Trial of a former Managing Director of Intercontinental Bank Plc, Erastus Akingbola, resumed on Monday before a Federal High Court Lagos, with cross-examination of the first prosecution witness, Mr Paul Akali.
Akali is an official of Nigerian Deposits Insurance Corporation (NDIC).
Cross-examined by defence counsel, Prof. Taiwo Osipitan (SAN), Alkali told the court that his team did not recommend a takeover of intercontinental bank.
Akingbola is being prosecuted by the Economic and Financial Crimes Commission (EFCC) on allegations of granting unsecure credit facilities worth billions of naira to different companies.
According to the EFCC, the offences contravene the provisions of Section 14 (1) of the Money Laundering Act of 2004.
During his evidence-in-chief earlier, Akali informed the court of the various roles played by his team, which led to the removal of Akingbola as the bank’s managing director.
He was led in evidence by the prosecutor, Mr Rotimi Jacobs (SAN).
When trial resumed on Monday, the witness told the court that though the team conducted various examinations on the bank, it never recommended takeover of the bank.
When asked if he knew that the takeover was less than one month after an ‘exit meeting’, he answered in the affirmative, adding that though there were financial discrepancies in the bank, none was directly linked to the defendant.
He told the court that some of the discrepancies in the bank were noticed in the bank’s monthly returns.
He, however, added that the bank’s management disagreed with the team on commercial papers which, he said, were for short-term loans of a maximum of 270 days.
The witness told the court that he could not remember if any of the commercial papers was signed by the defendant.
Akali also told the court that there were loans given to the bank’s directors to buy shares, but when asked if the defendant was among the directors who collected or signed for the loan, he said, ”No.”
When asked by defence counsel if any of the directors who benefited from the loan and bonuses was standing trial alongside the defendant, he said, “No.”
When asked if he was aware if any of the directors who benefited from the unsecure loan of N8 billion was charged and arraigned before any court, he said he was not aware.
The counsel then showed the witness a charge in which the names of the directors were listed as defendants as well as an enrolled order striking out the charge against the directors in 2014.
The witness, consequently, confirmed that Akingbola’s name was not in the charge and that he had no cause to testify against the named directors before any court.
When asked if he knew any reason why the charge was withdrawn against the directors, he said, “No”, adding that Intercontinental bank was not on trial.
The witness also confirmed to the court that several banks were having issues with their capital market transaction and were allowed to sort out the issues until Dec. 31, 2009.
When asked the number of banks that were taken over like Intercontinental on account of shares-related loans, he said, ‘I don’t know of any bank that was taken over on share related-issue.”
When asked if bank directors have rights to bonuses, he told the court that it was their right but he noticed that the defendant did not collect loan or bonuses.
The trial will continue on March 20. (NAN)
