Jonathan’s wife, banks trade blame over funds trapped in 10 accounts

Former First Lady Patience Jonathan, some firms and groups linked to her and their bankers are engaged in a blame game over their inability to retrieve huge sums trapped in the banks in the wake of a freezing order obtained by the Economic and Financial Crimes Commission (EFCC).

Mrs. Jonathan, the firms and groups accused the banks – First Bank, Skye Bank and Diamond Bank – of withholding their funds despite an order of court vacating the freezing order. But the banks argued that the way the ex-First Lady and others sought to retrieve the trapped funds violated existing financial regulations.

The firms and groups include: Incorporated Trustees of Ariwabai Aruera Reachout Foundation, Fagmat Oil and Gas Nigeria Limited, Finchley Top Homes Limited, AM PM Global Network Limited and Magel Resort Limited.

Others are: Incorporated Trustees of Women for Change and Development Initiative Nigeria, Seagate Property Development Investment Company, Globus Integrated Services and Pluto Property and Investment Company Limited.

Although the total amount involved could not be immediately ascertained at the weekend, some documents filed before the Federal High Court, Abuja revealed the distribution of the accounts.

Mrs. Jonathan is said to own the account marked:  2022646664 with First Bank, with a balance of about $3.6million ($3,626, 273.71). Globus Integrated maintains account: 210002269 domiciled in Skye Bank.

Incorporated Trustees of Ariwabai Aruera Reachout Foundation, Fagmat Oil and Gas Nigeria Limited, Finchley Top Homes Limited, AM PM Global Network Limited and Magel Resort Limited are said to maintain accounts: 0024351569, 0026838491, 0019213687, 0026718889, 0024351590 with Diamond Bank.

Also, the Incorporated Trustees of Women for Change and Development Initiative Nigeria is said to maintain three accounts: 0035481691, 0025879578 and 0019213632 with Diamond Bank.

Mrs. Jonathan, the firms and groups are contending that the banks’ alleged refusal to release the money amounted to flouting the December 5, 2017 order of a Federal High Court in Abuja, vacating the freezing order got by the EFCC on May 30, 2017.

They subsequently initiated contempt proceedings against the banks’ heads, who they accused of disobeying the December 5, 2017 order by Justice Binta Nyako of the Federal High Court, Abuja, which was to the effect that the freezing order obtained by the EFCC on the affected accounts has lapsed.

Mrs. Jonathan, the firms and groups stated, in a supporting affidavit filed with the committal application, that they attempted to make withdrawals from the accounts after the December 5, 2017 order, but were denied access to the accounts by the banks.

They added: “The respondents/contemnors all refused to obey the court order and thus, bluntly refused to pay the applicants or allow them operate their accounts. Despite the service of the orders and Forms 48 and 49 of this court on the respondents/contemnors, they have bluntly refused to obey the orders of this honourable court.”

They prayed the court to commit the bank chiefs to prison for “the persistent and flagrant disobedience of the order of this honourable court made on the 5th of December 2017 in suit No: FHC/CS/821/2016 between Incorporated Trustees of Ariwabai Aruera Reachout Foundation and 10 others vs. EFCC.”

Dr. Adesola Adeduntan (described in the application for committal as the Group managing Director/Chief Executive Officer, First Bank); Mr. Tokunbo Abiru (Chief Executive Officer, Skye Bank) and Uzoma Dozie (Managing Director/Chief Executive Officer, Diamond Bank) have denied any wrong doing.

The bank chiefs claimed that their banks complied with the December 5, 2017 ruling unfreezing the accounts. They have also challenged the competence of the contempt proceedings.

In a counter-motion, Adeduntan challenged the competence of contempt proceedings on grounds of incompetent service. He argued that no processes in relation the proceedings were served on him personally as required by law.

The First Bank CEO denied flouting any order of the court. He stated that his bank has complied with the December 5, 2017 order and has lifted the restriction on Mrs Jonathan’s account with the bank.

In a supporting affidavit, First Bank stated that “upon confirming the authenticity of the order of court and advice from its legal department, the bank forthwith complied with the order of court by defreezing the account on 16th December 2017.

“This was communicated to 11th judgment creditor/respondent (Mrs. Jonathan) vide a letter dated 18th December 2017. The bank also informed the 11th judgment creditor/respondent that its management had taken a decision to close the account with it and therefore requested her to provide the details of an account into which the balance in the said account should be transferred.

“Upon receipt of the letter, the 11th judgment creditor/respondent and her counsel, Granville Abibo (SAN), vide letter dated 20th December 2017 respectively informed the bank that the 11tth judgment creditor/respondent could not provide detail of any account into which the balance in her defreezed account with the bank should be transferred and thus demanded that she should be paid in cash.

“The bank, having complied with the order of court to unfreeze the account, no longer owe the 11th judgment creditor/respondent any obligation as regard assisting her to violate the provisions of the Money Laundering Laws of Nigeria and normal banking practice of delivering foreign currency in large quantum in cash.

“In response to letters dated 20th December 2017 the bank, vide letters dated 21st December 2017 to the 11th judgment creditor/respondent and her counsel respectively, informed them of the bank’s inability to accede to their request for cash payment, but advised that a bank cheque will be issued in the name of the 11th judgment creditor/respondent for the balance in the unfreezed account if she fails to provide detail of account into which the said balance should be transferred on or before 4tth of January 2018.

“In response, the 11tth judgment creditor/respondent and her counsel respectively informed the bank that the 11tth judgment creditor/respondent does not have any account in her name where monies can be transferred and would prefer cash to be paid to her as the lodgements made into that account were done in cash.

“The 11th judgment creditor/respondent further wrote the bank on 277th December 2017 supplying three separate accounts of her counsel, telling the bank that the said sum be paid into those three named accounts of solicitors who are third parties and the balance paid to her in cash.

“In line with the bank’s letter of 21th December 2017, upon the failure of the 11th judgment creditor/respondent and her counsel to provide any account detail in her name to transfer the funds in her unfreezed account, the bank on 17th January 2018 issued, in her name, a bank cheque no: 014602 in the sum of $3,626,273.71 representing the total balance in her account with the bank, less applicable charges.

“Further to the above, the bank also informed the 11th judgment creditor/respondent and her counsel vide letters dated 17th January 2018 to visit a designated office of the bank in Abuja to pick up the cheque. The 11th judgment creditor/respondent refused to collect the letter, but her counsel received his own copy,” the bank said.

Meanwhile, Mrs. Jonathan, the firms and groups have taken steps to frustrate a renewed move by the EFCC to have the accounts frozen again. They have challenged the competence a fresh motion filed by the EFCC to that effect.

They urged the court to strike it out for not only being incompetent, but constitution an abuse of court process. They noted that the EFCC has among others, filed similar application before the Lagos division of the Federal High Court.

When the two cases marked: FHC/ABJ/CS/821/2016 and FHC/ABJ/CS/1207/2017 came up last Friday, the court could not take any of the pending application because the EFCC was not represented.

Justice Nyako noted that the EFCC was served with a hearing notice just the previous day, which the judge said was insufficient.

Following agreement by lawyers in the cases, including Mike Ozekhome, SAN, (for Mrs. Jonathan), Justice Nyako adjourned further proceedings to April 11.