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BUSINESS: GTBank Drags 60 Bank Executives To Court Over N17bn Debt

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Guaranty Trust Bank has dragged no fewer than 60 top executives of 13 commercial banks to court as a pending suit between GTBank and Afex Commodity Exchange over N17bn Anchor Borrowers Programme loan lingers.

The 60 executives including the chairmen, chief executive officers, directors, and company secretaries of the 13 banks are facing contempt proceedings for allegedly failing to implement a No-Debit-Order reportedly placed on the accounts of Afex Commodity Exchange with the banks.

In suit no FHC/L/CS/911/2024 involving Guaranty Trust Bank Limited and AFEX Commodities Exchange Limited, the Federal High Court, Lagos division presided by Justice CJ Aneke signed an order for the bank chairmen, MDs, directors, company secretaries and the liquidator of Heritage Bank (Nigeria Deposit Insurance Corporation) to be committed to jail for failing to obey its May 27, 2024 ruling.

A legal notice titled ‘Order to serve notice of disobedience to order of court vide newspaper publication’ published in some national dailies on Thursday, partly read, “An order granting leave to the Plaintiff Applicant to serve Form 48 (Notice of Consequences of Disobedience to Order of Court) dated 11th June, 2024 and all other forms and processes that may be issued in this contempt proceedings inclusive of Form 49 on the 1st-60th parties cited for contempt

The matter was adjourned to next Thursday.

Parties cited for contempt include  Access Bank, Citibank, Jaiz Bank, Union Bank, Fidelity Bank, First Bank of Nigeria Plc, First City Monument Bank, NDIC (liquidator for Heritage Bank), Polaris Bank, Stanbic IBTC Bank, Standard Chartered Bank, Taj Bank, United Bank for Africa and Zenith Bank alongside its principal officers.

In the court ruling dated May 27, 2024, twenty banks were directed to transfer monies standing to the credit of the respondent into the AFEX’s account with GTB until the N17.81bn is repaid.

The N17.81bn loans comprise N15.77bn; the amount outstanding and unpaid, as of April 17, 2024, and the cost of recovery and incidental expenses in the sum of N2.04bn.

The court also granted an injunction allowing GTB to take over AFEX 16 warehouses located across seven states and sell the commodities stored in them, which it said were procured with the Central Bank of Nigeria Anchor Borrowers’ loan facility.

Earlier in the month, the court had served contempt proceedings against AFEX and some of its principal officers including Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye and Koonal Ghandi.

According to court papers, AFEX had sourced the Anchor Borrowers Programme Loan facility from GTB to provide finance for smallholder farmers registered under the CBN Anchor Borrower’s programme.

The loan was expected to be repaid from the sale of commodities. However, AFEX failed to uphold its end of the deal even after an extension.

In a statement following the interim court order, AFEX claimed that it had repaid about 90 percent of the loan facility.

“However, a portion of the loan remains outstanding with the farmers and while we have paid out a portion out of our own purse, we remain in discussions with CBN over the outstanding amounts of the said facility,” the exchange said.

It also said the full value of the loan was utilised to provide input to farmers in three consecutive seasons, starting in 2020.

The exchange added that it had remained consistent with repaying the loans until economic headwinds impacted the operations of the farmers that they had disbursed the money to.

“Over 800,000 hectares of farmland were financed through the course of the programme’s operationalisation; however, significant macro and policy headwinds, including the cash crunch on the back of the Naira redesign policy, severely impacted the productive capacity and market participation of the smallholder farmers in the 2022/2023 season.

“This resulted in less than 40 cent repayment from farmers on their input loan bundles, down from our 90per cent repayment rates in the previous eight years of providing input financing for farmers. The low repayment rate ultimately impacted on our ability to refund the full value of the loan at the end of Q1 2023 and following a 6-month extension period,” AFEX added.

The commodities exchange also stated that the lingering effects of the cash crunch have continued to impact farmers, who sold at below market value to get immediate cash inflows to sustain their families in the period and remain unable to pay back.

Meanwhile, AFEX has called on the Central Bank of Nigeria to activate the collateral guarantee of up to 70 per cent clause included in the Anchor Borrowers programme.

“Evidenced in the attached letters, our engagements with Guaranty Trust Bank Limited, a Participating Financial Institution in the program, as well as the apex bank have seen us highlight these limitations on the part of the defaulting farmers with suggestions being made to the CBN to activate the risk-sharing structure put in place for the program and release funds accordingly to sustain activities and allow for needed recovery efforts in our agriculture sector.

“In light of these engagements, we consider the recent steps by Guaranty Trust Bank Limited to be premature, coming in the midst of open conversations that are being had with all parties to find a path to resolution that does not unduly punish farmers, who have been the biggest hit by macroeconomic conditions that they had no control over,” AFEX concluded.

CBN at the inception of the programme in 2015 said the broad objective was to create economic linkages between smallholder farmers and processors to increase agricultural output and ensure food price stability.

The  Anchor Borrowers’ Programme guidelines stipulate that upon harvest, benefiting farmers are to repay their loans with produce (which must cover the loan principal and interest) to an anchor, who pays the cash equivalent to the farmer’s account.

By 2022, at least 4.8 million people had benefitted from the Anchor Borrowers Programme and the  CBN in a 2023 statement said it released N1.079tn  under the programme, out of which over N500bn is due for repayment.

The programme has since been discontinued by the CBN as it pivots from development financing interventions to its core duty of price and monetary stability.

BIG STORY

Doyin Okupe Reacts To Peter Obi’s Viral Video, Says I Cannot Support Him Again

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Doyin Okupe, the former director-general of the Labour Party (LP) presidential campaign in 2023, says he “cannot support” Peter Obi again.

Okupe spoke on Monday during an interview with Seun Okinbaloye on Channels Television’s Politics Today.

He was reacting to a viral clip of Obi commenting on how the country’s economic situation offers little relief to people in the south-west, despite President Bola Tinubu being from the zone.

“Let us talk about what is happening today. Rice is about N100,000. We are not even sure where we are going to be. ‘It’s our turn’, ‘he is a Yoruba man’ — ask the people in Ogun, here is there any place you people buy bread cheaper?” Obi said in the viral clip.

The video generated mixed reactions on social media, with some supporting Obi’s comments while others criticised him.

Adding his voice to the criticism, Okupe described the former LP presidential candidate’s remark as an “insult” to people in the south-west.

He said Obi’s statement publicly demeaned the south-west, even though “eminent Yoruba people” had supported him during his presidential campaign in 2023.

“When Obi made that statement, it insulted us. I am a Yoruba man; I left everything and followed Obi.

“For the first time, Obasanjo left his circle of influence and deviated to support Obi,” Okupe said.

“I do not regret supporting Peter Obi. But now I cannot do it again. The reason why I did it was because we agreed that a southern president must emerge.

“I was approached that if a southern president must emerge, which zone must it come to? I said the south-east.

“If all these eminent Yoruba people supported you, why now bring us down publicly? It is wrong.”

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Lagos Muslim Cleric Bags Life Jail For Raping 14-Yr-Old Girl Inside Mosque

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Alani Rafiu, a Muslim cleric, has been sentenced to life imprisonment by an Ikeja Sexual Offences and Domestic Violence Court for raping a 14-year-old girl inside a mosque.

Justice Rahman Oshodi delivered the verdict on Monday, after finding Rafiu guilty of child defilement. The cleric was arraigned on October 28, 2021, for having sexual intercourse with the teenager, but pleaded not guilty, leading to a trial.

During the trial, the prosecution, led by B. Boye, presented three witnesses, including the victim, who testified against Rafiu. The prosecution provided compelling evidence, including the victim’s testimony and medical reports, which revealed a calculated pattern of predatory behavior by the cleric.

Justice Oshodi emphasized that Rafiu’s actions were particularly egregious due to his position of trust as a religious instructor and family friend.

The judge stated that the gravity of the offence could not be overstated, as Rafiu exploited the victim’s vulnerability and betrayed the trust placed in him.

“The gravity of your offence cannot be overstated. You betrayed the trust placed in you as a religious instructor and family friend.

“Instead of nurturing and protecting a vulnerable 14-year-old child entrusted to your spiritual care, you repeatedly sexually abused her in a place of worship.

“This conduct is criminal and represents a profound violation of secular and religious principles,” he said.

Oshodi further held that the evidence revealed a calculated pattern of predatory behaviour, as the convict deliberately isolated the child, exploited her vulnerability, and bought her silence with money.

“The evidence revealed a calculated pattern of predatory behaviour. You deliberately isolated the child, exploited her vulnerability, and bought her silence with money.

“The physical and psychological trauma inflicted on this young girl is immeasurable. At an age when she should have been focused on her education and development, she was subjected to experiences that no child should endure,” the judge held.

Oshodi also stated that having carefully considered all the evidence before the court, there was compelling and consistent proof establishing that the prosecutrix was indeed a child below the age of 18 years at the time of the alleged offence in May 2021.

He said the evidence manifested through multiple sources.

Oshodi said, “When the prosecutrix testified before this court, she stated that she was 15 years old and 14 when the alleged incident occurred.

“Notably, she was still attending primary school then, explicitly saying she was in Primary 3.

“The prosecutrix’s educational level, being in Primary 3, at the time of her testimony, while not determinative of age, provides supporting circumstantial evidence consistent with her being a young teenager rather than an adult.

“The consistency of these multiple sources of evidence – the police and guardian testimony, the prosecutrix’s evidence, and circumstantial evidence – all converge to establish beyond reasonable doubt that the prosecutrix was 14 years old at the time of the alleged offence in May 2021.

“The defence led no evidence to contradict these age-related facts, nor was the prosecutrix’s age challenged during cross-examination of any of the prosecution witnesses”.

The judge said the prosecutrix provided a detailed, firsthand account of sexual intercourse with the convict.

“Her testimony was specific. She offered a detailed sequential account of the sexual assault. She testified that at the mosque (where the convict, whom she referred to as Alfa), isolated her. He would then lock the door, remove her underwear, and instruct her to lie on the floor.

“She explicitly stated that Rafiu would then insert his penis into her vagina. When asked about frequency, she confirmed this occurred three times.

“She further testified that these acts would result in bleeding, which the convict would have her clean with a handkerchief. Afterwards, he would instruct her to put her underwear back on before taking her outside,” he said.

According to Oshodi, this testimony provides a direct account of penile-vaginal penetration, with specific details about the sequence of events, location, frequency, and aftermath of the sexual acts.

“The prosecutrix maintained during cross-examination that this occurred three times, explicitly stating, “He had sex with me three times.”

The judge noted that the prosecutrix testimony remained consistent even when challenged about the timeframe, clarifying that these incidents occurred.

He said the medical evidence further strengthened the evidence of sexual intercourse. It reports that the transection found in the prosecutrix’s vagina was “consistent with forceful penetrative injury to the [prosecutrix’s] anus and vagina”.

Before passing down the verdict, Oshodi said, “What makes your conduct particularly egregious is your abuse of religious authority and the sacred space of a mosque to perpetrate these violations.

“Places of worship should be sanctuaries of safety and spiritual growth, not venues for the exploitation of children.

“The medical evidence and the prosecutrix’s testimony paint a disturbing picture of the physical harm you caused.

The bleeding she experienced and your callous provision of a handkerchief to clean up the evidence of your abuse demonstrate a shocking disregard for her well-being.

“This court must protect children from sexual predators and send a clear message that such conduct will be met with the full force of the law.

“The sentence must reflect society’s abhorrence of child sexual abuse and serve as a deterrent to others who might contemplate similar crimes.

“Therefore, I now sentence you to life imprisonment by section 137 of the Criminal Law. Furthermore, under sections 33 and 38 of the Lagos State Domestic and Sexual Violence Agency Law, 2021, I order that you be registered as a sex offender in the Sex Offenders Register maintained by the Lagos State Government,” he held.

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BIG STORY

UPDATE: Minors Freed As Court Strikes Out Suit Against 119 #EndBadGovernance Protesters

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A federal high court in Abuja has struck out the suit against 119 protesters charged over the nationwide #EndBadGovernance protest.

Obiora Egwuatu, the presiding judge, dismissed the case following an application by M.D. Abubakar, counsel to the Attorney-General of the Federation (AGF).

Abubakar had requested permission to take over and discontinue the suit.

During the session on Tuesday, Abubakar asked the court to allow the AGF to take over the charge.

This development comes just hours after President Bola Tinubu directed the attorney-general and law enforcement to release all minors detained over the protest.

As of the time of reporting, all the minors have been freed.

 

More to come…

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