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  • Business - Banking & Finance
  • Updated: 1 month ago

Union Bank Reacts To Alleged N1.9bn Fraud Allegation

The management of Union Bank of Nigeria Plc, one of the old generation deposit money banks (DMBs) in Nigeria spoken on the alleged N1.9 billion fraud linked to some of its key staff members.

Some online media had earlier reported that three former management officers of the bank alongside former CEO, Emeka Emuwa will be facing corruption charges and possible arraignment by the Economic and Financial Crimes Commission (EFCC) over alleged involvement in the N1.9 billion scandal.

The EFCC had reportedly filed five charges of conspiracy, stealing and dishonest conversion of funds against Union Bank, the former CEO, Emeka Emuwa, and others identified as Mrs. Oyinkan Adewale, its former director, and chief financial officer, Mr. Adeoye Oluwagbenga, its former finance controller before a Lagos State high court.

According to the charge with suit No: ID/14355C/2021, dated February 17, 2021, Emeka Emuwa, Adeoye Oluwagbenga, Oyinkan Adewale and Union Bank Plc, with intent to conceal legal origins, transferred to themselves “the sum of N1, 927, 836, 804 billion belonging to Aso Savings and Loans PLC.”

The charge was brought pursuant to a petition to the EFCC by a law firm, AEC Legal, dated 5th April 2018 and titled: “Criminal Complaint Of Fraudulent Misrepresentation And Diversion Of N1,927,836,8049 (One Billion, Nine Hundred And Twenty Seven Million, Eight Hundred And Thirty-Six Thousand, Eight Hundred And Four Naira) And Criminal Conspiracy To Defraud By Mr. Emeka Emuwa And Other Principal Officers Of Union Bank Of Nigeria Plc”.

As contained in the petition, “We make this criminal complaint of misrepresentation and diversion against Mr Emeka Emuwa, the managing director of Union Bank of Nigeria Plc and other principal officers of Union Bank Nigeria Plc with address at Stallion House 36, Marina Lagos.

“Mr Emeka Emuwa and other principals of Union Bank of Nigeria Plc sold Union Homes Savings & Loans Plc (UHSL) to our client (Aso Savings and Loans PLC) for the total sum of N5 billion. At the time of negotiations of the sale and purchase agreement of the UHSL, our client was informed that UHSL’s shares in Union Assurance company PLC, valued at N1,134,615, 384 formed part of its asset of UHSL to be acquired by our client.

“It therefore came as a shock to our client to discover, upon the conclusion of sales, that Emeka Emuwa and other principal officers of the bank had sold off UHSL’s shares in Union Assurance Plc to Greenoaks Global Holdings Limited and realized that the sum of N1,927,836,804 from the sale.

“More shocking is that there are no records whatsoever showing that the proceeds of the sale of the Union Assurance Plc was paid into UHSL’s account or financial records.

“Our client has confronted Emeka Emuwa with this allegation but he has failed to proffer any explanation nor made any attempt to account for the proceeds of the sale.

“It is obvious that Mr Emuwa and his cohorts fraudulently diverted our client’s money in the tune of N1,927,836,804 and have no intentions of returning same”.

Union Bank Reacts To Alleged N1.9bn Fraud Allegation

Speaking to AllNews Nigeria, a top staff of the bank revealed that the report is fake and the curator is aware. The staff member further wondered how fraud could be committed when knowing fully well that Union Homes Savings & Loans Plc was sold to Aso Savings and Loans PLC. 

The source also affirmed that the Bank has not been enmeshed in any form of fraud since its existence.

Furthermore, Mrs. Ogochukwu Ekezie-Ekaidem, chief brand and marketing officer of Union Bank to the lender’s angle. She said: “To date, neither the bank nor any of the said officers (past or present) has been served any court processes relating to any such action.

“Further, the statements and assertions contained in the outline shared with us are factually inaccurate and patently false.

“Please, be reminded that proceeding to publish a report based on factual inaccuracies will be regarded as wilful libel against the parties named in the outline. We will therefore be constrained to seek legal redress in defence of the truth,” the statement read.

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