A witness, in the on-going trial of the
former Managing Director of Bank PHB (now
Keystone Bank),Francis Atuche, Professor Pat
Utomi, yesterday, told a Lagos High Court sitting in
Ikeja that the loans granted by the former
Managing Director of the Bank were ratified by the bank’s board of directors. Atuche, his wife and a former Chief Financial
Officer of the bank, Ugo Anyanwu, are being
prosecuted by the Economic and Financial Crimes
Commission, EFCC, for allegedly stealing N25.7
billion belonging to Bank PHB. While reading from the minutes of the Board of
Directors’ meeting of Bank PHB on July 9,2008,
Utomi, a former chairman of Bank PHB said the
loans were ratified during
the meeting by the members. He said the credit facilities were granted to Extra
Oil Ltd., in the tune of N3.9 billion; Tradjeck Ltd.,
N3.5 billion, Future View Securities Ltd., N3.5
billion; Petosan Oil and Gas Ltd, N4 billion and
Falcon Securities, N8 billion. Utomi, who was led in evidence by Atuche’s
counsel, Chief Anthony Idigbe, said the ratification
of the loans did not offend the code of corporate
governance for banks in Nigeria. He said:”In the business of banking which
involves risk, it is the duty of the board to take
decisions on the optimal risk that the bank can be
exposed to. “We always ensured that illegality was not
pursued, but we also recognised that
management needed to act and take risk on
behalf of the bank,” he said While being cross-examined by the EFCC counsel,
Mr. Kemi Pinheiro, SAN, Utomi maintained the fact
that ratification of loans was a routine thing in all
banks. Earlier, the minutes of Bank PHB Board meeting,
dated July 9,2008, was tendered before the court
by an employee of Keystone Bank, Mr. Seyi
Ogundipe. The bank was subpoenaed by the court to present
the documents and other vital documents needed
for the trial, which were in its custody. Further hearing in the matter will continue today.
former Managing Director of Bank PHB (now
Keystone Bank),Francis Atuche, Professor Pat
Utomi, yesterday, told a Lagos High Court sitting in
Ikeja that the loans granted by the former
Managing Director of the Bank were ratified by the bank’s board of directors. Atuche, his wife and a former Chief Financial
Officer of the bank, Ugo Anyanwu, are being
prosecuted by the Economic and Financial Crimes
Commission, EFCC, for allegedly stealing N25.7
billion belonging to Bank PHB. While reading from the minutes of the Board of
Directors’ meeting of Bank PHB on July 9,2008,
Utomi, a former chairman of Bank PHB said the
loans were ratified during
the meeting by the members. He said the credit facilities were granted to Extra
Oil Ltd., in the tune of N3.9 billion; Tradjeck Ltd.,
N3.5 billion, Future View Securities Ltd., N3.5
billion; Petosan Oil and Gas Ltd, N4 billion and
Falcon Securities, N8 billion. Utomi, who was led in evidence by Atuche’s
counsel, Chief Anthony Idigbe, said the ratification
of the loans did not offend the code of corporate
governance for banks in Nigeria. He said:”In the business of banking which
involves risk, it is the duty of the board to take
decisions on the optimal risk that the bank can be
exposed to. “We always ensured that illegality was not
pursued, but we also recognised that
management needed to act and take risk on
behalf of the bank,” he said While being cross-examined by the EFCC counsel,
Mr. Kemi Pinheiro, SAN, Utomi maintained the fact
that ratification of loans was a routine thing in all
banks. Earlier, the minutes of Bank PHB Board meeting,
dated July 9,2008, was tendered before the court
by an employee of Keystone Bank, Mr. Seyi
Ogundipe. The bank was subpoenaed by the court to present
the documents and other vital documents needed
for the trial, which were in its custody. Further hearing in the matter will continue today.
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