Former Managing Director of the Mortgage PHB Limited, Bayo Adewakun, has been arraigned before a Federal High Court, Lagos for allegedly defrauding a mortgage firm of the sum of N32, 632, 667.91 million.
Adewakun was arraigned before Justice Saliu Saidu by the office of Department of Public Prosecution (DPP) of the Office of Attorney-General of the Federation (AGF), on four counts charge of reckless granting of loan facilities without having mandatory approval from the Bank.
Apart from allegedly defrauding the bank of the said sum, he was also accused of have recklessly granting loan facilities of more than 20 percent of shareholders funds to his firm, B. Waks Consultant.
He was alleged to have committed the offence between April 29, 2014 and June 28, 2019, while at the helm of affairs of the mortgage firm.
The prosecution counsel, Mrs. Gladys Ezinwa-Ukoha, said the offences are contrary to 15(1)(a)(i) of the Failed Banks (Recovery of Debts and Financial Malpractices in Bank Act) CAP F2, Laws of the Federation of Nigeria 2004 and punishable under Section 16(1) (3) of the same Act.
And sections 20 and 18(a) of the Banks and Other Financial Institution Act (BOFIA) CAP F2 Laws of the Federation of Nigeria 2004 and Punishable under under Section 18(2) of the same Act.
The prosecutor alleged that defendant recklessly granted a facility of N10 million, N5 million and N17. 632, 667.91 million, to his firm, B. Waks Consultant, without adequate security for such facilities.
Also, the defendant was said to have used the said facilities to partly finance the completion of a Housing Development at Victoria Garden City (VGC) for outright sale.
The defendant however pleaded not guilty to the charges. Following his plea of not guilty, the prosecutor asked the court for a trial date.The defendant’s counsel, S. B Joseph and A. A. Kelani told the court that they have filed their client’s bail application and has been served on the prosecutor.The counsel pleaded for a short date to hear and determine the bail application.The prosecutor, Mrs. Ezinwa-Ukoha, admitted being served with the application but said she needed to go through the application and file her response.Justice Saidu subsequently adjourned the matter to March 16, 2020 for hearing and determination of defendant’s bail application and ordered that the defendant be remanded in the custody of Nigerian Correctional Services (NCS) till the determination of the bail application.
