Allegations of a multimillion naira fraud have escalated the ongoing struggle between Jim Ovia, the head of Zenith Bank, and billionaire businessman Femi Otedola.
Otedola alleges that without his knowledge or approval, Zenith Bank utilised the account of his company, Seaforce Shipping Limited, for trading activities in 2011.
The police’s Force Criminal Investigation Department (FCID) is now looking into these and other allegations, though attempts are being made to find a peaceful solution.
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According to Otedola’s police appeal, Seaforce Shipping’s account was utilised for unauthorised trading even though it had not been active since 2010.
Otedola claims that despite Seaforce never having asked for or been granted a loan from Zenith Bank, illicit trading worth billions of naira persisted on the account.
When asked, Zenith Bank allegedly neglected to produce supporting documentation, including offer letters, for the approval of these loans.
Only 13 years after the transactions, Otedola learned of these questionable activity thanks to a tip from a Zenith Bank whistleblower.
When Otedola confronted representatives of Zenith Bank, he allegedly got an apology.
In contrast to the N5 billion shown in the bank statement that TheCable was able to view, a letter dated March 19, 2018, from Zenith Bank to Shofolawe-Bakare & Co., Seaforce’s auditors, revealed a debt of only N2,278,420 on the same account.
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The bank statement on the day the letter was sent revealed a debt of N2.9 billion, however the N2 million mentioned in the letter signed by Edwin Kind Olie (group auditor) and Taofik Bashir (Grou head, telecom)
Transactions totaling over N16 billion were recorded against Seaforce’s account from 2011 to 2024.
Otedola questioned who made the payments that reduced the purported debt from N16.9 billion to N11 billion, as he was unaware of these transactions.
Significant credits included N77,169,375 on April 18, 2011, N119,822,762.50 on December 1, 2011, N316,537,329.30 on December 8, 2011, N266,361,181.73 on December 15, 2011, and N444,304,524.50 on December 12, 2011.
Seaforce now has a debt of N5,916,704,059.13, with a significant portion attributed to interest charges.
A senior official of the bank has already been questioned by the police.
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Meanwhile, Zenon, Seaforce, Luzon Oil and Gas, Garment Care Limited, and Otedola have secured a federal high court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System. This injunction restrains these entities from trading with shares or paying dividends.
The injunction will remain in place until the hearing of the motion on notice for an interlocutory injunction.
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