N17 Billion Debt: 13-Banks And 60-Officials Face Contempt-Charges (View Details)

N17 Billion Debt: 13-Banks And 60-Officials Face Contempt-Charges (View Details)

The Federal High Court in Lagos will hear contempt proceedings filed by Guaranty Trust Bank (GTB) against 13 banks and 60 executives on June 20. This is part of a suit to recover a N17 billion Anchor Borrowers Programme loan from Afex Commodity Exchange.

Justice Chukwujekwu Aneke issued the order on June 11, 2020, after GTB’s counsel, Ade Adedeji (SAN), along with A.O. Olaleye Esq, moved a motion ex parte in Suit FHC/L/CS/911/2024. The judge directed GTB to serve the banks by substituted service through advertisements in The Nation, Punch, and ThisDay newspapers.

The contempt motion names various bank leaders, including chairmen, managing directors, directors, and company secretaries, for allegedly failing to implement a May 27 No-Debit Order on Afex Commodity Exchange’s accounts.

Justice Aneke ordered, “An order is hereby made granting leave to the plaintiff/applicant to serve Form 48 (Notice of Consequences of Disobedience to Order of Court) dated June 11, 2024, and all other forms and processes that may be issued in this contempt proceeding, inclusive of Form 49, on the 1st-60th parties cited for contempt. The suit is hereby adjourned to June 20 for hearing of the contempt proceedings.”

In the May 27 ruling, 20 banks were directed to transfer funds from Afex’s accounts into GTB’s account until the N17.81 billion loan, comprising N15.77 billion outstanding as of April 17 and N2.04 billion in recovery costs and incidental expenses, is fully repaid.

The court also allowed GTB to take over and sell commodities from Afex’s 16 warehouses across seven states, procured with the Central Bank of Nigeria’s Anchor Borrowers’ loan facility.

Earlier, the court served contempt proceedings on AFEX officers, including Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye, and Koonal Ghandi. The plaintiffs claimed AFEX sourced the loan to finance smallholder farmers under the CBN Anchor Borrower’s program but failed to repay the loan despite an extension.