeywell Group, increasing his stake in the bank to 13.3 percent. This move sparked protests among FBN Holdings shareholders and prompted Ecobank to request FBN Holdings to reject Otudeko’s bid to become the bank’s largest shareholder. The Securities and Exchange Commission (SEC) is investigating this acquisition, though the results have not yet been made public.
