A group, the Osun Itesiwaju Alliance (OIA), has submitted that the decision of Justice Friday .N Ogazi of the Federal High Court, Ikoyi, Lagos, to order the final forfeiture of about N6.67 billion worth of a mortgage bank’s shares and other funds that were described as proceeds of a Ponzi scheme was a vindication of Governor Ademola Adeleke’s stance on the running of the affairs of the Living Trust Mortgage Bank Plc.
Recall that the Economic and Financial Crimes Commission (EFCC) had submitted that the 2,041,087,747 share units of Living Trust Mortgage Bank Plc formerly Omoluabi Mortgage Bank Plc, were traced to Cititrust Holdings Plc, and its subsidiaries.
Cititrust Holdings Plc was also described as a Ponzi scheme operator,
The shares in question were valued at about N6.67 billion (N6,674,356,932.69).
Justice Friday Ogazi also ordered the final forfeiture of about N42.5 million (N42,461,096.66) and $26.44 in cash which were traced to Cititrust Holdings Plc and its subsidiaries.
The final forfeiture order was sequel to an earlier order of interim forfeiture of the assets in question.
The initial court order had ordered the publication of the interim forfeiture order in a national newspaper inviting any interested parties to show reasons why the assets in question should not be finally forfeited.
OIA in a statement issued in Osogbo and made available to Team@orientactualmags.com by its Chairman, Mr Paul Oderinu and Secretary, Mr Iwaloye Sulaiman noted that the Cititrust Holding PLC getting declared as an illegal company alongside 57 others by the Economic and Financial Crimes Commission (EFCC) and the subsequent forfeiture of its shares has justified the position maintained by Governor Ademola Adeleke on how things should be done in respect of the Living Trust Mortgage Bank Plc.
While urging continued support for the governor, the group also commended him for taking proactive measures to protect the interest of the state.
Recall that Alhaji Adebayo Jimoh, a former group Managing Director of Oodua Investment Company Ltd, had while in charge of the Living Trust Mortgage Bank Plc supervised the sale of its shares to Cititrust Holdings Plc in 2019,
This arrangement had made Citi Trust Holdings Plc own 41% ownership of the financial institution while Osun State government owns 40% ownership, the remaining 19 % is owned by diverse individuals with no single person having up to 10 % ownership.
‘That the transfer document showed that the 1st Respondent paid for the stocks in tranches between 2019 and 2021.That the transfer document also showed how the 1st and 3rd Respondents paid for the stocks in bit in the names of several companies as the acquisition vehicle as follows:
- CCL Corporate Services Limited -130.000.000.00 units
- CDP Insurance Brakers Limited -142.000.000.00 units
c. EM Tower Limited -139.000.000.00 units
d. First Guaranty Healthcare PC- 144.750.000.00 units
e. Mapplefield Capital limited -122.500.000.00 units
f. Mapplefield Energy Resource Limited 125.500.000.00 units
g. Mapplefield Power Limited -796.453.653.00 units
h. Cititrust Financial Services Limited- 1,400.000.000.00 units.
It is further deposed to in paragraph 26 -28 as follows:
That all the money traced to Allass Portfolios Limited were used in paying the stocks of Omoluabi Mortgages Bank Plc (now Living trust Mortgage Bank Plc) acquired by the 1st and 3rd Respondents.
That the money is from the investors’ investment
That the money is reasonably suspected to be the proceeds of crimes.
In essence the Applicant is asserting that the said money and the stock sought to be finally forfeited were purchased with the proceeds of unlawful activities and are not proceed of legitimate business and the aim of forfeited is to return same practitioners so that the respondents will not benefit from the proceeds of their unlawful activities’ a Certified True Copy (CTC) of the ruling quoted the judge as saying.
The judge also noted that Forensic Audit Reports prepared by Ini Utere &Co discovered ‘financial malfeasance’ which include failure of intercompany transactions to pass through due process and uncontrolled movement of funds between the Core capital and other companies within Citigroup.
Justice Friday .N Ogazi also noted that it was intriguing that CitiTrust did not contest the funds during its initial and final forfeiture.
‘I must observe that all the arguments of the respondents bordered only on the shares of Omoluabi Mortgage Bank Plc now Living-trust Mortgage Bank Plc. No argument was preferred in respect of the funds’-Team@orientactualmags.com Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com. Thank you
