The Special Fraud Unit, SFU, Force CID, Milverton Road, Ikoyi, Lagos, Nigeria, has declared the Managing Director of Spring Bank Plc, Mrs. Ayodele Olushola wanted over an alleged N5.208 billion fraud in the bank.

P.M.NEWS authoritatively gathered that the MD was declared wanted following her failure to report at the SFU after an arraignment notice had been served on her twice.

The arraignment notice to take her and others to court over the alleged N5.2 billion fraud in the bank was first served on 12 August, 2010, while the second one was served on her and others on 31 August, 2010.

A source at the SFU told P.M.NEWS that their investigation revealed that on getting wind of her arraignment before a law court over the alleged fraud, Mrs. Olushola fled to the United States of America.

“Our visits to her office and residence revealed that the woman has travelled out. We learnt she travelled on the night of the day we served her the notice of arraignment,” the source disclosed.

The notice of arraignment served Mrs. Olushola read in part: “This is to notify you that criminal charges have been filed against you, Mrs. Ayodele Olushola by the Federal Ministry of Justice, and this unit is to arraign you in court to answer to the charges against you…”

The Spring Bank MD, who was named as an accessory to the N5.2 billion fraud in the bank which involved the National Sports Lottery Plc and Strand Capital Partners Ltd, was charged to court along with Michael Ajamah, Lanre Odunlami, Awele Nwaboshi, Gladys Okebelama and Olubukola Moradeyo.


It was further learnt the five-count charge slammed on the accused in case No. FHC/L/284/10 charged to the Federal High Court, Ikoyi, Lagos is being prosecuted by Chief Wole Olanipekun (SAN), Dele Adesina & Co. and Legal Resources Alliance.

The charges include conspiracy to steal, obtaining by false pretence, forgery and accessory after fact of stealing.

The Spring Bank MD and her company were particularly charged with accessory after fact of stealing of the sum of N5.2 billion being the property of Strand Capital Partners Ltd, thereby committing an offence contrary to section 519 and punishable under the Criminal Code, laws of the Federation of Nigeria, 2004.

The case, which was first mentioned on 5 August, 2010, but was adjourned till 7 October, 2010 as neither the suspects nor their lawyers were in court.

The court has, however, mandated the Special Fraud Unit, SFU, to produce the suspects for arraignment on the next adjourned date, 7 October, 2010.

Mrs. Olushola was one of the seven managing directors appointed by the Central Bank of Nigeria, CBN, on 2 October, 2009 to replace the sacked ones.

She replaced Charles Ojo in Spring Bank.

Very Beautiful and Shameless Lady.

Before you judge

Spring Bank refutes fraud allegations 
By Ademola Alawiye   
Tuesday, 14 Sep 2010 

The management of Spring Bank Plc has debunked fraud allegations levelled against the current top management of the bank.

A national newspaper (not The PUNCH) had reported the alleged involvement of the top management of the bank in fraud and economic crimes estimated at N5.2bn.

The report had said that the Federal Attorney General and the Justice Minister, Mr. Bello Adoke, had filed five charges against the Group Managing Director and Chief Executive Officer, Spring Bank, Mrs. Sola Ayodele, and other top managers of the bank who were reported to have obtained the money from Strand Capital Partners Limited.

But the bank, in a statement on Monday, refuted the fraud allegations, noting that there was no money in the SCPL account.

According to the statement, ”What is at issue is a long drawn criminal manipulation of facts by SPCL and Secure Electronic Transactions Plc, to fraudulently obtain the sum of N5.2bn from the vaults of the bank.”

It explained, ”The Suleyman Ndanusa led interim management of the bank between 2007 and 2008 purportedly approved N5.2bn for SCPL, who were underwriters to the failed NSL Initial Public Offer of 2008.

”However, the transaction was reversed by the Charles Ojo led management under the Bank PHB/Spring Bank acquisition exercise, on the directive of the Central Bank of Nigeria, which also ordered the termination of the transaction.”

The statement also said, ”The CBN‘s directive was premised on the fact that the transaction did not follow due process and clearly showed an abuse of corporate governance. A typical example of the illegality perpetrated in the purported approval of the facility is the fact that a former General Manager of Spring Bank, Dr. Tunji Sobodu, who facilitated the transaction was at the time, also a director of SCPL. The facilitation was also done in conjunction with the former treasurer of the bank, Mr. Dapo Adeyemi-Bajo, who now works with NSL. The purported approval of the N5.2bn facility neither passed through the Management Credit Committee, the Board Credit Committee nor the Interim Management Board at the time.”

The bank also faulted the arraignment of the present GMD and other workers of the bank, which it claimed were not party to the transaction, adding that it had already secured an order of court, restraining the police from carrying out the threats of arrest.

Sources at the bank also said that some managers had alleged assassination threats on their lives after attempts to make them co-operate with NSL/SCPL in the release of N5.2bn failed.

Furthermore;

CBN clears Spring Bank GMD, others of N5.2b fraud allegation - 16/09/2010

THE Central Bank of Nigeria (CBN) Wednesday exonerated the management of Spring Bank Plc from any allegations of fraud as recently reported in some daily and evening newspapers.

The reports said the Group Managing Director/Chief Executive Officer of Spring Bank Plc Mrs. Sola Ayodele, and key officers of the bank had been charged with defrauding Strand Capital Partners Ltd of N5.2 billion and that the GMD/CEO of the bank had been declared wanted.

But, the CBN, in a letter dated September 14, 2010 to the Principal Solicitor, Legal Resources Alliances, legal advisers to Strand Capital Partners, stated that Strand Capital’s claims to N5.2 billion from Spring Bank cannot be established.

The statement, signed by the Director of Banking Supervision, states:

"At the meeting of the CBN examiners with the petitioner on 19th January, 2009 and the subsequent meeting held with the directors of Banking Supervision, CBN, on 23rd February, 2010, your claim that Spring Bank’s offer letter of 7th July, 2008, extending a N5.208 billion underwriting line facility to Strand Capital Partners Limited was an irrevocable underwriting agreement in accordance with the enabling statutes between Spring Bank Plc and NSL could not be established because you failed to provide a copy of an executed underwriting agreement between the bank and NSL. Your assertion that the offer of an underwriting facility could be construed and treated in a similar manner as an underwriting commitment could not also be substantiated while your promise to provide evidence as requested by the CBN has not been complied with up till time of writing this letter."

The statement entitled Spring Bank Plc Underwriting Commitment/Agreement in Respect of National Sports Lottery Plc Public Offer, which was actually a response to a petition by Legal Resources Alliance on behalf of Strand Capital Partners Ltd, added:

"Strand Capital Partners Limited on 3rd July, 2008, wrote to Spring Bank Plc requesting for an overdraft and/underwriting line of up to N5 billion, to part finance its operations and enable it act as underwriters to public and private security/stock offerings. The tenor was to be determined on a case-by-case basis, subject to a minimum of 90 days, with rollover options while the security pledged were shares/stocks purchased with the facility.

"The Management of Spring Bank Plc in a letter dated 7th July, 2008, offered an underwriting line facility of N5.208 billion to Strand Capital Partners Ltd to partially underwrite the IPO of NSL Plc subject to some conditions precedent to draw down. The facility was for 90 days and was to expire on 12th October, 2008. The source of repayment was to be proceeds of the offer of NSL or a lien on 336 million ordinary shares of NSL, which was yet to come into existence.

"Based on Spring Bank’s offer letter, the Board of Directors of Strand Capital Partners Ltd passed a resolution at its meetings of 7th July, 2008 authorizing the company to accept the credit facility/banking accommodation of N5.208 billion from Springbank Plc.

"There was an internally transferred credit of N5.208 billion into NSL offer proceeds account No.001203910002101 of Springb0ank. The statement of account referred to above which you claimed was your client’s money was in fact an "Account Payable/suspense" account that was created by Spring Bank. The account was an internal account of the bank that was non operating and maintained for record keeping purpose. It was not meant for disbursement as one of the Management’s directives was that there should be no outflow of funds from the account. The two credit entries that made up the N5.208 billion were reversed by the bank on 19th January, 2009. We noted that the account was opened on 11th September, 2008 after the offer had closed and as such could not have been credited to the customer on the day the offer opened, which was 14th July, 2008. Also NSL Plc did not direct the bank to open the account, and thus it cannot lay claim to it.

"NSL Plc suit no. M/610/2008 filed in the High Court of Lagos State on the 5th November, 2008 making claims of N5.208 billion underwriting commitment amongst other prayers. However, it was noted that the firm of Oghogho Ayauru & Co, Lawyers to NSL, filed a notice of discontinuance at the High Court of Lagos State on 19th February, 2009.

"On 24th April, 2009 the firm of Silas Ukaro & Co filed a statement of claim in respect of the issue under consideration against the bank on behalf of Strand Capital Partners Ltd in the High Court of Lagos State. The case was yet to be determined.

"At the meeting of the CBN examiners with the petitioner on 19th January, 2009 and the subsequent meeting held with the Director of Banking Supervision, CBN, on 23rd February,2010, your claim that Spring Bank’s offer letter of 7th July, 2008, extending a N5.208 billion underwriting line facility to Strand Capital Partners Limited was an irrevocable underwriting agreement in accordance with the enabling statutes between Spring Bank Plc and NSL could not be established because you failed to provide a copy of an executed underwriting agreement between the bank and NSL. Your assertion that the offer of an underwriting facility could be construed and treated in a similar manner as an underwriting commitment could not also be substantiated while your promise to provide evidence as requested by the CBN has not been complied with up till time of writing this letter

"The bank was not registered by the Securities and Exchange Commission (SEC) as an underwriter and could, therefore, not underwrite an issue of shares

Some of the conditions precedent to drawdown, which included the following, were not met:

Opening of an account by Strand Capital Partners Limited with Springbank for the domiciliation of all proceeds of the public offer

Counter indemnity of Strand Capital Partners Limited

Approximately N110 million, which was realised out of the public offer of N12 billion was used by NSL in the company’s business.

After its detailed findings, the apex bank counselled that since the case is before a competent court, NSL should allow the court process to run its course.

Springbank said: "From the foregoing, it becomes obvious that the sponsored and carefully orchestrated smear campaign against the new management of the bank was masterminded by the Kola Daisi family, who are owners of both NSL and Strand Capital Partners Ltd, in order to avoid the critical issue of repayment of over N7b debt, which it has owed the bank since its consolidation in 2006.

"It is also important to note that contrary to claims in some quarters, the GMD/CEO is not on the run, but has vowed to frustrate every effort by the smear campaigners to fraudulently take away N5.2bn from the vaults of the bank.

"Already, the bank has secured an order of court restraining the police from further harassment of the GMD and others mentioned in the matter."