Court docket strikes out N12.3bn fraud cost in opposition to Honeywell chairman Otudeko as EFCC withdraws case

EFCC gave a purpose for withdrawing the fees in opposition to Oba Otudeko

The Federal Excessive Court docket in Ikoyi, Lagos, on Wednesday struck out the N12.3 billion fraud cost filed by the Financial and Monetary Crimes Fee (EFCC) in opposition to the Chairman of Honeywell Group, Oba Otudeko, following the withdrawal of the case by the anti-graft company.

Delivering the ruling, the trial choose, Chukwujekwu Aneke, gave the order after EFCC lawyer, Rotimi Oyedepo, who’s a Senior Advocate of Nigeria (SAN), knowledgeable the courtroom that the matter had been amicably resolved between the nominal complainant, First Bank of Nigeria, and the primary defendant, Mr Otudeko.

The EFCC had filed a 13-count in opposition to Mr Otudeko; a former Managing Director of First Financial institution, Olabisi Onasanya; a former Honeywell board member, Soji Akintayo; and a agency, Anchorage Leisure Restricted.

The defendants had been accused of fraudulently acquiring N12.3 billion from First Financial institution by misrepresenting the funds as credit score services requested by V-Tech Dynamic Hyperlinks Ltd. and Stallion Nigeria Ltd between 2013 and 2014.

At Wednesday’s proceedings, Mr Otudeko’s lawyer, Bode Olanipekun, additionally a SAN, advised the courtroom that each one points resulting in the cost had been resolved.

Mr Oyedepo, representing the EFCC, confirmed this and mentioned the decision was formally communicated to the Attorney General of the Federation (AGF).

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He referenced a letter dated 16 July wherein First Financial institution formally withdrew its criticism and a follow-up letter on 21 July reiterating that the events had absolutely resolved their variations.

Mr Oyedepo added that Mr Otudeko had refunded the disputed funds to First Financial institution.

“Within the curiosity of justice and to stop abuse of the courtroom course of, the Legal professional Normal has determined to discontinue the prosecution,” Mr Oyedepo submitted, citing Part 180 of the Administration of Legal Justice Act (ACJA).

Different defence legal professionals— 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 courtroom’s ruling, the Honeywell Group, in an announcement signed by its Normal Counsel, Olasumbo Abolaji, welcomed the event and described it as a reaffirmation of Mr Otudeko’s integrity.

“Honeywell Group confirms that the authorized proceedings initiated by the EFCC in opposition to our Chairman, Dr. Oba Otudeko, CFR, in reference to issues referring to First Holdco Plc, have been formally withdrawn,” the assertion learn.

“At no level was there any discovering or admission of wrongdoing, and this conclusion additional affirms what we’ve all the time maintained — that this was a business transaction, investigated by the EFCC and resolved eight years in the past,” it added.

The Group talked about Mr Otudeko’s six-decade-long contribution to Nigeria’s financial system, banking, and public service, and reaffirmed its dedication to worth creation in meals, vitality, infrastructure, and monetary companies.

Background
The case had a prolonged authorized historical past. The EFCC initially filed the fees in January, accusing the defendants of conspiring to fraudulently get hold of credit score services below false pretences.

The cost alleged that cast paperwork, together with letters of software purportedly from V-Tech Dynamic Hyperlinks Ltd, had been introduced to First Financial institution to safe the funds.

In rely 13 of the cost particularly alleged that Otudeko, whereas serving as Chairman of First Financial institution Plc, did not declare a private curiosity in a mortgage facility price N6.15 billion allegedly sought by V-Tech Dynamic Hyperlinks Ltd.

The case first got here up for arraignment on 20 January, however the defendants had been absent. Their counsel argued that they had been unaware of the cost till it appeared within the media.

The courtroom then ordered substituted service of the cost.

Subsequent courtroom appearances had been marked by preliminary objections from defence legal professionals, who challenged the jurisdiction of the courtroom and sought to quash the cost.

The EFCC, nonetheless, insisted that the arraignment should proceed earlier than any objections might be heard.

Mr Otudeko’s lawyer later knowledgeable the courtroom that the defendant was below medical overview within the UK and unable to look bodily. In the meantime, negotiations for settlement progressed behind the scenes.

By 8 Might, the courtroom had adjourned the case for a “report on settlement and/or arraignment” primarily based on updates from each the defence and prosecution.

On March 17, it was disclosed that the Attorney General of the Federation had convened conferences with events concerned, aiming for peaceable decision.

In the end, the matter was resolved out of courtroom, paving the best way for the case to be struck out on 23 July.

The event got here on the heels of the choice by Mr Otudeko and Oye Hassan-Odukale – two of the highest shareholders of First HoldCo Plc – to dump their stakes within the monetary companies group final week, easing the trail for Femi Otedola, its chair and largest shareholder, to agency up his holding within the entity.

A complete of 10.43 billion shares, equal to just about 25 per cent of the group’s excellent shares, had been traded off-market in 17 negotiated offers on 16 July at N31.

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