’13 Count Charges!’ Court Fixes January 20 for Arraignment of Oba Otudeko, Others Over Alleged N12.3bn Fraud

The Federal High Court in Lagos has scheduled January 20, 2025, for the arraignment of the Chairman of Honeywell Group, Chief Oba Otudeko, and three others on charges brought by the Economic and Financial Crimes Commission (EFCC) concerning alleged fraudulent transactions totaling N12.3 billion.

The defendants, including a former First Bank Managing Director, Stephen Onasanya; a former board member of Honeywell, Soji Akintayo; and a company, Anchorage Leisure Limited, face 13 counts ranging from conspiracy to money laundering and forgery.

According to the EFCC, the alleged offences occurred between 2013 and 2014, involving multiple fraudulent transactions, including obtaining loans under false pretenses and misusing funds in tranches of N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million.

Charges Highlighted
In one of the counts, the EFCC accused the defendants of obtaining N6.2 billion from First Bank Limited, falsely claiming it was a credit facility applied for by Stallion Nigeria Limited. Another charge stated that they conspired to disburse N6.15 billion for purposes unrelated to the initial claim.

The EFCC also alleged that the defendants procured Honeywell Flour Mills Plc to retain N1.5 billion, which they “reasonably ought to have known” was derived from unlawful activities. Similarly, N500 million was reportedly diverted for the company’s use.

Legal Basis for Allegations
The EFCC stated that the offences contravene provisions of the Money Laundering (Prohibition) Act, the Advance Fee Fraud Act, and the Miscellaneous Offences Act. For instance, the agency claimed that the defendants forged documents to deceive First Bank, including a falsified “Letter of Application” and an “Authorization to Issue Investment Certificate.”

Quote from the Charges
In one of its submissions, the EFCC noted,

“The defendants reasonably ought to have known that the funds formed part of the proceeds of unlawful activities, including obtaining by false pretenses and fraudulent false accounting.”

Conflict of Interest
A significant charge against Chief Oba Otudeko highlighted a potential conflict of interest. The EFCC alleged that as Chairman of First Bank Plc, Otudeko had a personal interest in a N6.15 billion loan facility sought by V-Tech Dynamics Links Limited, which he failed to disclose to the bank—a violation of the Banks and Other Financial Institutions Act (BOFIA).

EFCC’s Position
The EFCC is pressing for the enforcement of legal sanctions, citing sections of relevant laws to ensure accountability. “Anything less than full adherence to legal processes will undermine the integrity of the financial system,” an EFCC spokesperson emphasized.

The scheduled arraignment is expected to shed more light on the case as the court deliberates on the gravity of the allegations.