By Ayomide Otitoju
Wema Bank Plc has dismissed recent media reports alleging wrongdoing in the sale of Banana Island properties linked to the defunct Gulf Bank Plc, describing the claims as false, misleading, and unsubstantiated.
In a statement issued on Friday, the bank said the reports were designed to distort the facts surrounding legacy transactions involving the failed financial institution.
Wema Bank explained that it made an inter-bank placement of ₦4.6 billion with Gulf Bank in 2002. According to the bank, the exposure was reduced to about ₦1.2 billion by August 2004, after which the outstanding balance became delinquent.
The lender said it subsequently initiated lawful recovery efforts, which later aligned with investigations by the Economic and Financial Crimes Commission into the activities of the former managing director of Gulf Bank.
According to Wema Bank, EFCC investigations revealed that diverted funds were used to acquire properties in Banana Island, Lagos, through two companies — Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Ltd.
The bank stressed that the companies were separate legal entities from Gulf Bank and were not under the supervision of the Nigeria Deposit Insurance Corporation.
Wema Bank further stated that the companies voluntarily relinquished their interests in the Banana Island properties as part of efforts to settle Gulf Bank’s indebtedness to the lender.
The bank also said the NDIC formally acknowledged Gulf Bank’s indebtedness in letters dated September 26, 2007, and June 10, 2009, addressed to the Federal Land Registry and Wema Bank respectively. According to the statement, the documents were among materials filed in ongoing proceedings before Justice Allagoa of the Federal High Court in Lagos.
The lender added that NDIC later paid the shortfall outstanding after the sale of the properties, arguing that the regulator was fully aware of and involved in the transaction process.
Wema Bank maintained that the voluntary relinquishment of the properties, NDIC’s acknowledgment of the debt, and the subsequent payment of the shortfall collectively validate its recovery efforts.
The bank, however, confirmed that NDIC had initiated two separate suits against it at the Federal High Court in Lagos in its capacity as liquidator of Gulf Bank.
While declining further comments because the matters are before the court, Wema Bank said it would vigorously contest the suits and pursue all lawful means to protect its interests.
The bank reaffirmed its commitment to corporate governance, regulatory compliance, transparency, and ethical banking practices, assuring stakeholders that it would continue to act in accordance with the law while defending its rights.
