The Federal High Court in Ikoyi, Lagos, on Wednesday struck out the N12.3 billion fraud charge filed by the Economic and Financial Crimes Commission (EFCC) against the Chairman of Honeywell Group, Oba Otudeko, following the withdrawal of the case by the anti-graft agency.
Delivering the ruling, the trial judge, Chukwujekwu Aneke, gave the order after EFCC lawyer, Rotimi Oyedepo, who is a Senior Advocate of Nigeria (SAN), informed the court that the matter had been amicably resolved between the nominal complainant, First Bank of Nigeria, and the first defendant, Mr Otudeko.
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The EFCC had filed a 13-count against Mr Otudeko; a former Managing Director of First Bank, Olabisi Onasanya; a former Honeywell board member, Soji Akintayo; and a firm, Anchorage Leisure Limited.
The defendants were accused of fraudulently obtaining N12.3 billion from First Bank by misrepresenting the funds as credit facilities requested by V-Tech Dynamic Links Ltd. and Stallion Nigeria Ltd between 2013 and 2014.
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At Wednesday’s proceedings, Mr Otudeko’s lawyer, Bode Olanipekun, also a SAN, told the court that all issues leading to the charge had been resolved.
Mr Oyedepo, representing the EFCC, confirmed this and said the resolution was formally communicated to the Attorney General of the Federation (AGF).
He referenced a letter dated 16 July in which First Bank formally withdrew its complaint and a follow-up letter on 21 July reiterating that the parties had fully resolved their differences.
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Mr Oyedepo added that Mr Otudeko had refunded the disputed funds to First Bank.
“In the interest of justice and to prevent abuse of the court process, the Attorney General has decided to discontinue the prosecution,” Mr Oyedepo submitted, citing Section 180 of the Administration of Criminal Justice Act (ACJA).
Other defence lawyers— Adeyinka Olumide-Fusika, SAN (for Mr Onasanya); Tunde Babalola, SAN (for Mr Akintayo); and Charles Adeogun-Phillips, SAN (for Anchorage Leisure Ltd.)—confirmed the amicable settlement of the matter.
Mr Aneke subsequently struck out the case.
Honeywell welcomes withdrawal
Following the court’s ruling, the Honeywell Group, in a statement signed by its General Counsel, Olasumbo Abolaji, welcomed the development and described it as a reaffirmation of Mr Otudeko’s integrity.
“Honeywell Group confirms that the legal proceedings initiated by the EFCC against our Chairman, Dr. Oba Otudeko, CFR, in connection with matters relating to First Holdco Plc, have been formally withdrawn,” the statement read.
“At no point was there any finding or admission of wrongdoing, and this conclusion further affirms what we have always maintained — that this was a commercial transaction, investigated by the EFCC and resolved eight years ago,” it added.
The Group mentioned Mr Otudeko’s six-decade-long contribution to Nigeria’s economy, banking, and public service, and reaffirmed its commitment to value creation in food, energy, infrastructure, and financial services.
Background
The case had a lengthy legal history. The EFCC initially filed the charges in January, accusing the defendants of conspiring to fraudulently obtain credit facilities under false pretences.
The charge alleged that forged documents, including letters of application purportedly from V-Tech Dynamic Links Ltd, were presented to First Bank to secure the funds.
In count 13 of the charge specifically alleged that Otudeko, while serving as Chairman of First Bank Plc, failed to declare a personal interest in a loan facility worth N6.15 billion allegedly sought by V-Tech Dynamic Links Ltd.
The case first came up for arraignment on 20 January, but the defendants were absent. Their counsel argued that they were unaware of the charge until it appeared in the media.
The court then ordered substituted service of the charge.
Subsequent court appearances were marked by preliminary objections from defence lawyers, who challenged the jurisdiction of the court and sought to quash the charge.
The EFCC, however, insisted that the arraignment must proceed before any objections could be heard.
Mr Otudeko’s lawyer later informed the court that the defendant was under medical review in the UK and unable to appear physically. Meanwhile, negotiations for settlement progressed behind the scenes.
By 8 May, the court had adjourned the case for a “report on settlement and/or arraignment” based on updates from both the defence and prosecution.
READ ALSO: How EFCC uncovered alleged N5.78bn fraud linked to ex-Kwara governor administration – Witness
On March 17, it was disclosed that the Attorney General of the Federation had convened meetings with parties involved, aiming for peaceful resolution.
Ultimately, the matter was resolved out of court, paving the way for the case to be struck out on 23 July.
The development came on the heels of the decision by Mr Otudeko and Oye Hassan-Odukale – two of the top shareholders of First HoldCo Plc – to offload their stakes in the financial services group last week, easing the path for Femi Otedola, its chair and biggest shareholder, to firm up his holding in the entity.
A total of 10.43 billion shares, equivalent to nearly 25 per cent of the group’s outstanding shares, were traded off-market in 17 negotiated deals on 16 July at N31, PREMIUM TIMES reported.
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