The Economic and Financial Crimes Commission has reopened before the Federal High Court in Lagos, the 10-year fraud trial of a former Managing Director of the defunct Intercontinental Bank Plc, Dr. Erastus Akingbola.
The trial, in the charge marked FHC/L/CS/443c/09, reopened on Monday before Justice Mojisola Olatoregun.
In the 26 counts filed before the court, the prosecution alleged that while he was MD and Chief Executive Officer of Intercontinental Bank, Akingbola, between November 2007 and July 2008, was involved in reckless approval of credit facilities, without adequate security for a number of firms.
The prosecution alleged that for instance, Akingbola recklessly approved a credit facility of N8bn each to Soo-Kok Holding Limited; Tofa General Enterprises; Cinca Nigeria Limited; Harmony Trust and Investment Limited; Stanzus Investment Limited.
The EFCC said the illegal transactions were carried out between May 2008 and May 2009 in contravention of “accepted practice or Intercontinental Bank Plc’s regulations.”
It said Akingbola violated Section 15(1)(a)(i) of the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, Cap F2, Laws of the Federation of Nigeria, 2004 and was liable to be punished under Section 16(1)(a) of the same Act.
In another instance, the prosecution alleged that under Akingbola’s watch as MD/CEO, Intercontinental Bank Plc had N87.6bn non-performing credit burden…