Wema Bank Plc has rejected what it described as false, misleading, and unsubstantiated allegations linked to the sale of Banana Island properties associated with the defunct Gulf Bank Plc.
In a statement issued by the bank, Wema Bank said recent media publications concerning the transaction distorted the true facts surrounding the recovery process tied to Gulf Bank’s outstanding indebtedness.
According to the bank, the issue dates back to 2002 when Wema Bank made an inter-bank placement of ₦4.6 billion with the now-defunct Gulf Bank Plc. The bank stated that by August 2004, the exposure had reduced to about ₦1.2 billion before the obligation became delinquent.
Wema Bank explained that in an effort to recover depositors’ and shareholders’ funds, it initiated lawful recovery steps that later aligned with investigations conducted by the Economic and Financial Crimes Commission.
The bank noted that EFCC investigations allegedly revealed that the 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.
Wema Bank stressed that both companies are separate entities from Gulf Bank Plc and are not under the supervision of the Nigeria Deposit Insurance Corporation.
According to the bank, the two firms voluntarily relinquished their interests in the Banana Island properties as part of efforts to settle Gulf Bank’s indebtedness to Wema Bank.
The financial institution further disclosed that NDIC formally acknowledged Gulf Bank’s indebtedness to Wema Bank in letters dated September 26, 2007, and June 10, 2009.
It added that the letters were addressed respectively to the Federal Land Registry and Wema Bank Plc, and have already been presented before the Federal High Court in Lagos as part of ongoing legal proceedings.
Wema Bank also claimed that after the sale of the properties, the NDIC paid the outstanding shortfall owed to the bank, arguing that the action demonstrated NDIC’s awareness and recognition of the transaction.
The bank maintained that the combination of the voluntary relinquishment of the properties, NDIC’s written acknowledgment of indebtedness, and payment of the shortfall validates its recovery process and weakens any attempt to challenge the transaction.
While confirming that the NDIC has instituted two separate cases against the bank at the Federal High Court in Lagos, Wema Bank said the matters are currently before the court and therefore sub judice.
The bank added that it would continue to defend its position through lawful means while refraining from further comments that could interfere with judicial proceedings.
Reaffirming its commitment to corporate governance, transparency, and regulatory compliance, Wema Bank assured shareholders, customers, and stakeholders that it remains committed to ethical banking practices and protecting its legal rights.
The statement was signed by Johnson Lebile.