(Reuters) - Nigeria's Access Bank has won an order for repayment of more than $1 billion (639.75 million pounds) in a fraud case in London's High Court against a former executive of a bank it took over, according to a court document seen by Reuters on Wednesday.
The High Court of Justice, Queens Bench Division in London, United Kingdom had on Tuesday delivered judgment in a suit instituted by Access Bank against him and five others. Erastus Akingbola, a former managing director of Intercontinental Bank that was taken over by Access last year, was ordered to pay the sum after being found guilty of illegal share dealing. Intercontinental was bailed out by the Nigerian central bank in 2009.
Access Bank charged Erastus Akingbola, the former managing director of rescued lender Intercontinental Bank which it bought last year. The judgement was handed down by Justice Burton on Tuesday. The judge ruled Mr Akingbola's dealings had contributed to the bank's collapse.
Access shares were trading flat on Wednesday.
Bank rescue
The case was heard in London because the defendant was living in the city at the time proceedings were issued.
Access Bank alleged that Mr Akingbola had been involved, either directly or indirectly, in buying large chunks of Intercontinental stock. When the Nigerian stock market collapsed following the global financial crisis, the shares plummeted in value and the bank had to be rescued.
Access also claimed the defendant had overseen payments from the bank to Tropics Group, a company in which he held a stake. Intercontinental, then one of Nigeria's largest banks, was one of nine lenders bailed out by the central bank in 2009, when Akingbola was removed from his post.
The judge ruled that Akingbola and his counterparts owed Access 145 billion naira due to illegal dealing in Intercontinental Bank shares and 16 billion naira in payments made by the bank to Tropics Group, companies in which Akingbola had an interest, Burton said.
Akingbola denied any wrongdoing.
In his ruling made on Tuesday, Mr Justice Burton said: "The claimant's case in proved".
"As the Tropics Payments Claim is concerned, and as for his strategy for the company to buy its own shares ... quite apart from being contrary to Nigerian law, it was simply wrong-headed, and was plainly a substantial contributing factor to the collapse of the bank," Burton added.
Akingobola has already submitted $9 million to the court from property he bought with the bank's money but later sold, the judgment said.
Meanwhile Nigerian newspapers are reporting that the former managing director of the defunct Intercontinental Bank Plc, Dr. Erastus Akingbola has insisted that he is innocent of the charge against him contrary to a United Kingdom court judgment in favor of his former bank’s new owner, Access Bank Plc. In a statement issued by his counsel, Charles Nwagwu, the sacked bank chief said his lawyers would soon appeal against the London court’s judgment.
He, however, expressed confidence that he would eventually be vindicated. “We are disappointed with the judgment which is at variance with all evidence at the hearing. Our lawyers have therefore been instructed to pursue an appeal of the judgment as well as consider all further legal options. “Dr. Akingbola restated his innocence and was determined to clear his name. He remained confident that the judicial system would eventually vindicate him,” the statement said.
Akingbola also stated that the court did not order him to pay back any money contrary to reports. “May we also clarify that the judgment did not order Dr. Akingbola to pay any sum of money as at today contrary to claims in the media reports.
“This civil case in London is the fourth variant of the various cases in the Nigerian courts emanating from the forceful takeover and subsequent sharing of the assets of Intercontinental Bank and the ruthless suppression of any opposition,” it alleged.
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