Business mogul Femi Otedola, chairman of FBN Holdings and majority owner of Geregu Power, has accused Zenith Bank of fraud in connection with a debt involving his former company, Zenon Petroleum & Gas, and other affiliated firms.
Otedola alleges the bank manipulated his accounts, forged documents, and illegally sold his shares.
News About Nigeria reports that Otedola’s claims have triggered litigation and police investigations.
He stated that Zenith Bank’s actions included dishonest accounting practices before the bank sold his multibillion-naira debt to the Asset Management Corporation of Nigeria (AMCON).
This federal agency is tasked with purchasing non-performing loans from banks to aid recovery.
According to Premium Times, sources indicate that Otedola’s legal and police actions followed unsuccessful attempts to resolve the matter without litigation.
A May 20 meeting between technical teams from Zenith Bank and Zenon Oil ended inconclusively, as did a subsequent meeting at the Lagos Oriental Hotel.
This marked the third failed reconciliation attempt this month.
“It is clear that Zenith Bank Plc is not sincere in resolving this issue out of court and as such a time-wasting exercise,” a source close to Otedola said. “At this juncture, we have resolved to pursue our claims via the judiciary, law enforcement, the CBN, and the court of public opinion as we know that our claims are very genuine.”
Zenon alleges that letters of credit leading to the disputed loan were opened before AMCON acquired the debt in December 2011.
A company review of Zenon’s bank statements reportedly found no evidence of the loan, suggesting fraud.
In March, Otedola and his companies secured an injunction against Zenith Bank and its associates, preventing them from trading the plaintiffs’ shares or paying dividends until further court hearings.
Documents indicate that Zenon suffered significant financial losses due to the alleged unauthorised transactions, with substantial debits to its accounts.
Police investigations, prompted by a petition from Otedola, are examining alleged unauthorised debits and wrongful transactions.
A May 16 letter from the Force Criminal Investigation Department summoned Zenith Bank’s managing director for questioning.
