By Omoh Gabriel
A London High Court yesterday found Dr. Erastus Akingbola, the erstwhile Managing Director of Intercontinental Bank Plc liable of unwholesome practices and criminal misappropriation of the Bank’s funds to the tune of N164 Billion. The court described the purchase of “shares in a box” as an insider dealing which is not an accepted best practice in civilized business dealing.
However a source close to Dr. Akingbola legal council in London, Peter and Peters law firm said they plan to appeal the judgment as all the needed documentation for the appeal were being assembled in London. But one of Dr. Akingbola aid told Vanguard that they are not aware of the judgment and are waiting to be briefed. He said by the time they receive briefing from Akingbola lawyers in London they will respond appropriately.
Dr. Erastus Akingbola has been involved in the civil litigation since his removal by the Central Bank Governor Sanusi Lamido Sanusi on August 14, 2009 and his subsequent flight to safety in London. The civil case presided over by MR JUSTICE BURTON is between ACCESS BANK PLC and Dr. Erastus Bankole Oladipo Akingbola, Kayman Company Ltd, Verndale Properties Ltd , Jasmine Properties Ltd, Caelum Ltd, Sanami Ltd.
Explaining while the matter came before him in London Justice Burton said “The litigation began in this country, not only because the Fuglers Claims related to (and led to injunctive relief in respect of) properties in the UK, but primarily because the Defendant left Nigeria and was, at the time of service of these proceedings, resident in London. The proceedings began in respect of the Fuglers Claims only on 23 December 2009, when an initial Freezing Order was made by Nicol J, increased by Blair J on 25 January 2010 to include the Tropics Payments Claim and continued until judgment or further order by Christopher Clarke J on 12 February 2010. The Particulars of Claim were amended to add the Unlawful Share Purchase Claim in July 2010”.
“This case came on for trial on 23 April 2012, and the Claimant has been represented, as it was before me in the Summary Judgment application, by Mr Simon Browne-Wilkinson QC and Mr Adam Zellick, instructed by Messrs Berwin Leighton Paisner LLP. The Defendant, although still instructing the same solicitors, Messrs Peters & Peters Solicitors LLP, has been represented for some time and for the purposes of this hearing by Mr Paul Chaisty QC. The hearing lasted for 26 days, concluding on 1 June 2012, subject only to the subsequent delivery of some short additional supplementary submissions/references. It took a somewhat unusual course, because the Defendant and three of his witnesses, Mr Akin Fabunmi, Mr Ayodele Thomas and Mr Bayo Dada, are all defendants in continuing proceedings relating to the same or similar matters as are in issue in these proceedings, and have not been able to leave Nigeria. After considerable discussion and with the agreement of all parties, the course was taken whereby opening submissions by both Counsel and the evidence for the Claimant were given in the Commercial Court in London in the normal way, with a video link so that the Defendant in Nigeria, with his Nigerian lawyers, could listen to and watch the hearing in London, with a contemporaneous transcript in addition. At the close of the Claimant’s case, the Counsel and solicitors for both parties flew to Nigeria, and the evidence of the Defendant and his witnesses was given in Nigeria, where Counsel for both parties examined, cross-examined and re-examined them.
“I sat in London with the benefit of the same video conferencing facilities and contemporaneous transcript. Although the equipment broke down very occasionally, and there was a small time-lag which inevitably meant that on occasions I would find myself speaking over Counsel or the witness, and/or Counsel or the witness would speak over me, there was in the event remarkably little difficulty and all parties have made the necessary accommodations. In particular, I have been invited to, and do, make allowances for the pressures under which the Defendant and his witnesses were occasionally working —-“
In a ruling delivered in London yesterday in the case against Dr Erastus Akingbola, Mr. Justice Burton ordered Mr. Erastus Akingbola to refund the sum of N164Billion being proceeds of “Unlawful Share Purchase Scheme” and fund misappropriation and converted into personal use while at the helm of affairs as Managing Director of former Intercontinental Bank Plc. The Court held that Dr. Akingbola devised and oversaw the implementation of the strategy to buy the Bank’s shares.
The Court found under cross examination that Mr. Erastus Akingbola told obvious lies that he did not know that the Bank was buying its own shares. It was discovered that shortly before the implementation of the strategy to increase the Bank’s share price with the intent of benefiting from the unethical and illegal scheme. Dr. Akingbola had borrowed a whooping sum of N9.3billion to purchase a large quantity of the Bank’s shares for himself.
The Court held that the illegal share purchase scheme substantially contributed to the collapse of the erstwhile Intercontinental Bank Plc. Further investigation by the Court revealed that at a time the Bank was undergoing significant liquidity strain, Dr. Erastus Akingbola misappropriated the sum of N16 billion which was paid to Tropics Companies, a business owned by his family to repay debts owed by the companies personally guaranteed by Dr. Akingbola.
Dr. Akingbola was found to have misappropriated another £8.5million which was paid to his English solicitors to complete the purchase of luxury properties in London in his name. This Judgement is a testament to the findings of the Central Bank of Nigeria on some of the illegalities un-raveled in the Bank following the CBN special audit which led to the removal of some banks chief executives including Dr. Erastus Akingbola in 2008.
