Banking
As the court stripped former Managing Director of the defunct Bank PHB, Francis Atuche of proceeds of funds stolen from the bank in a landmark judgment, the Economic and Financial Crimes Commission may have sent a strong warning to chief executives of banks and other public quoted companies about its resolve to pursue its anti-crime war to a logical conclusion, no matter how long it takes, reports Festus Akanbi
It was Douglas Horton, an American Protestant clergyman and academic leader, who lived between 1891 and 1968, that succinctly captured the stark reality of a fall from a position of grace with his popular quote, “To hit bottom is to fall from grace.”
For the convicted former Group Managing Director of the defunct Bank PHB, Mr. Francis Atuche, it’s a devastating fall from grace when a Lagos State High Court in Ikeja, last Thursday froze his assets and funds to the tune of N19,178,253,050 allegedly kept in 24 banks.
With the judgment, Atuche has been stripped of all the cash and assets stolen from the bank where he presided as chief executive between 2007 and 2008. His pleas could not save him from the court hammer just like his co-traveller in the stealing binge, Mr. Ugo Anyanwu, a former Chief Financial Officer of the bank, who has since been sent to jail.
The two were in June this year, convicted on at least six of a 27-count amended charge of conspiracy to commit a felony and stealing brought against them by the Economic and Financial Crimes Commission (EFCC).
While Atuche who was found guilty on counts 1, 3, 5, 7, 9, and 23 of the charge would serve a 6-year term for each count, Anyanwu will serve a 4-year jail term for counts 2, 4, 6, 8, 10, 11, 22 and 24 of the amended charge.
They are to serve their jail term consecutively. This sentence is coming after a trial that lasted over 12 years.
In delivering her sentence, Justice Okunnu held that the EFCC successfully proved its case against the convicts beyond a reasonable doubt.
Gone with the Winds
Consequently, his assets and funds in the following banks were frozen: Access Bank Plc, Citi Bank Ltd, Ecobank Nigeria Ltd, Fidelity Bank Nigeria Plc, First Bank of Nigeria Ltd, First City Monument Bank, and Globus Bank Ltd.
The list also includes Guaranty Trust Bank Plc, Heritage Bank Ltd, Keystone Bank Ltd, Lotus Bank Ltd, Mainstreet Bank Plc, Polaris Bank Plc, Platinum Mortgage Bank Ltd, Providus Bank Ltd, and Stanbic IBTC Nigeria Ltd.
The rest are Standard Chartered Bank, Sterling Bank Plc, Titan Trust Bank Ltd, Union Bank of Nigeria Plc, United Bank For Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
Justice Lateefat Okunnu made the order sequel to an August 17 application by the Economic and Financial Crimes Commission (EFCC) in Charge No. ID/1549/2011 between the federal government on the one hand and Atuche and Ugo Anyanwu as first and 2nd defendants.
Justice Okunnu, while sentencing Atuche and Anyawu, recently, had ordered that they should make restitution of the N25.7billion to the federal government to replace the funds stolen from the public to bail out the bank.
The EFCC team led by Kemi Pinheiro (SAN), had in 2011, charged Atuche; his wife, Elizabeth, and Anyawu with a 27-count charge of conspiracy and stealing of N25.7 billion belonging to Bank PHB via fictitious loans and shares.
Atuche and his spouse were accused of fraudulent conversion of money described as bank loans.
The EFCC said that the couple diverted funds belonging to the bank by buying shares for fictitious companies linked to them.
Anyanwu on the other hand, was accused of using his position as the bank’s CFO to aid Atuche in committing the crimes.
The anti-graft agency said that the trio stole more than N25.7 billion belonging to the defunct Bank PHB (now Keystone Bank) between November 2007 and April 2008, while Mr. Atuche was the chief executive officer.
Fallen from Grace
When it dawned on the former bank chief that his initial grandstanding would take him to nowhere as far as the criminal case against him was concerned, he decided to appeal for leniency when the case came up in June this year, claiming that never at any material time did it occur to him that he would set up a scheme to defraud the bank.
“I plead for mercy, leniency, your kindness, and I plead that out of your kindness and generosity, you will not allow me to go to jail. I am sorry and remorseful,” he said.
Atuche told the court that as a professional banker and chartered accountant, he certainly did not want to become a convict.
“I pray that God will place in your heart to be kind. I plead from the bottom of my heart. I’m extremely sorry; today will be a turning point in my life, I’m very sorry,” he said.
As the EFCC continued to turn the heat against him, the disgraced bank chief broke down and said: “What I achieved in the banking industry is by stint of hard work. I have suffered in the last 10 years of this trial.
“I am sorry if I was appearing cocky in the witness box during my examination-in-chief.
“I have two kids who are barely teenagers. They look up to their father, and I wonder what kind of impact this will have on them.”
Day of Reckoning
Banking industry affairs commentators described the judgment as a day of reckoning for Atuche. They pointed out that with the seizure of his entire assets and life savings in Nigeria and overseas, there is no doubt that the EFCC was sending a serious warning to bank chiefs with potential criminal tendencies that a nemesis must surely catch up with them.
Beyond the material losses, analysts doubt if the indicted individuals can ever be trusted again in any corporate environment, both in Nigeria and abroad with the landmark judgment that left them with nothing to hold back unto.
Barred from Proceeds of Financial Crimes
In the latest judgment, the judge granted the agency’s 12 prayers pursuant to sections 6(d), 20, 24, 26(1), 30, and 34(1) of the EFCC Act and sections 290, 294, and 297 of the Administration of Criminal Justice Law 2015, filed by the prosecution counsel led by Pinheiro.
Justice Okunnu held: “An order is made restraining the 1st defendant (Atuche) whether by himself or acting through the persons or entities listed or such other persons including but not limited to his family members or agents, from removing, alienating, disposing of, dealing with or diminishing the value of assets, proceeds of economic and financial crimes or otherwise in the name of the 1st defendant…”
She noted that the assets or funds included those held indirectly by or for Atuche’s benefit, whether solely or jointly held, that is located in Nigeria or worldwide.
The judge further froze any bank account being run and operated by Atuche “personally or jointly, whether in his name or otherwise or with the Bank Verification Number: 22295357230 in any of the respondent banks to the tune of N19,178, 253, 050.00 only, pursuant to the restitution order made by this honourable court on the 16 day of June 2021.”
She barred Atuche and his privies – including his lawyers – from presenting to the respondent banks any mandate or instruction for the withdrawal of any money and/or funds standing to the credit of any of their accounts to the tune of N19,178,253,050.
In another order, she restrained the banks from honouring any such instruction from Atuche and his privies.
The judge added: “A mandatory order of injunction is made directing the named respondent banks to file within 48 hours of service of this order of this honourable court on their returns of the Statements of Account of the 1st defendant (personally or jointly) whether in his name or otherwise or with the Bank Verification Number: 22295357230 and the accounts of persons and entities listed in the aforementioned Schedules A and B maintained with them…
“A further order is made directing service of the order made herein on persons affected thereby including in particular, the persons and entities listed in Schedules A and B. by way of advertisement in either The Punch or THISDAY or The Guardian newspaper.
According to the EFCC, 15 persons were used as a front by Atuche to launder the funds.
They are: Anthony Atuche, Emeka Patrick Atuche, Paul Okobi, Felix Oyiana, Moruf Kazeem Adisa, Olatunji Abiodun, Daniel Enebeli, Aina Olugbenga, Augustine Nwabueze, Omonua Benedict, Oliver King Nduaaron, Dr Chris Ike Ogbechie, Mr Murat Bektaslar, Attah Omataikpo Olukemi and Thomas Etuh.
The EFCC said all the offences were committed between April and September 2008.
On the same day, Elizabeth Atuche was arraigned before another judge, Lateefah Okunnu, on a three-count charge of conspiracy and stealing. She was accused of fraud totalling N11.4 billion “being property of Bank PHB Plc by fraudulently converting the proceeds of several illegal loans for the acquisition of 337,500, 000 units of Bank PHB Plc shares on behalf of Ghazali Yakubu Investment Ltd. and AFCO Associates Limited.”
During Mrs Atuche’s bail hearing, her lawyers pleaded for the judge to allow her to remain in EFCC custody to enable her three young children to visit her regularly. The judge declined the request, ordering that she be remanded in prison until she fulfils her bail conditions: two sureties who must deposit N100 million and also possess a landed property worth N25 million in Lagos.
Certainly, Atuche would have wished to turn back the hands of the clock, but it’s too as the Thursday judgment has set him many years behind.
