The Federal High Court in Lagos has scheduled Monday, January 20, 2025, for the arraignment of Chief Oba Otudeko, Chairman of Honeywell Group, and Stephen Olabisi Onasanya, former Managing Director of First Bank. The Economic and Financial Crimes Commission (EFCC) accuses them of embezzling N12.3 billion from First Bank. Also facing charges are a former Honeywell board member, Soji Akintayo, and Anchorage Leisure Limited, a company linked to Otudeko.
Alleged Fraud Details
According to the EFCC, the alleged fraud occurred in multiple tranches, including sums of N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million between 2013 and 2014 in Lagos. The defendants are also accused of forging documents to deceive the bank.
The 13-count charge was filed by EFCC counsel, Bilikisu Buhari, on January 16, 2025. The defendants will appear before Justice Chukwujekwu Aneke, with the case registered as FHC/L/20C/2025.
Breakdown of Charges
The first count accuses the defendants of conspiring to fraudulently obtain N12.3 billion under the false pretense of credit facilities applied for by V-Tech Dynamic Links Limited and Stallion Nigeria Limited.
In subsequent counts, the EFCC alleges that:
N5.2 billion was fraudulently obtained on November 26, 2013, under the guise of credit facilities.
Between 2013 and 2014, N6.2 billion was secured under similar pretenses.
N6.15 billion was unlawfully spent as part of the proceeds of fraud.
These acts allegedly violate Section 8(a) of the Advance Fee Fraud and Other Related Offences Act, 2006, and are punishable under Section 1(3) of the same Act.
Money Laundering Allegations
Counts 5 and 6 accuse the defendants of retaining N1.5 billion and converting N500 million for Honeywell Flour Mills Plc, funds allegedly derived from unlawful activities. These actions contravene Sections 18(c) and 15(2)(d) of the Money Laundering (Prohibition) Act, 2011 (as amended).
Forgery and Conspiracy
Other charges include conspiracy to forge documents, such as letters of application and authorization for investment certificates, intended to mislead First Bank. These acts allegedly breach Sections 3(6) and 1(2)(c) of the Miscellaneous Offences Act, Cap M17 Laws of the Federation of Nigeria 2004.
Additional Accusations
The EFCC further accuses Otudeko and Onasanya of orchestrating illegal transfers of N6.2 billion and N2.09 billion to Stallion Nigeria Limited and Emmerado Logistics Limited, respectively. These transfers allegedly violate the Money Laundering (Prohibition) Act, 2011.
In the final count, Otudeko is accused of failing to disclose a personal interest in a N6.15 billion loan sought by V-Tech Dynamic Links Limited while serving as Chairman of First Bank. This act contravenes Section 18(1) of the Banks and Other Financial Institutions Act, 2004.
The trial is expected to shed light on the intricate financial transactions involved in the alleged fraud.
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