FG Arraigns British National, Former Gulf Bank MD Over Alleged N15.7b Fraud

The defendants have been charged with a 28-count amended indictment, which includes allegations of fraud, theft, and illegal appropriation of funds from Gulf Bank.

Lagos, Nigeria — The Nigerian government has re-arraigned a former Director of the defunct Gulf Bank Plc, Johnson Adeyeba, and a British national, Gareth Wilcox, alongside four others at the Federal High Court in Lagos over an alleged N15.7 billion fraud.

The accused include Babajide Rogers, the former Managing Director of Gulf Bank, and Uche Uwechia, the bank’s former Legal Advisor and Secretary. Also facing charges are the Managing Director of Ibom Power Company and representatives from Lyk Engineering Company.

The defendants have been charged with a 28-count amended indictment, which includes allegations of fraud, theft, and illegal appropriation of funds from Gulf Bank.

According to the prosecution, the accused used Ibom Power Company and Lyk Engineering to siphon money through bridging loans and overdraft facilities, bypassing standard financial protocols.

One of the allegations involves a N450 million loan granted to Ibom Power Company without the necessary collateral.

The prosecutor, Rotimi Jacobs (SAN), noted during the hearing that the case, which was initially filed in 2013, has faced multiple delays due to legal challenges. Proceedings continue under Justice Daniel Osiagor.

Jacobs informed the court that the alleged offenses took place on April 1, 2001, in Lagos. He accused the third defendant of falsely denying liability for the fourth and fifth defendants regarding both dollar and naira loans granted by Gulf Bank, with the intent to evade repayment.

Furthermore, the first, second, and sixth defendants are accused of recklessly approving a $20 million bridging loan facility to Ibom Power Company Limited on December 24, 2002, without adequate security, violating established banking practices.

On the same day, the first to third defendants reportedly granted loans amounting to $9.2 million, N150 million, and N10 million to the same company.

Additionally, Adeyeba, Rogers, and Uwechia allegedly approved a N1.454 billion loan to Lyk Engineering Company Limited on April 25, 2001, while Wilcox, serving as Managing Director of both Ibom Power and Lyk Engineering, is accused of issuing a false statement regarding the company’s debenture, which was only stamped for N10 million, to evade repaying the loan.

In January 2001, the defendants purportedly granted Lyk Engineering a $17 million loan to fund its equity contribution in Ibom Power, in violation of banking regulations requiring adequate security. Between 2001 and 2004, Adeyeba, Rogers, and Uwechia were further accused of negligently granting Lyk Engineering a $1.8 million loan for operational and administrative expenses.

The six defendants are also alleged to have illegally converted N1.8 billion from Gulf Bank between 2003 and 2004, transferring it to Lyk Engineering for operational expenses, with knowledge that the funds were criminal proceeds.

The indictment also claims that Adeyeba, Rogers, and Uwechia recklessly approved a $9.1 million loan for consultancy, design, and soil investigations for a non-existent refinery project involving Lyk Engineering, Lyk Corporation, and Centum Overseas Limited. They are accused of using their positions to fraudulently convert N15.76 million to fund personal businesses during this period.

Moreover, the defendants allegedly diverted funds to support Wilcox’s companies, purchase a vessel, and finance a non-existent refinery. Adeyeba specifically faces accusations of fraudulently converting two plots of land—Plots 22 and 23, Zone K, Federal Government Layout, Banana Island, Lagos—worth N600 million, using fraudulent Certificates of Occupancy dated June 20, 2003.

Uwechia, a lawyer, is accused of assisting the former bank chairman in converting the land for personal use.

The charges against the defendants were brought under various sections of the Failed Banks (Recovery of Debt) and Financial Malpractices in Banks Act, Cap F2, 2010, with penalties prescribed under sections 16(1), (2), 18(1), (2), and 19(4).

All defendants pleaded not guilty, and Justice Osiagor has adjourned the case to December 13 for trial.