Concealment of Fraud: Don Etiebet Urges Court to Stop Merger of Access, Diamond Banks

Matilda Omonaiye/

In an attempt to stop the merger of Access Bank Plc and Diamond Bank Plc, a renowned businessman, Chief Don Obot Etiebet, who is also a shareholder of Access Bank Plc, has dragged the two banks before a Federal High Court in Lagos, urging the Court to stop the process of the merging arrangement on the ground of concealment of fraud.

Joined as co-defendants in the legal battle are Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN).

In an affidavit sworn to by Chief Don Etiebet and filed before the court by a Lagos lawyer, Barrister Olujumobi Orioye, the deponent averred that Access Bank and Diamond Bank commenced a scheme of merger on January 24, 2019, in a bid to merge both banks. SEC and CBN granted approval in principle to the scheme of the merger.

Thereafter, the Federal High Court directed that the meeting of the fully paid up ordinary shares of the bank be held.

However, Chief Etiebet alleged that prior to the commencement of the scheme of merger, Access Bank and two of its Directors were being investigated by the Police in an allegation bothering on forgery of bill of lading, obtaining money by false pretenses, conspiracy to commit felony, stealing of money, conspiracy to defraud amongst others.

He stated that the investigation led to the preferring of information in charge number HCS/01C/2019.COP VS Herbert Wigwe & others and Charge Number ID/8795C/2019-COP VS Cast Oil & Gas Ltd & others.

He also stated that the criminal charges are weighty and based on presumed fraud and if disclosed to SEC and CBN the already granted approval in principle would not have been granted.

Access Bank and two of its directors were accused of obtaining the sum of over $6,300,000 from Top Oil & Gas Development Limited for the supply of 10,000 metric tonnes of Automotive Gas Oil and converted the money to their own use and benefit.

Etiebet says in the court papers: “The amounts involved are substantial and makes the bank bogus than it claimed to be when it sought and obtained the approval for the scheme of merger.”

The applicant contended that he could exercise his right under section 300(d)and(f) of the company and Allied matters Act 2004 to seek the order of the court to restrain the respondents from continuing with the scheme of Merger between the two banks upon the pendency of the Criminal charges.

Chief Etiebet averred further that if he failed to protect his right in Access Bank Plc, his interest and right will be eroded completely, therefore it will be in the interest of justice to restrain the respondents from continuing with the scheme of merger between the two banks pending the determination of this suit, and delay in granting the application will entail irreparable damage and serious mischief to him if the application is not granted.

When the application came up for hearing Mr Orioye harped on the urgent need for the application to be heard but the presiding Judge, Mohammed Liman, while adjourning till April 4, 2019, for hearing ordered that the respondents should be put on notice by serving them the court process.

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