Wema Bank Plc has dismissed allegations contained in recent publications attributed to the Nigeria Deposit Insurance Corporation, NDIC regarding the sale of Banana Island properties allegedly linked to the defunct Gulf Bank Plc, describing the claims as false, misleading, and malicious.
In a statement issued by the bank, Wema Bank said the reports were aimed at distorting the facts surrounding a long-standing debt recovery process tied to an inter-bank placement transaction dating back to 2002.
According to the bank, it made an inter-bank placement of ₦4.6 billion with Gulf Bank Plc in 2002, noting that the exposure was later reduced to approximately ₦1.2 billion by August 2004 before the outstanding obligation became delinquent.
The bank explained that efforts to recover the debt led to investigations by the Economic and Financial Crimes Commission, which allegedly discovered that the funds had been diverted into the acquisition of properties in Banana Island, Lagos, through two companies — Bacad Finance & Investment Company Limited, now known as Supra Commercial Trust Limited, and Euston Wenberg Engineering Limited.
Wema Bank maintained that the two companies were separate entities from Gulf Bank Plc and were not under the supervision of the NDIC.
The lender further stated that following the EFCC investigation, both companies voluntarily relinquished their interests in the Banana Island properties toward the settlement of Gulf Bank’s indebtedness to Wema Bank.
According to the bank, the NDIC formally acknowledged the debt through letters dated September 26, 2007, addressed to the Federal Land Registry, and June 10, 2009, addressed to Wema Bank Plc.
The bank added that the letters, which it said were also tendered by NDIC’s counsel in ongoing court proceedings before the Federal High Court in Lagos, constituted formal recognition of the validity of Wema Bank’s claim.
Wema Bank also disclosed that after the sale of the properties, the NDIC allegedly paid the outstanding shortfall owed to the bank, arguing that the development demonstrated NDIC’s awareness and participation in the settlement process.
The bank noted that although the NDIC had instituted two separate suits against it at the Federal High Court in Lagos in its capacity as liquidator of Gulf Bank Plc, the pending litigation would not alter the material facts surrounding the transactions.
While stating that the matters are currently before the court, Wema Bank said it would refrain from making further comments on issues subject to judicial determination.
The bank reaffirmed its commitment to corporate governance, regulatory compliance, and ethical banking practices, assuring shareholders, customers, and stakeholders that it would continue to protect its legal rights and interests through lawful means.
