Ex- Mortgages PHB MD To Be Arraigned Over N33 Million Non-Secured Loans

Ex- Mortgages PHB Ltd. MD, Bayo Adewakun will be arraigned October 25, 2022 over granting loans without adequate security.

A Federal High Court sitting in Lagos on Wednesday, while adjourning the matter for the re- arraignment of Adewakun, who was alleged to have recklessly granted loan to B. Walks Consultants Company without adequate security, ordered that hearing notice should be issued.

The defendant was not present in court, when the matter was mentioned, consequently Principal State Counsel from the Department of Prosecution of the Attorney General’s office, Barrister Ndidi Gladys-Ukoha urged the court to issue hearing notice.

The presiding Judge, Abimbola Awogboro acceded to his request.

Adewakun was initially arraigned before Justice Saliu Saidu, who has since retired.

In a four count amended charge filed before the court by Barrister Ndidi Gladys-Ukoha, it was alleged that Bayo Adewakun granted loan in the sum of N33,632,667.17 without adequate security.

The loan was alleged to have been granted to partly finance the completion of a housing development at Victoria Garden City for outright sale without adequate security.

Bayo Adewakun was alleged to have recklessly granted a credit facility in the Sum of N10,000,000.00(Ten Million Naira Only) to B. Waks Consultants Ltd between April 2004 and June 2019 without adequate security, contrary to the accepted practice and was said to have committed an offence contrary to Section 15(1)(a)(i) of the Failed Banks (Recovery of Debts and Financial Malpractices in Bank Act) CAP F2, Laws of the Federation of Nigeria 2004 and Punishable under Section 16(1) (a) of the same Act.

Between 29th April, 2004 and
28th June 2019 as the Managing Director of Mortgages PHB Ltd, he was said to have recklessly granted a credit facility in the Sum of N5, 000,000.00 (Five Million Naira Only) to B. Waks Consultants Ltd without adequate security, contrary to the accepted practice.

Also on or about February 2005, he was said to have approved the grant of a credit facility in the sum of N17, 632,667.91 Seventeen Million Six Hundred and Thirty Two Thousand Six Hundred and Sixty Seven Naira Ninety one kobo) to B. Waks Consultants Ltd to partly finance the completion of a Housing Development at Victoria Garden City (VGC) for outright sale without adequate security, contrary to the accepted practice and committed an offence contrary to Section 20(7) of the Banks and Other Financial Institution Act
(BOFIA) CAP F2 Laws of the Federation of Nigeria 2002 as Amended, and Punishable under Section 18(2) of the same Act.

In addition, between April 29, 2004 and June 28, 2019, Adewakun was alleged to have recklessly granted facility to B. Waks Consultants Ltd, which is more than Twenty Percent of the Shareholders Fund Unimpaired by losses without having mandatory approval from the Bank and committed an offence contrary to Section 20 (2) (a) of the Banks and Other Financial Institution Act (BOFIA) CAP F2 Laws of the Federation of Nigeria 2002, and Punishable under Section 18(2) of the same Act.