AKIN KUPONIYI

Stella Oduah

In a bid to frustrate the Economic and Financial Crimes Commission from probing and possibly arresting the former aviation minister  Senator Stella Oduah, over  a debt of N142 million owed Union Homes, six  directors of her  company Sea Petroleum and Gas company limited have sued the agency at a Federal high court in Lagos, south west Nigeria.

Joined as co-respondents are Union Homes Saving and Loans Plc and a Lagos lawyer Barrister Ken Ahia.

The legal action of the applicants, HUMPHREY ENECHUKWU,IFEANYI DAVIS OKOH, MAGDALENE UDUMEBRAYE IDEH, EMMANUEL NNAMDI NWAOBU, THEOPHILUS ANAEKENWA AGUGUOM, NWAKA OGEYINGBO,  was sequel to letters of invitation sent to them by the anti-graft agency for them to explain their role in  a loan taken from Union Homes Saving and loans Plc.

The mortgage company is accusing them including the former aviation minister  of diversion of the bank’s funds

In the said petition dated 6th of February 2015,the former aviation minister was alleged to be owing Union Homes Savings and Loans Plc N142 million. The mortgage bank claimed that  she has refused to repay the loan despite several concessions, even though she and her directors have the financial capacity to pay..

The  petition was jointly signed by the head of debt recovery K.M Theophilus and Consultant(special Recovery)Inam Ukotak. The petitioners urged EFCC to investigate the matter.

In an affidavit sworn to by Executive Director of Sea Petroleum and Gas company Humphrey Enechukwu, in support of the fundamental right enforcement suit filed before the court,by a Lagos Lawyer A.O Agboola, the deponent averred that, Sea Petroleum and Gas company bought numerous houses at millennium homes oniru private estate, Lekki sometime in the year 2007 in which it accommodates its senior staff including the applicants.
The houses were purchased with loans obtained in the name of the company from Union bank Plc and Union homes Saving and Loans.

Due to general economic down turn between 2008 and 2009 in Nigeria, the company was unable to service its loans obligations to Union Homes Savings and Loans and when the facility were about to be classified as bad debts which would have resulted in the applicants losing their residential apartments, In other to avoid being thrown out into the street, it was agreed between the parties that the loan be restructured.

Consequently, the loan was restructured and fresh letters of offers dated 31st of December, 2009 were issued by Union Homes savings and loans  to the applicants, no money was physically given to them as the loan were made by means of notional transfers within the account of Union Homes Savings and Loans.

Enechukwu averred further that the total amount advanced and treated as mortgage loans to the applicants and Stella Odua was the sum of N422.5 million and as of 9th of May 2014 the applicants have repaid the sum of N368 million to Union Homes Savings and Loans.

Despite the series of good faith demonstrated in  repaying the loan, on the 2nd of March, 2015, the applicants received a letter of invitation from EFCC in connection with the mortgage loan.

The allegation of diversion of fund raised by the respondent is a clever ruse by the respondents to give the contractual issue between the parties a veneer of criminality to justify using the EFCC as a debt recovery agency.
Consequently the applicants are urging the court to declare that the threat of  arrest and detention by EFCC at the behest and instigation of Union Homes Savings and Loans and Barrister Ken Ahia for the purpose of enforcing the payment of a mortgage loan alleged to have been due from the applicants is a gross violation of the applicants fundamental rights as guaranteed by the constitution of the Federal republic of Nigeria, therefore illegal and unconstitutional.

The applicants are also urging the court to restrain the respondents and their agents from arresting and detaining them in respect of any matter pertaining to their contractual obligation to Union Homes Savings and Loans limited.

However in a counter affidavit sworn to by a manager of Union Homes Savings and Loans Plc Chika Onwubuya, she averred that, the loan facilities were granted to both the applicants and to Princess Stella Oduah, a former minister of aviation who is the Managing Director and Chief Executive officer of Sea Petroleum and Gas company Limited.

She said  part of the conditions for the granting  of the loan was for Sea Petroleum to domicile the salary account of the applicants with Union Bank ,  which is a parent company of the Union Homes Savings and Loans Plc.

However, Union Homes Savings and Loans Plc later discovered that after the loan was granted to the applicants, the salary proceeds of the applicants were fraudulently diverted to other purposes thereby deceiving the mortgage bank.

Preliminary investigation also revealed that Princess Stella Oduah, who is a politician and former minister of aviation Nigeria only used the directors  as proxy to collect facilities from the Union Homes Savings and Loan Plc.

Onwubuya averred further that the applicants had frustrated Union Homes Saving and Loans plc from having access to the title documents of the property which was part of the collateral used for the facility.

When the mortgage bank observed that the salary proceed of the applicants as part of the security for the loan was diverted from purpose of repayment of the loan to other purposes, and the conduct of Stella Oduah fronting some of the applicants and using them as proxy to collect loan, thereby deceiving Union Home Savings and Loan Plc, the company petitioned EFCC to investigate the fraudulent diversion of funds by the applicants which was made for the purpose of repayment of the facility to the respondent and the conduct of Stella Odua fronting some of applicants and using them as proxy to collect loan from union homes Savings and Loans Plc.
The deponent also averred that the substantial part of the applicants outstanding sum of the loan have not been repaid till date after undertaking to do so and  therefore contented that,the applicant instituted this suit with the intention of stopping EFCC from investigating the activities of the applicants who convert to their use the Union Homes Savings and Loans Plc’s money obtained by false pretence.

In view of these scenario the respondents urged the court in the interest of justice to dismiss the suit of the applicants and allow EFCC to perform its statutory duties as it has the power to recover proceeds of fraud and return same to the owners.

In his response, Mr Ken Ahia in an affidavit sworn to on his behalf by a legal practitioner Onyedika Nwosu, contended that his law firm was instructed by Union Homes savings and Loans Plc to recover the debt owe it by the applicants and Stella Oduah as same has become due for repayment.

All the steps taken by the law firm were steps known to law as they never petitioned EFCC therefore the right of the applicants have not been infringed, consequently urged the court to dismiss the suit of the applicants.

In a counter affidavit sworn to by an EFCC operative, Olusegun Oloruntuyi, EFCC while denying the contents of the applicants affidavits in its entirely averred that a petition dated 6th February, 2015 written by Union Homes Savings Loan Plc was received by EFCC and assigned to his team to investigate.

Oloruntuyi averred further that there is no ruse and EFCC is simply carrying out its statutory duty of investigating allegations of crime and step taking so far by EFCC was to invite the applicants and the applicants have not honour the said invitation.

The suit has been adjoined for judgement.