Wema Bank rejects NDIC claims over Banana Island properties

By Philippine Duru

email: obetophilippineduru@gmail.com

Mobile: 08034905774

Wema Bank has dismissed allegations by the Nigeria Deposit Insurance Corporation over the sale of Banana Island properties allegedly linked to the defunct Gulf Bank Plc, describing the claims as “false, misleading, and wholly unsubstantiated.”

In a statement issued on Friday, the bank said reports surrounding the disputed transactions were “inaccurate, malicious, and clearly intended to distort the true position.”

According to Wema Bank, the dispute originated from an interbank placement of N4.6 billion made to Gulf Bank in 2002. The lender said the amount was reduced to about N1.2 billion by August 2004 before the outstanding balance became delinquent.

The bank explained that it subsequently began recovery efforts, which later formed part of a criminal investigation by the Economic and Financial Crimes Commission involving the former Managing Director of Gulf Bank.

Wema Bank said EFCC investigations revealed that the diverted funds were used to acquire properties in Banana Island through two companies — Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Ltd.

The bank maintained that the two companies were separate entities from Gulf Bank and were not under the supervision of the NDIC.

“It is important to note that neither Bacad Finance & Investment Company Ltd (nor its successor, Supra Commercial Trust Limited) nor Euston Wenberg Eng Ltd is one and the same as Gulf Bank Plc,” the statement said.

Wema Bank further stated that the two firms voluntarily relinquished their interests in the Banana Island properties as part of efforts to settle Gulf Bank’s indebtedness.

The lender also claimed that the NDIC formally acknowledged the debt in letters dated September 26, 2007, and June 10, 2009, addressed respectively to the Federal Land Registry and Wema Bank.

“These letters constitute clear and formal recognition by the NDIC of the validity of Wema Bank’s claim against the defunct Gulf Bank and its interest over the property in question,” the bank said.

According to the bank, the NDIC later paid the outstanding shortfall after the properties were sold.

“These facts demonstrate that the NDIC was not only aware of the transaction but actively participated in settling the outstanding balance following the sale,” it added.

Wema Bank argued that the NDIC could not “in good faith contest the relinquishment of those interests or the appropriateness of Wema Bank’s recovery efforts,” given the alleged relinquishment of the properties, acknowledgment of the debt, and payment of the shortfall.

The bank confirmed that the NDIC, acting as liquidator of Gulf Bank, had instituted two separate suits against it at the Federal High Court in Lagos.

However, Wema Bank said it would refrain from further comments because the matters were already before the court.

“As these matters are currently before the court and therefore sub judice, Wema Bank will refrain from commenting further on issues that fall for judicial determination,” the statement said.

The bank added that it would pursue “all legal and legitimate means to protect its rights and interests.”

Wema Bank also reaffirmed its commitment to corporate governance, regulatory compliance and transparency, assuring stakeholders that it would continue to operate lawfully and responsibly.