By Peace Udugba
Wema Bank Plc has dismissed as false and misleading recent media reports allegedly published by the Nigeria Deposit Insurance Corporation (NDIC) concerning the sale of certain Banana Island properties connected to the defunct Gulf Bank Plc.
In a statement issued by the bank, Wema Bank described the allegations as “malicious, inaccurate and wholly unsubstantiated,” insisting that the publication was intended to distort the true facts surrounding legacy transactions involving the defunct bank.
According to Wema Bank, the issue dates back to 2002 when it made an inter-bank placement of ₦4.6 billion with Gulf Bank Plc. The bank stated that by August 2004, the exposure had reduced to approximately ₦1.2 billion before the outstanding obligation became delinquent.
The bank explained that in an effort to recover depositors’ and shareholders’ funds, it initiated lawful recovery processes, which later aligned with a criminal investigation involving the former Managing Director of Gulf Bank Plc by the Economic and Financial Crimes Commission (EFCC).
Wema Bank said EFCC investigations revealed that the funds were allegedly diverted and used to acquire properties in Banana Island, Lagos, through two companies — Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Ltd.
The bank stressed that both companies were separate entities from Gulf Bank Plc and were not under NDIC supervision.
According to the statement, following the EFCC investigation and asset-tracing exercise, the two companies voluntarily relinquished their proprietary interests in the Banana Island properties to facilitate the settlement of Gulf Bank’s indebtedness to Wema Bank.
Wema Bank further disclosed that the NDIC formally acknowledged Gulf Bank’s indebtedness through letters dated September 26, 2007, addressed to the Federal Land Registry, and June 10, 2009, addressed directly to Wema Bank.
The bank noted that the letters, which were reportedly frontloaded in court by NDIC’s counsel, Dr. Dada Awosika (SAN), constituted formal recognition of Wema Bank’s claim and interest over the properties.
The lender also stated that after the sale of the properties, the NDIC paid the outstanding shortfall owed to Wema Bank, a move it said demonstrated the corporation’s awareness and participation in resolving the debt.
Wema Bank argued that, given the voluntary relinquishment of the properties, NDIC’s formal acknowledgment of the debt, and its subsequent payment of the outstanding balance, the corporation could not now challenge the legitimacy of the bank’s recovery efforts.
The bank, however, confirmed that the NDIC has instituted two separate suits against it at the Federal High Court in Lagos in its capacity as liquidator of Gulf Bank Plc.
While noting that the matters are currently before the court, Wema Bank said it would refrain from making further comments because the issues are sub judice.
The bank assured stakeholders that it would continue to defend its rights through lawful means while maintaining its commitment to corporate governance, transparency, and regulatory compliance.
