Wema Bank Plc has dismissed allegations contained in recent publications by the Nigeria Deposit Insurance Corporation, NDIC, concerning the sale of Banana Island properties allegedly linked to the defunct Gulf Bank Plc, describing the claims as false, misleading and malicious.
In a statement released by the bank, Wema Bank said the controversy stemmed from an inter-bank placement of ₦4.6 billion made to Gulf Bank in 2002.
According to the bank, the exposure was reduced to about ₦1.2 billion by August 2004 before the outstanding debt became delinquent.
The bank stated that efforts to recover depositors’ and shareholders’ funds led to investigations by the Economic and Financial Crimes Commission, EFCC, which allegedly uncovered that the funds had been diverted to acquire properties in Banana Island, Lagos, through Bacad Finance & Investment Company Limited, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Limited.
Wema Bank maintained that the two companies were distinct entities from Gulf Bank Plc and not under NDIC supervision.
According to the statement, the companies voluntarily relinquished their interests in the Banana Island properties to settle Gulf Bank’s indebtedness to Wema Bank following EFCC investigations.
The bank further claimed that the NDIC formally acknowledged Gulf Bank’s indebtedness in letters dated September 26, 2007, and June 10, 2009, addressed respectively to the Federal Land Registry and Wema Bank.
It added that the letters had been frontloaded by NDIC’s counsel, Dada Awosika, in ongoing proceedings before Justice Allagoa of the Federal High Court in Lagos.
Wema Bank also disclosed that after the sale of the properties, NDIC paid the shortfall owed to the bank, arguing that the action demonstrated NDIC’s awareness and participation in the settlement arrangement.
The bank said the NDIC had recently instituted two separate suits against Wema Bank at the Federal High Court, Lagos, in its capacity as liquidator of Gulf Bank Plc, but stressed that the matters were now sub judice.
Wema Bank stated that it would contest the suits and pursue all lawful means to protect its interests.
The bank reaffirmed its commitment to corporate governance, regulatory compliance and ethical banking practices, while accusing unnamed individuals of attempting to benefit improperly from the dispute.
