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  • Business - Banking & Finance
  • Updated: August 04, 2020

Fraud Allegations Pit Senator Ayo Akinyelure Against UBA's Tony Elumelu

Fraud Allegations Pit Senator Ayo Akinyelure Against UBA's T

The Chairman of United Bank for Africa (UBA), Tony Elumelu and the Chairman of the Senate Committee on Ethics, Privileges and Public petition, Ayo Akinyelure, are involved in a faceoff over fraud allegations that includes NITEL, the defunct telecommunication company and national carrier.

What Happened: The Allegation

Akinyelure stated that of the N42 billion deposited in UBA by liquidators after NITEL was sold to MTEL, the bank defrauded NITEL of N41 billion. Akinyelure accused UBA of four unauthorised withdrawals, alleging that UBA stole N41 billion out of the N42 billion in the account belonging to the liquidated telecommunications companies.

The lawmaker based his allegations on petitions submitted by J .U Ayogu and Co, on behalf of NITEL/MTEL. It was disclosed that N29 billion, N11 billion, N6.8 million and N22 million were withdrawn at different times by the Nigerian bank between 2006 and 2015 from the accounts - the same period Elumelu led UBA before becoming the Chairman.

[READ ALSO: How Power Tussle Between Isa Pantami, Ahmed Zainab Fuels NIPOST/FIRS Dispute]

The petition submitted against UBA also stated that UBA officials have been hiding under a litigated N685 million it withdrew from the accounts.

Akinyelure Wants UBA GMD To Appear Before Senate

This led to the lawmaker insisting on the presence of UBA Group Managing Director, Kennedy Uzoka, who has been invited to appear before the committee on August 5, 2020. Although, the UBA management had responded to a letter from the Senate that the matter was still in court, Akinyelure insists that the issue wasn't under trial.

Commenting on the petition, he said that, "A human rights lawyer had sent a petition on behalf of the liquidators and creditors of NITEL and MTEL, that if the N685million is a subject of litigation, there is a third account meant for taxation and disasters which has N169million. It was also unilaterally withdrawn by the UBA.

"Seven years after the withdrawal, they’ve not provided the tickets, instead, they were asking the liquidators to get the tickets from the dead liquidators, which is wrong. They had yet to provide the tickets. In another account which had N29 billion, UBA also unilaterally withdrew the money from NITEL accounts without authorisation tickets. Most of the creditors of NITEL have sued the liquidators that they’ve collected money from the UBA without paying them. There is another MTEL account N11 billion withdrawn by the UBA and it has not been accounted for till today.

“The creditors don’t have money to go to court because they are already bankrupt. They sued UBA over the N685million and they won at the Federal High Court, Appeal Court and the Supreme Court. Up till today, they didn’t respect the court judgement by not paying the liquidators.” Premium Times quoted him.

Elumelu Fires Back, Gives Ultimatum

In a response to the allegation made against UBA, Elumelu denied the allegations, stating that the statement sought to defame him. Elumelu spoke through his lawyers, Lawal Rabana and Oluwakemi Balogun, demanding an apology and gave seven days ultimatum to Akinyelure to apologies or face legal actions.

[READ ALSO: How Power Tussle Between Isa Pantami, Ahmed Zainab Fuels NIPOST/FIRS Dispute]

The statement from the lawyers stated that the issue with NITEL was still in court, saying "It is shocking and sacrilegious that a matter pending at the Apex Court could be subjected to debate". It added that the allegations by Akinyelure was an "attempt to use the platform of the respected institution of the Senate of the Federal Republic of Nigeria to accomplish whatever ulterior motives he may have.

“It is important to emphasise that when UBA appeared before the Senate Committee on Ethics, Privileges and Public Petitions, attention was drawn to the fact that the facts and circumstances leading to the disputes on the alleged financial indebtedness was pending before the Supreme Court in SC/CV/112/2020. It was resolved that given the pendency of the matter at the Supreme Court, it was subjudice and all actions on the matter be suspended.

“It is shocking and sacrilegious that a matter pending at the Apex Court could be subjected to debate contrary to the Rules of the Senate and by extension, the principle of law that when a matter is subjudice, it should not be subjected to debate before a decision is reached by the Court. Therefore, the publications ascribed to Senator Ayo Akinyelure is in total disregard of the Rules of Senate and the Rule of Law,” part of the letter read.

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