Chief Anthony Idigbe, counsel to the former Managing Director of Bank PHB, Francis Atuche, on Tuesday disagreed with an allegation that his client granted loans without the board's approval.
Idigbe faulted the allegation while cross-examining an EFCC field investigator, Mr David Nkpe, who had given the indication during his testimony at an Ikeja High Court.
The News Agency of Nigeria (NAN) reports that Atuche, his wife, Elizabeth and a former Chief Financial Officer of the bank, Ugo Anyanwu, are charged with stealing by the EFCC, before Justice Lateefat Okunnu.
The commission alleged that they stole over N25.7 billion belonging to Bank PHB (now Keystone Bank) between November 2007 and April 2008, whilst Atuche was the Chief Executive Officer.
Nkpe, in his testimony, had listed three companies, Future View Financial Services Limited, Trajek Oil Limited and Extra Oil Limited, as being among those that got part of the multi-billion naira loans that were granted without the board's approval.
?”The Credit Control Officer of the bank, Mrs Philipa Ulasi,? told us that the loans were not presented to the board for approval because it was her duty to present them,” he had said.
However, Idigbe, while cross-examining the witness, said that minutes from the bank's board meeting of July 9, 2008, revealed that the loans were ratified by the board.
He also queried how Ulasi's signature was appended on the said minutes if she claimed that they were not ratified by the board.
Idigbe said: “The business of the bank (granting of loans) is the same issue they say amount to stealing.
“The loans were duly approved by the Management Credit Committee (MCC) of the bank and it was duly signed by the members”.
He, therefore, tendered the said minutes of meeting which was admitted by the court as exhibit.
Idigbe also faulted claims by the owners of the three companies that the bank granted the loans without their knowledge.
He said that the loans were granted to the companies to participate in Bank PHB's 2007 public offer and were later regularised.
“When there are lapses in a transaction, it is a normal procedure for the bank to regularise the transaction.
“This is usually done through deferral and this is what happened in the said transactions,” Idigbe said.
Nkpe, under cross-examination, however, maintained his testimony that his investigations showed that the loans were granted without the approval of the board.
“My investigations showed that the loans were not ratified by the board.
“The transactions took place in 2007 and the purported ratification took place in 2009,” he alleged.
NAN reports that the matter was adjourned to June 11 for continuation of trial.