Diezani Alison-Madueke’s Husband in Debt Scandal

Society Watch

Just as a former Minister of Petroleum Resources, Diezani Alison-Madueke, is trying to wriggle herself from the claws of the law over her alleged involvement in corruption, her husband, Rear Admiral Alison Madueke (rtd) is currently enmeshed in yet another court scandal.

Unlike his wife who is being wanted by the EFCC to face the corruption charges against her, the retired Chief of Naval Staff has been taken to court by the Asset Management Corporation of Nigeria (AMCON) over a debt of N1.6 billion.

The loan recovery agency recently obtained an order from a Federal High Court in Lagos to freeze and attach his accounts domiciled in any of the 27 commercial banks in Nigeria listed before the court.

It was alleged that sometime between 2007 and 2009, the Galaxy Wireless Communication Limited, with the approval of its Board of Directors, applied for and was granted various credit facilities from First Inland Bank to finance its telecommunications operations.

The telecommunications firm, it was gathered, has the retired Rear Admiral as its Chairman.

By an offer letter dated August 2, 2007, the bank was said to have granted a facility sum of $2 million disbursed in three tranches to the company to facilitate its telecommunication services. The tenor of the loan was 90 days.

Society Watch gathered that the loan was secured by an all asset debenture of the present and future assets of the company’s comprehensive insurance of the equipment purchased with the facility, denoting the bank as first loss payee; domiciliation of the company’s subscription payment with the bank and personal guarantee of Engr. Gerald Nwosu.

By a Board Resolution of the company dated August 10, 2007, the above-mentioned facility was accepted by the defendants.

On January 28, 2008, another credit facility in the sum of N40,000,000.00  was granted by the bank in favour of the company. The tenor of the facility was 12 months at an interest rate of 19 per cent per annum. The loan was also secured by the previous conditions.

The said offer was accepted by the company through its board resolution dated January 30, 2008.

On September 23, 2008, a further credit facility in the sum of N327 million was granted to the company by the bank to facilitate a contract with the Rivers State government. The tenor of the loan was 12 months and the same was secured with a lien on the APG funds of N327,600,000;  personal guarantee of Nwosu; and counter indemnity from Fin Insurance company as a director. The loan was accepted by the company through its board resolution dated  September 24, 2008.

Following a request by the company, the bank approved a credit facility in favour of the company in the sum of N1,354,320,000.00  conveyed by an offer letter dated May 15, 2009.

The duration of the facility was 180 days and the above-mentioned facility was secured with an all asset debenture of the present and future assets of the company, personal guarantee of Nwosu, comprehensive insurance on the equipment purchased with the facility and the Deed of Debenture between the bank and the company.

The company, through its Board Resolution dated May 15, 2009, accepted the above-mentioned offer.

However, Galaxy Wireless Communication Limited was alleged to have failed and/or neglected to repay a substantial portion of all the loan facilities granted to it upon the expiration of its tenor.

By the letters dated August 24, and 31 2009, the bank formally demanded the company liquidate its debts arising from the various loans granted to them.

The demands from the bank allegedly went unheeded as the company failed and/or neglected to repay the loan within the specified period. Consequently, the loans granted to the defendants became toxic.

In addition, Fin Insurance Company Ltd, which accepted to indemnify the First Inland Bank Plc on the credit facilities granted to the company failed and/or neglected to do so.

In view of this, AMCON, by its statutory functions, bought the loans from the bank as Eligible Bank Assets.

By the purchase of the loans by AMCON, it became entitled to recover the debts from the company as well as its directors, beneficiaries and guarantors by the provisions of the AMCON Act as amended.

The outstanding debts of the company arising from the various loan facilities granted to it, as at the time of filing the suit,  is to the tune of N1,609,626,330.62.

AMCON stated further that by acquiring the indebtedness of the company from the bank, thereby being subrogated, it is entitled to exercise all the rights and powers regarding the recovery of the debts.

AMCON is desirous of recovering the N1,609,626,330.62 being the outstanding principal and accrued interest on the facilities granted to the company.

AMCON noted that given the protracted default of the defendants to liquidate their indebtedness, it has become manifest that except the court intervenes in this case, the defendants will tarry in their default.

Consequently, it is seeking an order freezing and attaching the various bank accounts of all the defendants, excluding Fin Insurance Company to the tune of N1,609,626,330.62 in 27 banks in Nigeria pending the determination of the substantive suit;  an order freezing and attaching the account of the Fin insurance company to the tune of N327,600,000 in 27 banks in Nigeria, being the surety sum in favour of the company regarding the credit facility obtained from First Inland Bank Plc;  an order granting the immediate possession pending the determination of the suit to the plaintiff to take interim possession of the following properties which it has reasonable cause to believe belong to the defendants or respondents.

However, in an application accompanied by an affidavit sworn to by one Esther Ajayi and filed before the court on behalf of Admiral Allison Madueke by a Lagos lawyer, Owukori Akuiyibo, seeking the order of the court to set aside the order made against the former Naval boss, the deponent avers that she was informed by Madueke that, he was informed of the existence of this suit from an associate on March 23, 2022, and immediately engaged a lawyer to carry out some due diligence on the suit.

“Upon careful study of the exparte order, he realized that the said order was issued against him on the wrongful premise that he was in some way affiliated with Galaxy Wireless Communication Limited company.

He is not a director, shareholder, Chairman, Board member, staff or in any form or manner associated or affiliated with the company, its registered executives or any other defendants in this suit,” Akuiyibo added.