BrandSpur learns as cited by TheCable, that the dispute between billionaire businessman Femi Otedola and Zenith Bank chairman Jim Ovia regarding an alleged multimillion naira scam has deteriorated.
Otedola had claimed that Zenith Bank had traded on his company Seaforce Shipping Limited’s account illegally in 2011 without getting his permission or knowledge. The police’s Force Criminal Investigation Department (FCID) is looking into these and other allegations, but efforts are being made to find a peaceful solution.
Ovia and Zenith Bank have been contacted by the local news for comments.
UNAUTHORISED TRANSACTIONS
According to Otedola’s police appeal, Seaforce Shipping’s account was utilised for trading even though it had not been used since 2010. Otedola was unaware of this at all.
Despite Otedola’s claim that Seaforce never asked for or accepted a loan from Zenith Bank, the account continued to experience unauthorised trading worth billions of naira.
According to local brand news reports, Zenith Bank neglected to produce the necessary paperwork when requested, including offer letters to bolster the approval of the aforementioned loans. It was only 13 years after the transactions that Otedola learned of the questionable activity, thanks to a tip from a Zenith Bank whistleblower.
BrandSpur discovered that Zenith Bank representatives apologised when he confronted them. Otedola submitted a letter from Zenith Bank dated March 19, 2018, addressed to Shofolawe-Bakare & Co, Seaforce’s auditors, in which the bank stated that there was only N2,278,420 in debt on the same account, as opposed to the N5 billion shown in the bank statement that the local brand news accessed.
Continuing, strangely, the bank statement on the day the letter was prepared revealed a debt of N2.9 billion, as opposed to the N2 million mentioned in the letter signed by Edwin Kind Olie, the group head of telecom, and Taofik Bashir, the internal audit control.
Between 2011 and 2024, transactions totaling more than N16 billion were made on Seaforce’s account. Since he was unaware of the transactions, Otedola questioned who had made the payments to lower the alleged debt from N16,927,628,581.84 to N11,010,924,522.71.
Credits were received on April 18, 2011, N77,169,375.00; December 01, 2011; December 08, 2011; December 15, 2011; and December 12, 2011; N119,822,762.50; N316,537,329.30; and N444,304,524.50.
This has left Seaforce with a debt of N5,916,704,059.13, of which interest expenses make up a large portion. The authorities have already questioned a top bank officer.
Furthering, a federal high court injunction prohibiting Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System from trading shares or disbursing dividends has been obtained by Zenon, Seaforce, Luzon Oil and Gas, Garment Care Limited, and Otedola.
This injunction is in effect until the move on notice for an interlocutory injunction is heard.
