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MONUMENTAL FRAUD: COURT ORDERS UNION BANK TO PAY BILLIONS TO LATE OGUNDE’S ESTATE

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3 months ago

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FULL DETAILS OF HOW THE BANK FRAUDULENTLY SOLD DESEASED CUSTOMERS PROPERTY AND DISOBEYED COURT ORDER TO PRODUCE CUSTOMER’S BANK STATEMENT

 

 

Justice Ibironke Harrison of a Lagos High Court in Tafawa Balewa Square has held that Union Bank perpetrated monumental fraud in the selling of a property owned by the late Otunba Adedoyin Olayide Ogunde, to offset a loan debt.

In the judgement delivered after 25 years of legal tussle, Justice Harrison found out that the sale of late Ogunde’s property situated at old Ikoyi, Lagos, by Union Bank to offset a loan facility by the deceased was conducted in bad faith and at a significantly undervalued price.

The judge found out that the property worth N142 million was ridiculously sold by Union bank at N30 million.

According to Justice Harrison, the mere fact that Ogunde defaulted in repaying the loan was no valid excuse for the bank to fling his property at ridiculous rates simply for the purpose of realising the debt owed; and doing so at a price that is so low is evidence of fraud.

“The only obligation incumbent on a mortgagee under a power of sale of his mortgage is that he should act in good faith. The court will always be on the lookout that the mortgagee acts bonafide and observes reasonable precautions to obtain not the best price, but a proper price.

“By the sale of Plot 6A, the bank had fully realised its money and had some balance to remit to the family. Without remitting the balance, it went ahead to sell the rest of the buildings.

“By going against what it had told Ogunde’s personal representatives on the partition of the property, the Bank’s action smacks of fraud, collusion and definitely does not show good faith.

“Union Bank further failed accountability principles when it withheld vital documents, including the deceased’s statement of account, from the court, showing that those documents, if produced, could have impacted negatively on the bank”, the judge ruled.

In her judgement, Justice Harrison held that Union Bank failed to act in good faith in discharging its duties as a trustee for the deceased’s estate, as the sale of the property was conducted privately rather than by auction as instructed.

Justice Harrison noted that the property, comprising nine luxurious flats and additional plots, was sold for N30 million by the bank has fully covered the deceased’s outstanding debt of over N14 million.

“Further sales of additional plots for N30 million each were also undervalued. There was also lack of transparency regarding the balance utilization after settling the debt, suggesting fraud and collusion. While the sales could not be overturned due to insufficient direct evidence of collusion by buyers, the claimants were entitled to damages”, the judge further held.

Consequently, Justice Harrison ordered the bank to pay N112 million to the children of the deceased. The court also ordered interest payment on the money from 1998 until the judgment date at the prevailing Central Bank of Nigeria rate, and 10 per cent per annum from the judgment date until full payment.

Going by this court’s directive, the bank is liable to pay more than N10.5 billion as at 2024. .

The claimants in the suit marked LD/2624/1999 are the children of the deceased, while Olushola Ogunde, Olubunmi Ashiru, Kehinde Ogunde, Olayinka Madden (executor of Ogunde’s estate), the Probate Registrar of the Lagos High Court, and Union Bank of Nigeria were joined as co-defendants as 1st to 6th defendants in the suit.

In the suit, the Ogunde family contended that the sale and the processes relied on by the bank to dispose of their benefactor’s property was characterised by fraud and collusion.

The family further argued that the assets were of a higher value than what the bank placed on it, and that there was a collusion between the bank and the purchasers.

Union Bank opposed an amendment to the claimants’ statement, arguing it was statute-barred. However, in May 2017, Justice Morenike Obadina dismissed this objection, allowing the amendment.

In the suit, the claimants are seeking among others, a declaration that granting of Probate by the 5th defendant of the last Will and Testament of Otunba Adedoyin Olayide Ogunde (deceased) dated 2nd August, 1995 on the 17th of November, 1997 to the 1st to 4th defendants as executors is wrongful, null and void, the same being inconsistent with the provisions and intendment of the Will as made by the Testator.

They were also seeking an order of injunction restraining the 6th defendant, its servants, agents, privies, assigns or any other person acting for it from disbursing, dissipating or otherwise part with the possession of the balance due to the Estate of Otunba Adedoyin Olayide Ogunde (deceased) on the sale of 6, Moore Road, Ikoyi, Lagos, pursuant to the legal mortgage in that respect to any person until the final determination of this suit.

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Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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3 hours ago

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November 7, 2024

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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16 hours ago

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November 6, 2024

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

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17 hours ago

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November 6, 2024

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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