UBA GMD In Fresh Trouble Over N41bn Privatisation ‘Fraud’


UBA GMD is in a new problem for an alleged privatization fraud of N41bn.

Nigeria online news understands that the Senate summoned the Managing Director of the United Bank for Africa (UBA) Group, Mr. Kennedy Uzoka, to appear before him on a Naira 41 billion fraud charge associated with the liquidated Nigerian Telecommunications Limited (NITEL) .

According to the petition, it is alleged that UBA defrauded the liquidated Nigerian Telecommunications Limited (NITEL) of approximately N41 billion from the telecom company’s N42 billion liquidator fund subsequently deposited and sold to MTEL.

The bank’s GMD subpoena was a sequel to petitions sent to the upper legislative chamber by J .U Ayogu and Co, on behalf of NITEL / MTEL and referred to the Senate Committee on Ethics, Privileges and Public Petitions for further legislative action.

The chairman of the committee, Senator Ayo Akinyelure, told reporters that the group’s chief executive officer (GMD) and the bank’s chief executive officer (CEO), Mr. Kennedy Uzoka, has been summoned to appear before the committee without fail.

It is alleged that the UBA, he claimed, made unauthorized withdrawals from the accounts of liquidated telecommunications companies on four separate occasions, technically stealing N41 of the N42 billion of liquidators of the forms deposited there.

According to him, as clearly stated and explained in the petition, UBA withdrew N29 billion, N11 billion, N6.8 million, and N22 million at different times between 2006 and 2015 from accounts without relevant tickets or authorizations for that purpose..

He added that the liquidators of the firms also explained in the petition that UBA officials have been hiding under the disputed $ 685 million that they withdrew from the accounts.

Akinyelure said: “Being a committee that strictly adheres to the rules of the Senate, the litigated N685million is not part of what the UBA is being invited despite losing even before the liquidators of NITEL both in the Federal Superior Court and in the Courts of Appeal .

“The right of investigation of the Committee under article 88 of the 1999 Constitution will be exercised to the maximum on this matter because the owners of the money stolen by the UBA are dying.”

He further explained that UBA promised to provide the tickets for the withdrawal of N22.5 billion withdrawn from NITEL accounts without authorization.

His words: “A human rights attorney had submitted a petition on behalf of the liquidators and creditors of NITEL and MTEL, that if the N685m is the subject of litigation, there is a third tax and disaster account that has N169m. It was also unilaterally withdrawn by the UBA. Seven years after the recall, they did not deliver the tickets, instead they were asking the liquidators to get the tickets from the dead liquidators, which is wrong. They still had to provide the tickets.

“In another account that had N29bn, UBA also unilaterally withdrew the money from the NITEL accounts without authorization tickets. Most of NITEL’s creditors have sued the liquidators for having collected money from the UBA without paying them.

“The human rights attorney wrote on behalf of the dying creditors to the Senate for legislative interventions.

“There is another MTEL N11bn account withdrawn by the UBA and it has not been accounted for until today. Creditors don’t have money to go to court because they are already bankrupt. They sued UBA for the N685m and won in the Federal Superior Court, the Court of Appeal and the Supreme Court. To this day, they did not respect the court ruling by not paying the liquidators.

“When the Senate wrote to the UBA leadership, they responded that the matter was in court.

The Senate hereby insists that the matter is not subdued and we ask that they come before us with immediate effect.

“The Group Managing Director should come and explain how the other funds are withdrawn in court. NITEL and MTEL owe more than 41 billion naira and they should come and explain to Nigerians. “

The federal government, after many years of searching for buyers, finally sold NITEL / MTEL in July 2006 to Transcorp for $ 750 million.

Transcorp, a multinational and multi-sector conglomerate from Nigeria, was the winner in a negotiated offer, beating six other companies in the sale.

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