The head of Zenith Bank, Jim Ovia, has been charged by billionaire businessman Femi Otedola with fraud related to his company Seaforce Shipping Limited’s bank account.
The claims, which TheCable broke first, were supported by account statements that were part of the online Newspapers article. View the statement that is attached at the article’s bottom.
The claims made in the statement that Nairametrics examined revolve on illicit activities and the fabrication of a loan totaling billions of Naira.
The latest string of allegations follows a Premium Times report that also details other accusations labeled against Zenith Bank by Femi Otedola.
Read Also: Zenith Bank Named Most Sustainable Bank In Nigeria In The International Banker Awards 2024 For The Second Consecutive Year
Nairametrics reached out to comments from Zenith Bank corporate communications but no response was immediately obtained.
According to Otedola, Zenith Bank unlawfully utilized Seaforce Shipping’s account to conduct trading activities without his knowledge or consent. These unauthorized transactions reportedly began in 2010 and continued unabated despite the account not being operated since then.
TheCable reports that Otedola was tipped off about these activities by a whistleblower within Zenith Bank, leading to his discovery of the fraudulent transactions.
Otedola alleges that Zenith Bank fabricated a loan of NGN 6 billion on Seaforce Shipping’s account, which he asserts never existed.
This alleged fictitious loan, labeled as “CP Facility,” was followed by a series of debits and credits, creating the illusion of financial activity.
Read Also: Prudential Zenith Life Trains Insurance Brokers On Health, Well-Being
As per the account statements seen, significant debits included NGN 6,000,000,000.00 on February 7, 2008, and NGN 4,475,326,935.25 on February 7, 2009, among others.
TheCable’s report highlights that these transactions were conducted without Seaforce Shipping’s authorization or awareness.
Discrepancies in Account Balances: A major point of contention is the discrepancy in the reported debt amounts.
In a letter dated March 19, 2018, Zenith Bank informed Seaforce Shipping’s auditors, Shofolawe-Bakare & Co., that the account had a debt of only NGN 2,278,420.
However, the bank statement reviewed indicates a closing balance of NGN -5,916,704,059.13, with total debits amounting to NGN 16,927,628,581.84 and total credits of NGN 11,010,924,522.71.
Read Also: Zenith Bank Delivers N125.59 Billion Dividend To Shareholders
In response to these revelations, Otedola has taken legal action. Seaforce Shipping, along with Zenon, Luzon Oil and Gas, Garment Care Limited, and Otedola himself, has secured a federal high court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and the Central Securities Clearing System.
This injunction, as reported by TheCable, prevents these entities from trading shares or paying dividends until a motion for an interlocutory injunction is heard.
Zenith Bank declared a dividend of N3.5 per share on the 8th of April 2024 and made payments a month later.
This injunction subsists until the hearing of the motion on notice for interlocutory injunction.
Additionally, the Force Criminal Investigation Department (FCID) of the police is investigating the allegations. TheCable notes that senior officials of Zenith Bank have already been questioned as part of the ongoing probe.
