Probe of Intercontinental Bank’s sale ‘stalled’

There are fears that the Economic and Financial Crimes Commission (EFCC) may shield key personalities involved in the controversial sale of Intercontinental Bank Plc to Access Bank Plc in 2012.

The anti-graft agency, which recently quizzed the managing director of Intercontinental Bank at the time of the sale, Mr Lai Mahmoud Alabi, “has given clear indications that it will not pursue the matter to a logical conclusion”, an insider told TheCable.

However, the EFCC spokesman, Mr Wilson Uwujaren, has told TheCable that investigation was still on, contrary to the insinuations of a possible cover-up.

But another insider said the transactions that led to the sale followed “due process” and there was nothing more the EFCC can do about it ─ even though the commission is yet to invite or question many key persons named in the controversial deal.

Former owner of Intercontinental Bank, Mr. Erastus Akingbola (pictured), is alleging that the bank was fraudulently acquired by Access Bank through a series of “balance sheet depletion” ─ otherwise known as deliberate undervaluation.

Akingbola said there was a N95bn overprovisioning for loans, another questionable individual loan write-offs totalling N7.6bn and a N55.5bn “massive loan write-off” by the Central Bank of Nigeria (CBN).

He also alleged that unpaid loans by the MD and deputy MD of Access Bank at the time of the sale were worth N10bn, while there was an indiscriminate loan purchase by the Asset Management Corporation of Nigeria (AMCON) to the tune of N476.9bn.

Akingbola, who was one of the five bank CEOs removed by the CBN on August 14, 2009 during the banking crisis, claimed that his bank was worth N1.3tr but was sold to Access Bank for a “paltry” N50bn.

He is currently undergoing trial over his role in the crisis that hit Intercontinental Bank but he wants the sale reversed because of the allegations of fraud.

Akingbola had, among other allegations, complained about the role of Alabi who oversaw the “fraudulent sale”.

Former Kwara governor Bukola Saraki is said to have benefitted from the “questionable deals” with the 81% waivers granted on his indebtedness to Intercontinental Bank by Alabi, suspected to be his business associate.

When Akingbola was removed as the bank’s CEO, Alabi was appointed in his place, allegedly on the recommendation of Saraki.

Alabi’s close relationship with Saraki, who is also very close to former CBN governor Lamido Sanusi, allegedly influenced the “unfair deals” leading to the sale of Intercontinental to Access Bank.

Saraki is also believed to have nominated Sanusi as CBN governor in 2009 when Alhaji Umaru Musa Yar’Adua was president.

EFCC is yet to invite or question other key players mentioned in Akingbola’s petition to President Goodluck Jonathan.

The acquisition of Intercontinental Bank is already a subject of litigation by the shareholders who felt shortchanged by CBN, AMCON and Access Bank in the transaction.