Beaming The Searchlight; EFCC Wades Into First Bank Crisis, Invites Oba Otudeko, Others

From information gathered by Papermacheonline, the Economic Financial Crimes Commission have started investigating the management crisis rocking the First Bank of Nigeria.

A source hinted that the commission over the weekend invited businessman, Obafoluke Otudeko as well as other prominent figures over some dubious loans taken from the bank.

Oba Otudeko who owns the Honeywell Flour Mills is being asked to pay back a loan to the bank within a specified time limit.

Its alleged that First Bank gave special treatment to Honeywell Flour Mills in restructuring its loan facility.

Oba Otudeko was formerly a chairman of First Bank Plc until 2010.

It was alleged that Otudeko once collected a loan without guarantee to the tune of N11B, something considered as inappropriate.

The businessman was alleged to have used the loan to build the Reddington Blue Hotel in Lagos.

He was said to have not presented collaterals when he obtained the loan.

It was also claimed that in 2013, a N5.5B loan facility was given to Honeywell Flour Mills by Ecobank. The loan is presently a subject of litigation still ongoing at the Supreme Court.

First Bank on Wednesday announced the removal of Sola Adeduntan as the Managing Director replacing him with Gbenga Shobo and appointed ned Directors.

Interestingly, the CBN governor, Godwin Emefiele sacked the new appointees on the grounds that the apex bank was not informed before the appointment of the new management.

The CBN also retained Sola Adeduntan as the Managing Director.

 

Additional Report : Streetjournal