A former First Bank manager alleges in court that loans worth billions were diverted to companies linked to ex-chairman Oba Otudeko. The case, involving claims of financial misconduct and unsecured loans, highlights serious concerns about corporate governance at the bank and ongoing investigations by the Economic and Financial Crimes Commission.
In a recent court filing, a former relationship manager at First Bank of Nigeria, Adesuwa Ezenwa, alleged that loans worth billions of naira were diverted to companies linked to Oba Otudeko, the former chairman of the bank. Ezenwa, who is suing the bank for unfair dismissal, claimed that these loans were fraudulently channeled through companies with connections to Otudeko and other top executives under the guise of being granted to other firms.
She detailed instances where large unsecured loans were rerouted to companies such as V Tech Ltd and Ontario Oil and Gas, both allegedly tied to Otudeko, with some of these loans remaining unpaid.
The case raises significant concerns about corporate governance and the integrity of financial practices within the bank, as Ezenwa contends that the board of directors must have been aware of these transactions given their scale.
This revelation has added to the ongoing scrutiny of Otudeko’s financial dealings, particularly his controversial acquisition of a significant stake in FBN Holdings, which has also drawn the attention of the Securities and Exchange Commission.
