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Innoson vs GTBank: How Industrialist Defrauded Bank; Bullied EFCC, Police And Courts With his Political Connections [DOCUMENTS ATTACHED]

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7 years ago

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innoson motors

Mr. Innocent Chukwuma, the Anambra-born industrialist and Chairman of Innoson Nigeria Limited, may have succeeded playing the victim with his arrest, on Tuesday, by the Economic and Financial Crimes Commission (EFCC), but there are clear indications that he attempted to defraud Guaranty Trust Bank (GTBank) through forgery of documents.

Mr. Chukwuma was released on bail on Thursday.

Part of Mr. Chukwuma’s success manifested in his arrest being promoted as an ethnically biased move as well as one to hamper a local industrialist. Social media platforms have continued to fizz with this narrative, with many users threatening to close their accounts with GTBank and urging others to do same.

GTBank, Chukwuma’s supporters argued, is out to do Mr. Chukwuma and Innoson Motors in because of his ethnicity.

The saga dates back to 2009, when GTBank, with which Innoson Motors is a customer, granted the auto assembly company a series of credit facilities totaling N2.4 billion. The loans represented part-finance and working capital for the importation of new motorcycles, motorcycle spare parts, agricultural machinery spare parts and plastic manufacturing equipment.

Sources told SaharaReporters that under the loan terms agreed by Mr. Chukwuma on behalf of Innoson, proprietary interest in the imported items was exclusively consigned in favor of the GTBank.

This, in strict terms, means that the bank owned the imported goods. As such, the original shipping documents (Bills of Lading), exclusively obtained by SaharaReporters, sources further disclosed, were duly held by GTBank and remain in its possession.

Innocent Chukwuma

On account of the bank’s exclusive ownership of the goods, explained those knowledgeable about the transaction, only it can transfer ownership to Innoson or any other party.

A condition in the loan agreement for the release of the goods by the bank to Innoson was the payment of 25% of the value of each Letter of Credit transaction by the auto assembly company.

SaharaReporters learned the Mr. Chukwuma, on behalf of Innoson, approached GTBank requesting the release of the shipping documents without fulfilling the condition requiring him to pay payment the agreed 25% of the value of each letter of credit. On account Innoson’s failure to meet the condition in the agreement, the bank turned down the request.

What followed stunned and riled the bank. It discovered in June 2011 that the shipping documents for goods it declined to release to Innoson because of its failure to meet the agreed conditions had fraudulently been obtained by Innoson.

SaharaReporters learned that Innoson, on the instruction of its Chairman, had forged GTBank’s endorsement on the Bills of Lading to the shipping line, fraudulently clearing the imported items, which consigned to the bank.

This means that being the property of the bank, the items should never have been cleared from the ports without the bank endorsing the original shipping documents in favor of Innoson or any third party.

What Innoson did, revealed sources, was to forge the signatures of Messrs Taofeek Olalere, Dan Attah, Bunmi Adeyemi and Amazu Amalachukwu, all GTBank staff, as well as the bank’s stamp on all the shipping documents to clear the goods at the ports. Insiders said the bank never endorsed or transferred the shipping documents to Innoson, as their original copies remain in the bank’s possession.

Displeased, the bank reported the matter to the Police, to which, insiders further said, Mr. Chukwuma told that the documents were released to him by the bank. The Nigerian Police launched an investigation into the bank’s complaint. This took in a forensic examination of the signatures on the documents and established that they were forged by Mr. Chùkwuma and his accomplices to fraudulently clear the goods the Nigerian Ports Authority (NPA).

Police sources said what they knew was that Innoson and Mr. Chukwuma deliberately designed a scheme to steal from the goods from the bank through forgery and misrepresentation. The theft of the goods, which served as the bank’s collateral, left a debt in excess of N1.6billion as at September 26, 2012.

The Innoson Chairman was arrested and interrogated the EFCC. After the interrogation, EFCC sources disclosed, he agreed to make monthly payments into Innoson’s account until his company’s indebtedness to the bank is completely liquidated.

However, that agreement was breached, said sources. In September 2013, GT Bank expressed its disappointment by petitioning the Police, which deemed Mr. Chukwuma culpable. He was subsequently charged to court.

The case (No. FHC/L/565C/2015) is currently pending before Justice J. Faji of the Federal High Coury, Ikoyi, Lagos. The Police slammed charges of fraudulent clearance of goods, forgery, illegal conversion, stealing and conspiracy on Innoson Nigeria Limited, Mr. Chukwuma, Charles Chukwuma, Maximian Chukwura, Mitsui Osk Lines and Annajekwu Sunny. At the last proceedings, the matter was adjourned to November 21, 2017 for arraignment/or hearing of a motion for issuance of Bench Warrant.

Innoson would later approach GT Bank for a reconciliation of his account and pleaded for debt forgiveness.

The bank agreed and reconciliation was carried out on the account, which had a debit balance of N1,654,481,895.04 as at December 31, 2011. On account of the conciliatory posture by Mr. Chukwuma and EFCC intervention, GTBank, said authoritative sources, agreed to forego the N559m, which represented default charges that had accrued on the account and debited in line with the loan agreement it and Innoson.

On the basis of this, the bank decided to accept from Innoson the sum of N1.095billion as full and final payment of the company’s indebtedness to the bank with the proviso that it must be paid in full not later than (30) days from the date of the letter written conveying the decision was written to Innoson.

Innoson, however, would stun the bank again when it filed a suit (No: FHC/AWK/CS/2012) against the bank at the Federal High Court, Awka, Anambra State, claiming that its account with the bank had been debited for excess charges totaling N559,374,072.09. He obtained a judgment in excess of N4.7billion against the bank from a judge said to be his ally.

This was despite breaching the amicable agreement between the company and the bank for a full and final settlement of N1,095,107,822.95, which saw the bank forgo the sum of N559,374,072.09, which accrued on its account during the period which he abandoned it.

To stall the criminal proceedings against him and his company, Mr. Chukwuma instituted suits at the Federal High Court, Abuja, as well as the Federal High Court, Awka in January 2014 against the Inspector- General of Police, Nigeria Police Force and investigating officer(s), seeking declaratory and injunctive reliefs, including orders restraining the Police from commencing criminal proceedings against him and his company.

To thwart the bank’s recovery bid as well as distract it from focusing on the criminal action and civil actions filed for recovery of the debt, Mr. Chukwuma and his company, revealed sources, have continued to institute lawsuits before various courts, claiming frivolous and outrageous sums against the bank.

Giving reasons for Mr. Chukwuma’s arrest, the EFCC, in a statement signed by Mr. Wilson Uwujaren, its spokesman, Mr. Chukwuma refused to respond to invitations by the commission after initially being granted administrative bail by the commission, while his surety could also not be found. He was also said to have resisted arrest.

“Unfortunately, the industrialist resisted arrest and stirred controversy by bringing six truck-loads of thugs to block the entrance to his Plot W1, Industrial Layout, Abakaliki Road, Emeni, Enugu, home.

“This was after he initially misled the Police Command by informing them that his home had been invaded by armed robbers and kidnappers despite the fact that operatives of the commission duly identified themselves to policemen guarding his home,” said the EFCC.

His thugs added the commission, assaulted its operatives, forcing the EFCC to call its Enugu office for reinforcement.

“In all of this, the commission’s operatives acted with decorum and civility. No one was manhandled or assaulted by the EFCC team and not a single shot was fired, despite the provocation.

“Chief Chukwuma and his brother, Charles Chukwuma (who is still at large), are being investigated by the Insurance and Capital Market Fraud Section of the Commission’s office in Lagos over matters bordering on N1, 478, 366, 859.66 fraud and forgery.

“The industrialist, among other infractions, allegedly used forged documents to secure tax waivers,” said the commission.

GT Bank, on Thursday, released a guarded statement, saying it would not want to speak about some of the allegations because they are already before the courts. It, however, maintained that it would take necessary legal steps when its rights are infringed upon.

What the bank did not say, explained sources, was that in responding to Innoson’s motion for a stay of criminal proceedings at the Court of Appeal, Justice J.S Ikyegh, on September 17, dismissed the motion as unmeritorious and ordered that proceeding in the criminal case against Innoson should proceed.

On October 12, the Police filed an application (No. FHC/L/565C/2015) for the issuance of bench warrant against Mr. Chukwuma, Charles Chukwuma and Annajekwu Sunny for fraudulent clearance of goods, forgery, conversion, stealing and conspiracy presently pending before Federal High Court, Ikoyi, Lagos.

The current hoopla quickly became political as Mr. Chukwuma mobilized lawmakers in the Senate who in turn began pushing an ethnic narrative over his arrest and detention by the Economic and Financial Crimes Commission. Sources told Saharareporters that Mr. Chukwuma had become a law unto himself, using political connections to circumvent official scrutiny. They said during ex-President Goodluck Jonathan’s era, Mr. Chukwuma was untouchable. During one of his court cases in Lagos, A federal judge who appears to be at his mercy of Mr. Chukwuma’s lawyers Justice Saliu Saidu of the Federal High Court in Lagos had to warn him that he would not be intimidated.

After his arrest by the EFCC, the forces against the anti-corruption Czar, Ibrahim Magu at the Nigerian Senate came out of the woodworks, even with the Senate President, Bukola Saraki making a ridiculous assertion with a rhetoric question on the floor of the Senate wondering if the FBI would intervene in a dispute between Ford Motors and an American bank.

The worsen the case of official collusion with Mr. Chukwuma, the Attorney General of the Federation, Abubakar Malami claimed he had not been briefed about Mr. Chukwuma legal issues, but a cursory check shows that the police is prosecuting Chukwuma through the office of the AGF.

Yesterday, a lawsuit filed by lawyers before Justice Rabiu-Shagari of the Federal High Court in Lagos by Mr. Chukwuma’s lawyers challenging his detention through a fundamental rights enforcement lawsuit was curiously withdrawn by his lawyers, a sign that he had achieved his objectives using his political connections to bully his bank and browbeat the courts and law enforcement agencies investigating the case of forgery against him.

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Christmas, Cash Scarcity and Attacks against CBN’s Proactive Stance – Toni Kan

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17 hours ago

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December 20, 2024

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Let us look at a few figures……..

Nigeria’s population is put at a little over 200 million people while the UK population is about 68 million. This means that the Nigerian population is about three (3) times that of the UK.

As at June 2023, the UK banking system had about 49,421 Automatic Teller Machines and almost 2.3 million Point of Sales Terminals.

By contrast, the Nigerian banking system had a little over 22,600 ATMS according to TechCabal and is projected to reach 29,000 by 2029 according to Statista. Conversely, Nigeria boasted 1,665,664 POS terminals as at December 2022. Meanwhile, figures attributed to Inlaks, which is described as Nigeria’s biggest ATM operator, suggest that Nigeria needs at least 60,000 ATM machines to serve its population of over 200 million.

Where is all this going? Well to borrow a phrase from the comedian, Jeff Foxworthy; hold my beer, sir!

Those who know me well know what my favourite Igbo proverb is. It goes something like this in translation – “the disease that gives you warning, does not kill you!” It is a proverb that underlines the imperative of proactivity, what the Igbo people might call igba mbo.

So, I was really pleased when I read that the Central Bank of Nigeria (CBN) was taking a proactive step to ensure that there is no cash scarcity this Christmas.

Nigerians love cash and that love can become obsessive and reach fever pitch at festive periods. Have you been to Abeokuta during Ojude Oba? Or to Kano during the Durbar? Or Onitsha during Ofala? Those are regional festivities. So, you can imagine what happens at Christmas!

All efforts at driving a cashless policy and economy seem to collapse when festivities come around the corner and this year, the CBN was quick to take proactive action weeks before the festivities reach fever pitch. But the apex bank’s interventions seem to be having unintended consequences even though as at the time of writing this, the apex bank had put out three (3) different circulars and one press release around the issue.

First, is a not-so-surprising pushback from the banks and then a seeming lack of understanding by the general public no thanks to rampant mis-information.

The issue of cash scarcity around the Christmas period worsened under the sway of Godwin Emefiele at the CBN. The fall-out from the disastrous naira redesign he superintended over at the apex bank continues to haunt our banking vaults but Olayemi Cardoso and team are focused on making sure we turn that dark corner.

Let us begin with the first circular dated November 29, 2024: “Cash Availability Over the Counter in Deposit Money Banks (DMBs) and Automated Teller Machines (ATMs).” The circular had two sections: DMBs were directed to ensure efficient cash disbursement to customers Over the Counter (OTC) with the CBN insisting that it will enforce the directive and ensure compliance.

Secondly, members of the general public were encouraged to report instances where they are unable to get cash Over the Counter or through ATMs. The CBN ended with a list of 37 email addresses and phone numbers across the 36 states and FCT for reporting issues.

On paper, it looked like Nigerians and the cash worries were all sorted this Christmas but it didn’t take time for the expected pushback to occur. News reports began to circulate of long queues at banks and of ATMs struggling to dispense more than N10,000. “NAN reports that long queues have emerged at ATM stands around the city as residents struggle to have access to cash…Meanwhile POS operators are currently taking advantage of the situation to demand exorbitant charges on transactions.”

While Nigerians were still trying to make sense of the reason behind the long queues, another report had an official of the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASBIFI) pointing fingers. According to the report, “ASSBIFI President, Olusoji Oluwole, told the Punch that “Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds.”

As if in response to the charge, the apex bank responded “with their full chest” as we say on social media with a December 13, 2024 circular – Updated Penalty on Inappropriate Cash Disbursement Practices by Deposit Money Banks (DMBs) in which it condemned the “illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify naira bank notes thus impeding efficient and effective cash distribution to banks’ customers and general public.”

Giving bite to the circular the CBN said any bank found culpable of “facilitating, aiding or abetting, by direct actions or inactions, illicit flow of mint banknotes” would be fined N150m and then hit with the full weight of the relevant provisions of BOFIA 2020.

This time no pointing fingers were seen but the CBN was not done. Eager to completely squelch rumours around “the validity or lack thereof of the old ₦1000, ₦500, and ₦200 banknotes” the refusal of which was contributing to the long queues, the CBN issued a press release shutting it down: “The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old ₦1000, ₦500, and ₦200 banknotes currently in circulation….the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the ₦1000, ₦500, and ₦200 denominations of the Naira indefinitely.”

The third circular from the CBN which it said was in line with its “ongoing efforts to advance a cash-less economy” seems to have hit a raw nerve among Nigerians who, as we have already noted, love their cash even though it is now an offence to spray the naira.

News outlets also seemed to also get it wrong. The CBN circular of December 17, 2024 did not put a limit on how much cash you and I can withdraw from banks. The limits imposed in the circular titled – CIRCULAR ON CASH-OUT LIMITS FOR AGENT BANKING TRANSACTIONS – are “for agency banking operations” and as reported by TheCable is among interventions intended to address “identified challenges, combat fraud and establish uniform operational standards across the industry.”

Now, can I have my beer back as I attempt to outline how easily well-intentioned policies are rubbished by that euphemistically named malady known as the “Nigerian factor”.

The ASBIFI official was quick to point fingers even though simple logic can show that Over the Counter cash scarcity and at ATMs has little to do with the CBN or its cash distribution operations but with our Nigerian any-how-ness.

Let’s consider this. How is it that banks cannot fill up 22,600 ATMS, most of which are within or in close proximity to their branches but can afford to give cash to 1.6m PS operators? Doesn’t this seem to suggest that someone is out to make sure that the ATMs don’t have cash while the PoS operators continue to make a killing?

And why does it seem right that Nigerians should continue to pay between N250 and N400 per N10,000 withdrawals to PoS operators when ATM charges are far lower at N35 and only after you have made multiple withdrawals from other bank ATMs?

Oh, bankers have said ATMs are difficult to maintain on account of several factors and this takes us back to the figures we shared from the UK. Of the 49,421 ATMs in the UK, “78% were free to use” during the period under reference. So, why do we always talk about maintenance when it comes to Nigeria? Imagine if we paid N10 per ATM transaction, wouldn’t that be better than paying N250 to a PoS operator for every N10,000 withdrawn?

And for context, in 2014, data on various e-payment channels indicated that Automated Teller Machines (ATMs) remained the most patronised payment mode in Nigeria accounting for 89.7% of all electronic transactions with PoS transactions accounting for just 4.58 per cent. Today, the reverse is the case and the question to ask remains; what changed? The answer has something to do with financial inclusion but that is a topic for another day.

As you ponder that poser, ask yourself why is it always difficult to get mint bank notes over the counter in the banks meanwhile, step into any event center and you will see some hawker waving bright new notes in your face. Surely, they don’t get those notes from the CBN.

When the CBN referenced the Supreme Court ruling granted on November 29, 2023 to the effect that the old notes are still legal tender, their X Formerly Twitter page was filled with bile. But what many are failing to contend with is that the current leadership is only trying to make sure the mess they inherited doesn’t get worse.

As we prepare for Christmas and the New Year the advice is simple; go to your bank and ask for your money or withdraw from the ATMs and if you suspect any funny business, email or call the hotlines provided by the CBN.

Say no to any-how-ness this yuletide.

 

Toni Kan is a PR expret and financial analyst.

 

 

 

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Aviation Minister Leads Delta APC Leadership To National Chairman, Advocates Unity Ahead of 2027 Elections

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2 days ago

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December 19, 2024

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The Honourable Minister of Aviation and Aerospace Development, Olorogun Festus Keyamo SAN, today, led the leadership of the All Progressives Congress (APC) in Delta State, to the National Chairman of the APC, His Excellency Dr. Abdullahi Ganduje, at the APC National Headquarters in Abuja.

 

During the meeting, the Delta APC leaders briefed the National Chairman on the current state of the party in the state and the ongoing efforts to reconcile party members. They presented the report of the Reconciliation Committee, which has been approved by the Delta State APC State Working Committee (SWC) and earlier submitted to the National Chairman.

The delegation emphasized the importance of collaboration, stating that the era of a one-man leadership style in Delta APC is over. They reaffirmed their collective commitment to working as a united team to reposition the party and strengthen its prospects ahead of the 2027 general elections. This new direction was evident in the composition of the high-powered delegation that visited the National Chairman.

 

In his response, the National Chairman, Dr. Abdullahi Ganduje, commended the Delta APC leadership for their efforts to foster unity and ensure the party’s victory in future elections. He assured them of his commitment to work with Delta APC leaders, including those absent from the meeting, to build a united and formidable front. During the meeting, Dr. Ganduje also spoke with Delta State APC Chairman, Elder Omeni Sobotie, who was unavoidably absent due to health reasons, and wished him a swift recovery following his recent surgery.

 

The delegation to the meeting comprised prominent leaders of the Delta APC, including: Olorogun O’tega Emerhor, OON-Founding Leader of APC in Delta State,

Elder Godsday Orubebe- Former Minister,

Senator Ede Dafinone,

Senator Joel Thomas-Onowakpo,

Rev. Francis Waive- Member, House of Representatives and

Hon. Victor Ochei-former Speaker, Delta State House of Assembly.

The meeting was concluded with a renewed sense of purpose among the Delta APC leaders and a shared commitment to repositioning the party for electoral success in 2027.

 

 

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Just In: Alleged N110.4billion Money Laundering: Yahaya Bello Begs Court: Spare me Landed Property in Maitama for Bail.

Published

2 days ago

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December 19, 2024

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A former governor of Kogi State, Mr. Yahaya Bello has pleaded with Justice Maryann Anenih of the Federal High Court sitting in Abuja to spare him the possession of a landed property in the Maitama district of Abuja as one of the conditions for bail.

 

Details later…

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