Former chairman of First Bank of Nigeria (FBN), and Chairman of Honeywell Group, Oba Otudeko, has reportedly left Nigeria, amidst alleged Fraud allegations surrounding him and arraignment scheduled for January 20. According to a report by TheCable, citing Security sources, the businessman departed the country through the Nigeria-Benin border on the 16th January. The report also disclosed that efforts to reach Oba were to no avail as his phone was off. When contacted for comments on his father’s whereabouts and destination, Obafemi Otudeko, his son, did not respond to calls or messages.
Prior to this, Otudeko and three other people were previously charged by the Economic and Financial Crimes Commission (EFCC) before the federal high court in Lagos for allegedly using deception to secure a ₦30 billion loan. The four defendants are accused of planning a fraudulent operation that involved the diversion of ₦12.3 billion from First Bank, during the period between 2013 and 2014. Charges against them include allegations that they gained ₦5.2 billion, ₦6.2 billion, ₦6.15 billion, ₦1.5 billion, and ₦500 million illegally through a number of transactions.
Defendants accused of falsifying documents to obtain ₦12.3 bn.
It was alleged that these funds were acquired under false pretenses of credit facilities for Stallion Nigeria Limited and V-Tech Dynamic Links Limited. Additionally, the defendants were accused by the EFCC of fabricating documents in order to trick First Bank into handling these transactions. In the first charge, the defendants were charged with conspiring to fraudulently steal ₦12.3 billion from First Bank by falsely claiming it was for V-Tech Dynamic Links Limited and Stallion Nigeria Limited, despite knowing the information was fake, the defendants.
Between 2013 and 2014, the defendants allegedly obtained ₦6.2 billion from First Bank under false pretenses that money was for Stallion Nigeria Limited. Additionally, the EFCC claimed that the defendants falsified documents, including a “Letter of Application,” on or around September 3, 2013, in order to trick First Bank into thinking the documents were from V-Tech Dynamic Links Limited. In a similar vein, they were charged with intentionally misleading the bank by fabricating a document entitled “Authorization to Issue Investment Certificate to First Bank.”
Allegations of fraudulent transfers and banking violations.
Additionally, the defendants were also accused of obtaining the transfer of ₦6.2 billion from Stallion Nigeria Limited’s First Bank account in order to cover up fraudulent actions, according to the indictment. As part of the fraudulent scheme, the defendants reportedly enabled the transfer of ₦2.09 billion from the account of Stallion Nigeria Limited to Emmerado Logistics Limited on December 11, 2013. Lastly, it is alleged that Chief Otudeko violated banking standards by neglecting to disclose a personal interest in an ₦6.15 billion Loan facility requested by V-Tech Dynamic Links Limited.
These allegations stem from infractions of the Banks and Other Financial Institutions Act of 2004, the Advance Fee Fraud and Other Fraud Related Offences Act of 2006, the Miscellaneous Offenses Act, and the Money Laundering (Prohibition) Act of 2011. With the trial scheduled for January 20, 2025, if convicted, the four defendants will likely face severe legal repercussions. In a statement issued by Olasumbo Abolaji, general counsel for Honeywell Group, Dr. Oba Otudeko refuted claims pertaining to his involvement with FBN Holdings and First Bank of Nigeria Limited.
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As per the statement, he clarified that he has no operational responsibilities at either organization and has never held an executive position there. Otudeko stressed that although he has not received an official summons or invitation from the appropriate authorities, he is willing to assist if contacted in a professional manner. Otudeko said he has no interest in taking on new executive or board positions, including at FBN Holdings, and is now more concerned with mentoring and societal development. He vowed to protect his name from the current allegations and expressed confidence that the truth will come to light.