N125b Fraud: Court Adjourns Trial Of Former MDs of Bank PHB, Atuche, Spring Bank, Ojo To January 29, 2015

N125b Fraud: Court Adjourns Trial Of Former MDs of Bank PHB, Atuche, Spring Bank, Ojo To January 29, 2015

A Federal High Court in Lagos yesterday adjourned till January 29, 2015, the ongoing trial of former Managing Director of defunct Bank PHB, Francis Atuche and that of defunct Spring Bank Plc, Charles Ojo, charged with N125 billion fraud.

The two former bank chiefs are arraigned before the court by the Economic and Financial Crimes Commission ( EFCC ) on an amended 45-count charge of granting unsecured credit facilities, manipulating shares and committing general banking fraud to the tune of over N125 billion. 

Justice Saliu Saidu was forced to adjourned the case, following an application for adjournment by the EFCC.

When the case came up for hearing on Tuesday, a counsel that represented the anti-graft agency, Mrs Damilola Agboola, informed the court of a letter from the prosecution dated November 17, seeking for an adjournment of the suit.

She also told the court that she received a similar letter from defence counsel, also seeking an adjournment, and a vacation of an earlier adjourned date of November19.

She said the adjournment was because there was a pending appeal at the appellate court, challenging the ruling of the trial court, which earlier declared section 5 of the rules of practice direction, unconstitutional.

Based on the development, Justice Saliu Saidu said that he would not adjourn the case for continuation of trial, but for mention, since there was a pending appeal.

The accused were re-arraigned before Justice Saidu on February 20 this year, on the amended charge and they had both pleaded not guilty to the charge

After the arraignment, the prosecutor, Kemi Pinhero (SAN) had asked the court for a date for trial, so as to fast track trial in line with the rules of practice direction.

In response, counsel to the first accused, Chief Anthony Idigbe (SAN), had opposed the submission of the prosecution, adding that practice direction was not applicable in the instant situation.

Justice Saidu had in a ruling, upheld the submissions of defence counsel, holding that section 5 of the rules of practice direction was unconstitutional and not binding on defence.

Dissatisfied with the ruling, the EFCC has approach  the Court of Appeal in Lagos to nullify the ruling. 

In the charge, which was first filed in 2009, the accused were alleged to have granted credit facilities, manipulated shares and committed general banking fraud to the tune of over N125 billion.

The offence is said to contravene the provisions of sections 7(2) (b) of the Advanced Fee Fraud Act, 2004, and sections 15(1) of the Failed Banks (Recovery of debts) and Financial Malpractices in Banks Act, 2004.

It also contravenes the provisions of sections 516 of the Criminal Code Act, Cap C38, Laws of the Federation, 2004 as well as sections 14 (1) of the Money Laundering Prohibition Act, 2004.