In a statement issued by the bank, Wema Bank said recent media reports surrounding the sale of the Banana Island properties were inaccurate, malicious and aimed at distorting the facts surrounding the transaction.
The bank explained that the matter originated from an inter-bank placement transaction entered into in 2002, when Wema Bank reportedly placed N4.6 billion with Gulf Bank Plc.
According to the statement, by August 2004, the exposure had reduced to about N1.2 billion before the outstanding obligation became delinquent.
Wema Bank stated that in a bid to recover depositors’ and shareholders’ funds, it initiated lawful recovery measures, which later formed part of a criminal investigation involving the former Managing Director of Gulf Bank Plc.
The bank disclosed that investigations by the Economic and Financial Crimes Commission (EFCC) allegedly revealed that the funds had been diverted and used to acquire properties in Banana Island, Lagos, through two companies — Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Ltd.
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Wema Bank stressed that the companies were distinct entities and not the same as Gulf Bank Plc.
“It is important to note that neither Bacad Finance & Investment Company Ltd nor its successor, Supra Commercial Trust Limited, nor Euston Wenberg Eng Ltd is one and the same as Gulf Bank Plc,” the bank stated.
According to the bank, the EFCC’s asset-tracing investigations uncovered what it described as significant underlying fraud, after which the two companies voluntarily relinquished their interests in the Banana Island properties toward settling Gulf Bank’s indebtedness to Wema Bank.
The bank maintained that the process formed part of its lawful recovery efforts against the defunct bank.
Wema Bank further claimed that following the liquidation of Gulf Bank Plc, the NDIC formally acknowledged the indebtedness in two separate letters dated September 26, 2007, and June 10, 2009.
According to the bank, one of the letters was addressed to the Federal Land Registry, while the second was addressed directly to Wema Bank Plc.
The lender added that both documents had already been filed before the Federal High Court in Lagos as part of ongoing legal proceedings before Justice Allagoa.
Wema Bank also alleged that after the sale of the properties, the NDIC paid the shortfall owed to the bank, arguing that the action demonstrated that the corporation was aware of and involved in the settlement process.
The bank argued that based on the relinquishment of the properties, NDIC’s acknowledgment of the debt and the subsequent payment of the shortfall, the corporation could not now contest the legitimacy of the transaction or Wema Bank’s recovery process.
While confirming that the NDIC had instituted two separate suits against the bank at the Federal High Court in Lagos in its capacity as liquidator of Gulf Bank Plc, Wema Bank said it would refrain from making detailed comments on matters already before the court.
“As these matters are currently before the court and therefore sub judice, Wema Bank will refrain from commenting further on issues that fall for judicial determination,” the statement noted.
The bank, however, said it would continue to pursue all legal means necessary to defend its rights and interests in the matter.
Wema Bank reiterated its commitment to corporate governance, regulatory compliance and ethical banking practices, assuring customers, shareholders and stakeholders that it remained committed to transparency and responsible banking operations.
The bank also vowed not to “succumb to the shenanigans of unscrupulous individuals who want to reap where they did not sow.”
