FG Accuses Mortgage Bank MD of N32.6m Fraud

Federal government has dragged, Bayo Adewakun, a former managing director of Mortgages PHB Limited before the Federal High Court in Lagos, for allegedly defrauding the mortgage bank of the sum of N32, 632, 667.91 million.

Adewakun was arraigned before Justice Saliu Saidu on four-count charge of granting loan facilities without getting the mandatory approval from the board of the Bank.

The former bank chief, 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.

Adewakun was specifically accused of recklessly granting loan facilities of more than 20 percent of shareholder’s funds to his firm, B. Waks Consultant, situated at 72, Queen Street, Alagomeji, Lagos.

The defendant charged to court by the Department of Public Prosecution (DPP) of the Office of Attorney-General of the federation (AGF).

Mrs. Gladys Ezinwa-Ukoha, prosecutor, claimed that the defendant, allegedly granted a facility of N10 million, N5 million and N17. 632, 667.91 million, to his firm, B. Waks Consultant, without adequate security as required for such facilities.

Ezinwa-Ukoha also informed the court that the defendant used the said facilities to partly finance the completion of a Housing Development at Victoria Garden City (VGC) for outright sale.

The alleged offence according to the prosecutor, is contrary to Section 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.

However, the defendant pleaded not guilty to the charges,

B Joseph, defence counsel, told the court that they have filed a bail application on behalf of their client and that it has been served on the prosecution.

Joseph, therefore urged the court for a short adjournment for the hearing and determine of the application.

Ezinwa-Ukoha, admitted being served with the application but said she needed to go through the application and file her response.

Justice Saidu adjourned the matter to March 16 to hear the application.

The judge, however, ordered that the defendant be kept in the custody of Nigerian Correctional Services (NCS) pending the hearing.