The Federal High Court in Lagos has scheduled January 20, 2025, for the arraignment of Chief Oba Otudeko, Chairman of Honeywell Group, alongside former First Bank Managing Director Stephen Onasanya, and others over allegations of misappropriating N12.3 billion from First Bank. The Economic and Financial Crimes Commission (EFCC) is prosecuting the case.

Charges Against the Defendants

The EFCC alleges that between 2013 and 2014, the defendants—Chief Oba Otudeko, Stephen Onasanya, former Honeywell board member Soji Akintayo, and Anchorage Leisure Limited, a company linked to Otudeko—committed fraud in several tranches of N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million.

The charges, outlined in a 13-count indictment, include:

1. Obtaining funds under false pretenses: Misrepresenting credit facilities applied for by entities such as V Tech Dynamic Links Limited and Stallion Nigeria Limited.
2. Money laundering: Facilitating unlawful transfers and conversions of funds for personal and corporate gains.
3. Forgery: Creating and using forged documents, including letters of application and authorization, to deceive First Bank.

The EFCC asserts that these actions contravene several laws, including the Advance Fee Fraud and Other Fraud-Related Offences Act of 2006, the Money Laundering (Prohibition) Act of 2011 (as amended), and the Miscellaneous Offences Act of 2004.

Specific Allegations

• False Pretenses: The defendants allegedly conspired to fraudulently obtain N12.3 billion by misrepresenting credit facility applications.
• Money Laundering: Several transactions, such as a N6.2 billion transfer to Stallion Nigeria Limited and a N2.09 billion transfer to Emmerado Logistics Limited, are highlighted as proceeds of unlawful activities.
• Undeclared Interest: Chief Otudeko is accused of failing to disclose his personal interest in a loan facility of N6.15 billion, sought by V Tech Dynamics Links Limited while serving as Chairman of First Bank.

Legal Proceedings

The case, registered as FHC/L/20C/2025, has been assigned to Justice Chukwujekwu Aneke. The defendants are expected to take their pleas on January 20. EFCC counsel, Mrs. Bilikisu Buhari, filed the charges on January 16, 2025.

Key legal provisions cited in the case include:

• Section 8(a) of the Advance Fee Fraud Act for conspiracy and obtaining money under false pretenses.
• Sections 18(c) and 15(2)(b) of the Money Laundering Act for laundering proceeds of illegal activities.
• Section 3(6) of the Miscellaneous Offences Act for forgery and uttering forged documents.

Financial Transactions Under Scrutiny

The EFCC provided details of several transactions, including:

• N6.2 billion transferred to Stallion Nigeria Limited.
• N1.5 billion and N500 million used for Honeywell Flour Mills Plc.
• Forged documents intended to legitimize these transactions.

Implications of the Case

The EFCC alleges that the fraudulent activities jeopardized First Bank’s financial stability and breached banking laws. The commission is determined to recover the diverted funds and hold those involved accountable.

Next Steps

The arraignment on January 20 will mark the start of court proceedings. The EFCC has vowed to present evidence to substantiate its claims and ensure justice is served.

This case underscores the EFCC’s commitment to combating financial crimes and promoting transparency in Nigeria’s financial sector.