The Nigerian government has re-arraigned Johnson Adeyeba, a former Director of the now-defunct Gulf Bank Plc, alongside British national Gareth Wilcox and four others, in connection with an alleged N15.7 billion fraud. The accused, including Babajide Rogers, the former Managing Director of Gulf Bank, and Uche Uwechia, the bank’s former Legal Advisor and Secretary, appeared at the Federal High Court in Lagos to face a 28-count amended indictment encompassing fraud and theft.

Prosecutors claim the defendants unlawfully appropriated funds from Gulf Bank, using Ibom Power Company and Lyk Engineering Company to siphon money through improper loans and overdraft facilities. Notably, one allegation includes a N450 million loan to Ibom Power Company granted without adequate collateral.

During the proceedings, prosecutor Rotimi Jacobs (SAN) highlighted that the case, initially filed in 2013, has faced delays due to various legal challenges. The alleged offenses reportedly took place on April 1, 2001, in Lagos. Jacobs stated that the third defendant falsely denied the liabilities of the fourth and fifth defendants regarding loans from Gulf Bank to evade repayment.

The charges also detail reckless approval of a $20 million bridging loan facility to Ibom Power Company on December 24, 2002, without necessary security, violating standard banking practices. Additional loans granted to Ibom Power Company and Lyk Engineering included sums of $9.2 million, N150 million, and N10 million on the same day.

Adeyeba, Rogers, and Uwechia are accused of approving a loan of N1.454 billion to Lyk Engineering on April 25, 2001, while Wilcox is charged with issuing a false statement regarding the company’s debenture to avoid repaying loans.

Between 2001 and 2004, the defendants are alleged to have improperly granted Lyk Engineering a $1.8 million loan and converted N1.8 billion from Gulf Bank to fund operational expenses. They are also accused of fraudulently misappropriating N15.76 million for personal ventures.

The charges fall under sections of the Failed Banks (Recovery of Debt) and Financial Malpractices in Banks Act, with significant penalties outlined. The defendants pleaded not guilty, and Justice Osiagor adjourned the case to December 13 for trial.