The Chairman of Honeywell Group, Chief Oba Otudeko, a former Managing Director of First Bank, Olabisi Onasanya and others are discussing “settlement” in an alleged N12.3 billion fraud case under the supervision of the Office of the Attorney General of the Federation.
Otudeko’s counsel, Chief Wole Olanipekun, (SAN), informed Justice Chukwujekwu Aneke of the Federal High Court Lagos on Monday that “parties were exploring a settlement”, in the case filed by the Economic and Financial Crimes Commission (EFCC), as reported by NAN.
Nairametrics previously reported that the EFCC’s suit is against Otudeko, Onasanya, a former board member of Honeywell Flour Mills Plc, Soji Akintayo, and a company allegedly linked to Otudeko, Anchorage Leisure Ltd, in the case marked FHC/L/20C/2025.
EFCC Allegations
The EFCC had accused the defendants, in a 13-count criminal charge, of fraudulently obtaining N12.3 billion from First Bank through various transactions between 2013 and 2014.
According to the charges previously reported by Nairametrics, the defendants allegedly secured N6.2 billion in credit facilities from First Bank Limited under the pretext of loans applied for and disbursed to Stallion Nigeria Limited.
The EFCC argued that the representations made by the defendants were false and contravened Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006, punishable under Section 1(3) of the same Act.
Some of the charges state:
“That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO, AND ANCHORAGE LEISURE LIMITED, on or about the 26th day of November 2013 in Lagos, within the jurisdiction of this Honourable Court, conspired amongst yourselves to use the total sum of N6,150,000,000 (Six Billion, One Hundred and Fifty Million Naira Only), which you reasonably ought to have known forms part of proceeds of your unlawful activities, to wit: Obtaining by False Pretence. You thereby committed an offence contrary to Sections 18(a) and 15(2)(C) of the Money Laundering (Prohibition) Act, 2011 (as amended), punishable under Section 15(3) of the same Act.”
Another charge alleges:
“That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO, AND ANCHORAGE LEISURE LIMITED, on or about the 11th day of December 2013 in Lagos, within the jurisdiction of this Honourable Court, procured Honeywell Flour Mills Plc to retain the sum of N1,500,000,000 (One Billion, Five Hundred Million Naira Only), which sum you reasonably ought to have known forms part of proceeds of your unlawful activities, to wit: Obtaining by False Pretence. You thereby committed an offence contrary to Section 18(c) and 15(2)(d) of the Money Laundering (Prohibition) Act, 2011 (as amended), punishable under Section 15(3) of the same Act.”
Additionally, the EFCC alleged that Otudeko, while serving as Chairman of First Bank, had a personal interest in a N6.15bn loan facility sought by V-Tech Dynamics Links Limited.
The Commission alleges the interest was reportedly undeclared to the bank, constituting a violation of Section 18(1) of the Banks and Other Financial Institutions Act 2004, punishable under Section 18(2) of the same Act.
On February 13, 2025, Otudeko failed to appear in court for arraignment.
The defence counsel argued that the court should first determine their preliminary objections before arraignment and the court fixed the date for ruling.
What transpired in court
- Delivering a ruling on Monday, Justice Aneke disagreed with the defence team, holding that “it was a settled legal principle that a defendant’s plea must be taken before any preliminary objection can be heard.”
- After the ruling, Olanipekun informed “the court that settlement discussions were ongoing.”
- He said, “A meeting was held on March 12 involving all parties, including the prosecution, under the Attorney General’s supervision.”
- He seized the moment to call for an adjournment for a report on the settlement.
Other defence counsel, including Messrs Kehinde Ogunwumiju (SAN), Olumide Fusika, (SAN), and Charles Adeosun-Phillips (SAN), aligned with the submission of Olanipekun.
- They urged the court to grant an adjournment solely for a settlement report, so as not to prejudice the settlement discussions by the parties.
- The prosecution’s counsel, Mrs Bilikisu Buhari, argued that the next adjourned date should be for either a settlement report or arraignment, in the event that settlement fails.
- After hearing from the parties, the court granted the defence’s request and adjourned the case until May 8 for a report on the settlement.
What You Should Know
- The EFCC is one of Nigeria’s foremost anti-graft agencies.
- This case remains an allegation, and the defendants are presumed innocent until proven guilty.
- The court will determine the merits of the charges in due course.
