EMPIRE OF DEBT: OBA OTUDEKO’S HONEYWELL COMPANY OWES FIRST BANK N70 BILLION USING HIS POSITION AS BOARD CHAIRMAN

The sweet simplicity of the steep per cents attains bitterness and an unparalleled form of ugliness in the currency-activated halls and offices of Nigerian banks even as you read.

About seven years after he retired as chairman of First Bank of Nigeria Ltd, echoes of Oba Otudeko’s reign still reverberate rancorously. While the premier banking institution still wears a facade of glee and grace and sturdiness, sources say it is heaving and caving under a heavy yoke of colossal insider debts.

Otudeko, a billionaire philanthropist and chairman of multi-faceted Honeywell Group, is reportedly indebted to the bank to the tune of about N75billion. Alas, the loan is non-performing. Neither are there indices that the loan would perform anytime soon in view of the current economic headwinds. This has thrown many customers privy to the unwholesome transactions into a vortex of turmoil.

Not surprisingly, a human rights group, the Social and Economic Rights Derivatives Centre, recently sent a strongly-worded petition to various governmental agencies and the National Assembly asking the management of the bank to explain how a number of multi-billion naira loans is not reflecting on the bank’s books again. Specifically, the group called for the investigation of Otudeko for allegedly obtaining a N29 billion facility from the bank through FBN Trustees, which it claimed was written off without the knowledge and consent of the bank’s shareholders.

Like a midwife with a rich history of stillbirths, Otudeko is a serial entrepreneur with understandable exposure to bank loans. As he frantically tries to extricate himself from this web, the bank’s customers are wondering how it would end considering that he is still in court with Ecobank over an alleged N5.5billion loan availed Honeywell Flour Mills Plc, Siloam Global Services Limited and Anchorage Leisures Limited, which he personally guaranteed. So disgruntled was the bank that it sought a receiving order against Otudeko’s estate, funds, investment and shares in Honeywell Group, Honeywell Flour Mills, among other companies, as well as an order declaring him bankrupt.

The contention by many customers of First Bank now is that Otudeko’s subsisting relationship with the bank is doing it more harm than good. But what can the poor mortals do? Not only does Otudeko currently serve as chairman of FBN Holdings, one of his sons, Obafemi, is a non executive director in the bank. So Long…

A serial defaulter of agreement, Otudeko companies is yet to pay the N3.5 billion “bullet payment” it owes Ecobank.

One of his companies, Pivot Engineering Limited based in Ikeja Manager was arrested this year by Federal Inland Revenue Service (FIRS) for owing N610 million and not remitting same to the agency as tax.

Source: Capital, with additional report from Secret Reporters

 

GODFATHER OF LOOTERS: DELTA PDP CHAIRMAN ESISO POCKETS N15 MILLION MONTHLY FROM DESOPADEC ACCOUNT DESPITE BOARD INABIITY TO PAY CONTRACTORS

Secret Reporters

One of the richest State Party Chairmen in Nigeria is Kingsley Esiso, the numero uno of the Delta State Peoples Democratic Party (PDP), sources within the party revealed recently to Secret Reporters.

The smooth talking Esiso according to insider sources is a godfather when it comes to siphoning money without notice by the media and interested parties, as he gives the impression that he’s suffering while leading the party.

He is currently building a multi million Naira terrace duplex in Sapele with state of the arts facilities imported from overseas to decorate the entire apartment in what party members who spoke to us described as “spending lavishly money not worked for”. The mansion located in a street named after him is the most expensive in the area, and stands tower tall above all.

We gathered exclusively that Esiso runs away every month with N15 million from the Delta State Oil Producing Area Development Commission (DESOPADEC) as money to run the party. This is apart from the 5% paid by every political appointee every month to the party, which runs over N20 million monthly as well as other financial perks from the Governor’s Office and senior politicians.

The total cost to run the party, which include salaries for those working in the party secretariat, wages and overhead cost is N6 million monthly, leading to the question of where the balance of the remaining money goes.

GANG OF RAIDERS: NWAOBOSHI BRIBES GOV. OKOWA’S ATTORNEY GENERAL MRAKPOR AND WIFE WITH N100 MILLION TO JOIN SUIT AND HELP HIM RECOVER GUINEA HOUSE

Secret Reporters

The battle by the Senator representing Delta North, Mr Peter Nwaoboshi is getting messier as information gathered by this newspaper reveals that the embattled Senator has secured the state government approval but through the backdoor to help him recover Guinea House which is under seal by the Economic and Financial Crimes Commission (EFCC).

According to our insider sources, Nwaoboshi approached the State Attorney General and Commissioner for Justice, Mr Peter Mrakpor and his wife and allegedly enticed them with the sum of N100 million with more promise of contracts from NDDC which he oversees in the Senate if they stand by him to get back his house.

The plot we gathered is for Mrakpor to tell the Judge handling the case in Asaba that the property was not undervalued and sold legally to the Senator. They have also planned to tell the judge to hands off the case since it’s a state property and not a Federal property.

The 60 years old Senator last week wasted over N70 million just to celebrate his new age where he invited his co-senators to the lavish ceremony with ladies imported from nearby tertiary institutions to have fun with. His wife was not seen near him during the event as he allegedly instructed her not to be seen in public.

The Attorney General didn’t pick his calls when Secret Reporters reached out to him for clarity on the bribe allegations.