The Economic and Financial Crimes Commission (EFCC) is set to arraign prominent Nigerian businessman and Honeywell Group Chairman, Chief Oba Otudeko, alongside former First Bank Managing Director, Stephen Olabisi Onasanya, over allegations of fraud amounting to ₦12.3 billion. The arraignment, scheduled for Monday, January 20, 2025, will take place at the Federal High Court in Lagos before Justice Chukwujekwu Aneke.
The Allegations
The EFCC claims that Otudeko, Onasanya, and two others, including former Honeywell board member Soji Akintayo and Anchorage Leisure Limited, a firm linked to Otudeko, conspired to defraud First Bank of Nigeria through fraudulent credit facilities and other financial manipulations. According to court filings, the alleged fraud occurred in tranches, with sums of ₦5.2 billion, ₦6.2 billion, ₦6.15 billion, ₦1.5 billion, and ₦500 million disbursed between 2013 and 2014.
A source within the EFCC revealed, “The defendants orchestrated a scheme that involved false representations and forged documents, causing significant financial losses to the bank.”
The Charges
The 13-count charge, filed by EFCC counsel Bilikisu Buhari, outlines a range of offences, including obtaining money by false pretenses, conspiracy to commit fraud, money laundering, and forgery. The EFCC alleges that the defendants conspired to procure fraudulent credit facilities for two entities, V-Tech Dynamic Links Limited and Stallion Nigeria Limited, while disguising the proceeds as legitimate business transactions.
One of the charges reads: “You, Chief Oba Otudeko, and others, conspired to obtain ₦12.3 billion from First Bank Limited under the false pretense that the sum represented credit facilities applied for by V-Tech Dynamic Links Limited and Stallion Nigeria Limited. This representation was false and known to you as such.”
Details of the Fraud
The EFCC further alleges that part of the ₦6.15 billion obtained was funneled into personal and corporate accounts linked to Honeywell Flour Mills Plc. In another instance, ₦1.5 billion and ₦500 million were reportedly converted to the use of Honeywell Flour Mills and Anchorage Leisure Limited, respectively, without proper documentation.
The EFCC maintains that these actions contravene multiple provisions of Nigerian laws, including the Advance Fee Fraud and Other Fraud Related Offenses Act 2006, the Money Laundering (Prohibition) Act 2011 (as amended), and the Miscellaneous Offenses Act.
Forgery Allegations
In addition to financial misappropriations, the defendants are accused of forging documents, including a letter of application purportedly issued by V-Tech Dynamic Links Limited and an authorization for investment certificates intended to deceive First Bank. These forgeries, the EFCC claims, were crucial in executing the fraudulent scheme.
“Forgery is a significant component of this case. The defendants knowingly created and used false documents to manipulate financial transactions,” the EFCC stated in its charges.
Corporate Governance Questions
Otudeko’s dual roles as Chairman of First Bank and Honeywell Group at the time have raised questions about corporate governance and conflict of interest. One of the charges alleges that Otudeko had a personal interest in a ₦6.15 billion loan facility granted to V-Tech Dynamic Links Limited but failed to declare this interest to the bank’s board.
The offences carry severe penalties under Nigerian law. For instance, Section 15(3) of the Money Laundering Act prescribes a jail term of up to 14 years for money laundering offences. Similarly, forgery and obtaining money by false pretenses attract hefty fines and long-term imprisonment.
Background on the Defendants
Chief Oba Otudeko is a well-known figure in Nigeria’s business landscape, with interests spanning telecommunications, real estate, and manufacturing. He is the founder of the Honeywell Group, a conglomerate with significant influence in Nigeria’s economy.
Stephen Olabisi Onasanya, on the other hand, is a respected banker credited with several reforms during his tenure at First Bank. However, his alleged involvement in the fraud has raised concerns about ethical standards in Nigeria’s banking industry.
