A company owned by former aviation minister, Stella Oduah, Sea Petroleum and Gas company limited and six of its directors, have sued the Economic and Financial Crime Commission(EFCC) after the anti-graft agency invited them for questioning over unpaid bank debt.
Joined as co-respondents are Union Homes Saving and Loans Plc and a Lagos lawyer Barrister Ken Ahia.
The legal action of the applicants was sequel to letters of invitation sent to them by the anti-graft agency to come and state their own side, in respect of a petition written to the EFCC by Union Homes Saving and loans Plc accusing the directors, HUMPPHREY ENECHUKWU,IFEANYI DAVIS OKOH, MAGDALENE UDUMEBRAYE IDEH, EMMANUEL NNAMDI NWAOBU, THEOPHILUS ANAEKENWA AGUGUOM, NWAKA OGEYINGBO including the former aviation minister Stella Oduah of diverting N142,000,000 the bank loaned Sea Petroleum and Gas company limited.
In the said petition dated 6th of February 2015,the former aviation minister was alleged to be owing Union Homes Savings and Loans Plc the sum of one hundred and forty two million Naira, which she has refused to pay despite several concessions.
Though Oduah and the applicants have the ability and capability to repay the loans, ,the former minister and the six Directors of Sea Petroleum company were accused of diversion of bank’s funds in the said petition, consequently in the petition jointly signed by the head of debt recovery K.M Theophilus and Consultant(special Recovery)Inam Ukotak, Union homes Saving and Loans, urged EFCC to investigate the matter.
But in an affidavit sworn to by Executive Director of Sea Petroleum and Gas company Humphrey Enechukwu, in support of the fundamental right enforcement suit filed before the court by a Lagos Lawyer A.O Agboola, the deponent averred that, Sea Petroleum and Gas company bought numerous houses at millennium homes Oniru private estate, Lekki sometime in the year 2007 in which it accommodates its senior staff including the applicants.
The houses were purchased with loans obtained in the name of the company from Union bank Plc and Union homes Saving and Loans.
Due to general economic down turn between 2008 and 2009 in Nigeria, the company was unable to service its loans obligations to Union Homes Savings and Loans and when the facility were about to be classified as bad debts which would have resulted in the applicants losing their residential apartments, In other to avoid being thrown out into the street, it was agreed between the parties that the loan be restructured.
Consequently, the loan was restructured and fresh letters of offers dated 31st of December, 2009 were issued by Union Homes savings and loans to the applicants, no money was physically given to them as the loan were made by means of notional transfers within the account of Union Homes Savings and Loans.
Enechukwu averred further that the total amount advanced and treated as mortgage loans to the applicants and Stella Odua was the sum of #422,500,000 and as of 9th of may 2014 the applicants have repaid the sum of #367,931,647.34 to Union Homes Savings and Loans.
However, despite the series of good faith efforts being made to repay the loan, on the 2nd of march, 2015, the applicants received letter of invitation from EFCC in connection with the mortgage loan.
The allegation of diversion of fund raised by the respondent is a clever ruse by the respondents to give the contractual issue between the parties a veneer of criminality to justify using the EFCC as a debt recovery agency.
Consequently the applicants are urging the court to declare that EFCC’s threat of their arrest and detention at the behest and instigation of Union Homes Savings and Loans and Barrister Ken Ahia for the purpose of enforcing the payment of a mortgage loan alleged to have been due from the applicants is a gross violation of the applicants fundamental rights as guaranteed by the constitution of the Federal republic of Nigeria, therefore illegal and unconstitutional.
The applicants are also urging the court to restrain the respondents and their agents from arresting and detaining them in respect of any matter pertaining to their contractual obligation to Union Homes Savings and Loans limited.
However in counter affidavit sworn to by a manager of Union Homes Savings and Loans Plc Chika Onwubuya, she averred that, the loan facilities were granted to both the applicants and to Princess Stella Odua, a former minister of aviation who is the Managing Director and Chief Executive officer of Sea Petroleum and Gas company limited, and that Part of the conditions for the grant of the loan was for her company to domicile the salary account of the applicants with Union bank which is a parent company of the Union Homes Savings and Loans Plc but Union Homes Savings and Loans Plc later discovered that after the loan was granted to the applicants, the salary proceeds of the applicants were fraudulently diverted to other purposes thereby deceiving the mortgage bank.
Preliminary investigation also revealed that Princess Stella Oduah, who is a politician and former minister of aviation Nigeria fronted some of the applicants and used them as proxy to collect facilities from the Union Homes Savings and Loan Plc.
Onwubuya averred further that the applicants have severally frustrated Union Homes Saving and Loans plc from having access to the title documents of the property which was part of the collateral used for the facility.
When the mortgage bank observed that the salary proceed of the applicants as part of the security for the loan was diverted from purpose of repayment of the loan to other purposes, and the conduct of Stella Oduah fronting some of the applicants and using them as proxy to collect loan, thereby deceiving Union Home Savings and Loan Plc, the company petitioned EFCC to investigate the fraudulent diversion of funds by the applicants.
The deponent also averred that the substantial part of the applicants outstanding sum of the loan have not been repaid till date after undertaking to do so, therefore contented that, the applicant instituted this suit with the intention of stopping EFCC from investigating the activities of the applicants who converted to their use the Union Homes Savings and Loans Plc’s money obtained by false pretense.
In view of these scenario the respondents urged the court in the interest of justice to dismiss the suit of the applicants and allow EFCC to perform its statutory duties as it has the power to recover proceeds of fraud and return same to the owners.
In his response, Mr. Ken Ahia in an affidavit sworn to on his behalf by a legal practitioner Oyedika Nwosu, contended that his law firm was instructed by Union Homes savings and Loans Plc to recover the debt owe it by the applicants and Stella Oduah as same has become due for repayment.
All the steps taken by the law firm were steps known to law as they never petitioned EFCC therefore the right of the applicants have not been infringed, consequently urged the court to dismiss the suit of the applicants.
In a counter affidavit sworn to by an EFCC operative, Olusegun Oloruntuyi, EFCC while denying the contents of the applicants affidavits in its entirely averred that a petition dated 6th February, 2015 written by Union Homes Savings Loan Plc was received by EFCC and assigned to his team to investigate.
Oloruntuyi averred further that there is no ruse and EFCC is simply carrying out its statutory duty of investigating allegations of crime, and steps taking so far by EFCC was to invite the applicants and the applicants have not honour the said invitation.
The lawsuit between Sea Petroleum and Gas company limited, its directors including Stella Oduah and Union Bank with EFCC has been adjoined for judgment.
