Admin l Wednesday, March 22, 2017
IKOYI, Lagos, Nigeria – A Federal High Court sitting in Ikoyi, Lagos was today told how employees of Consolidated Discount House, including former Managing Directors, Stephen Akinretoye and Mudashiru Shittu stole N43 billion.
Mr. Yinka Awolusi made the revelation while being led in evidence by counsel for the prosecution Mr Daniel Enwelum a counsel from J. B. Daudu (SAN). According to him, Falcon Securities Limited is a client of consolidated discount House Limited and they have been doing business together for decades.
He said sometimes in 2004 , management under the watch of Stephen Olawale Akinreyoye approved a loan without collateral and above the approval limit to the Falcons Securities Limited the company they have interest in.
Among the documents tendered in court are Board approval Limit manual, organogram of consolidated discount House Limited and board minutes of meetings between 2007 and 2011.
Attorney-General of the Federation (AGF) said over N6billion was transferred from CDL to third parties and different companies directly connected to the accused. Those standing trial before Justice Mohammed Idris include CDL’s ex-Managing Directors Stephen Akinretoye and Mudashiru Shittu; and other employees, Larai Claude-Eninn, Hassan Gbenga, Ajibola Jolaosho, Omisore Olawale, Omisope Johnson, Onimole Adebawale and Emmanuel Odedina.
The prosecution, represented by Daniel Enwelum said Shittu and Gbenga (as financial controller), between March 2012 and June 2013, allegedly transferred N1.6 billion from CDL’s Union Bank Plc account: 0033295449, to companies belonging to them.
The prosecution said all returns made to CBN by consolidated discount Limited was based on risk assets of N22 billion, instead of N96bilion, due to the fact that “reports of transactions and account balances were suppressed.”
Akinretoye was alleged to have converted N4.5billion between January 1, 2007 and December 31, 2009 through a company, Goldbank Management Associate Limited where his wife was a director. The prosecution said the facility granted Goldbank was never brought to CDL board’s attention.
According to prosecution, the offence contravenes Section 15 (2) of the Money Laundering Prohibition Act of 2012.
The defendants pleaded not guilty to the 24-count charge.Justice Mohammed dris however Adjourned the case till tomorrow March 23, for cross examination of Awolusi.
The suspects were arrested after CBN’s Legal Adviser/Director of Legal Services petitioned the Economic and Financial Crimes Commission (EFCC) following the discovery of “a high degree of corporate fraud and manipulation of records” by CBN examiners who probed the discount house.
Two other sets of suspects were earlier arraigned on April 18 based on two separate charges. Defendants in the first charge were Akinretoye, Peter Ololo and Falcon Securities Limited. The second charge has Akinretoye, Shittu, Omisore, Captain Eddy Ndoms, Aquatic Transport Limited, Cross Oceans Limited and Ehco Ventures Limited as defendants.
In the first charge, the Federal Government alleged that between January 1 and December 31, 2007, the accused conspired to defraud Consolidated Discount Limited by granting loans to Falcon Securities Limited, a company owned by Ololo, without proper documentation.
The prosecution said they allegedly converted N43.9 billion, funds belonging to Consolidated Discount, in contravention of Section 15 (2) and 15 (3) of the Money Laundering Prohibition Act, 2012.In the second charge, Akinterotoye and others allegedly defrauded the company in the guise of granting loans to the fourth to seventh defendants and converted N520 milion, N303 million and N600 million.
The prosecution said investigations showed that CDL paid for vessels before the dates of the applications for loan made by the fourth to seventh accused. All the accused persons pleaded not guilty.
Justice Idris adjourned till March 23, for cross examination of Awolusi –
