By Kazeem Ugbodaga
Wema Bank Plc has dismissed allegations surrounding the sale of Banana Island properties allegedly linked to the defunct Gulf Bank Plc, describing recent publications on the matter as false, misleading and malicious.
In a statement issued on Friday, the bank said the reports were aimed at distorting facts relating to transactions connected to the recovery of debts owed by the defunct Gulf Bank Plc.
According to Wema Bank, the issue dates back to 2002 when it made an inter-bank placement of ₦4.6 billion with Gulf Bank. The bank explained that by August 2004, the outstanding exposure had reduced to about ₦1.2 billion before the obligation became delinquent.
The bank stated that efforts to recover depositors’ and shareholders’ funds later resulted in criminal investigations involving the former Managing Director of Gulf Bank by the Economic and Financial Crimes Commission.
Wema Bank said investigations by the EFCC revealed that the diverted funds were allegedly used to acquire properties in Banana Island, Lagos, through two companies-Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Engineering Limited.
The bank stressed that both companies were separate legal entities and not subsidiaries or equivalents of Gulf Bank Plc, adding that they were not under the supervision of the Nigeria Deposit Insurance Corporation.
According to the statement, the two firms voluntarily relinquished their interests in the Banana Island properties as part of arrangements to settle Gulf Bank’s indebtedness to Wema Bank following findings from the EFCC’s asset-tracing investigations.
Wema Bank further disclosed that the NDIC had formally acknowledged Gulf Bank’s indebtedness through letters dated September 26, 2007, and June 10, 2009, addressed to the Federal Land Registry and Wema Bank respectively.
The bank said the documents were among materials already tendered before the Federal High Court in Lagos in an ongoing legal dispute.
The financial institution also claimed that after the sale of the disputed properties, the NDIC paid the outstanding shortfall owed to Wema Bank, arguing that such action demonstrated the corporation’s awareness and recognition of the transaction.
“In light of the foregoing, NDIC is precluded from and cannot in good faith contest the relinquishment of those interests or the appropriateness of Wema Bank’s recovery efforts,” the bank stated.
While acknowledging that the NDIC had instituted two separate suits against the bank at the Federal High Court in Lagos in its capacity as liquidator of Gulf Bank Plc, Wema Bank said the matters were now sub judice and declined further comments on issues pending before the court.
The bank, however, maintained that it would deploy all legal means necessary to defend its rights and interests.
Wema Bank reaffirmed its commitment to corporate governance, transparency and regulatory compliance, assuring stakeholders that it remained focused on ethical banking practices and the protection of shareholders’ and customers’ interests.
