An Executive Director of the former Bank PHB, Pat Utomi, on Wednesday, said that the bank’s Managing Director, Francis Atuche, was a victim of injustice.
Utomi stated this while testifying at the trial of Atuche and his wife, Elizabeth, before Justice Lateefat Okunnu of an Ikeja High Court.
They were charged to court by the Economic and Financial Crimes Commission (EFCC) for allegedly stealing N25.7 billion belonging to Bank PHB (now Keystone Bank).
Utomi, who was led in evidence by Atuche’s counsel, Anthony Idigbe (SAN), said he was a member of Bank PHB Board of Directors whilst Atuche was heading the bank.
He told the court that the prosecution of Atuche was instigated by the greed of some public officials to take over Bank PHB.
According to him, the bank’s fixed assets had grown from N25 billion in 2004 to N1 trillion in 2008, before it was forcibly taken over by the Central Bank of Nigeria (CBN) on October 2, 2009.
Utomi, who is the first defence witness, claimed Bank PHB was targeted for a takeover by the current CBN Governor, Lamido Sanusi, after his appointment.
According to him, the take-over plot was to the extent of sending petitions on minor allegations of cheque-biting against Bank PHB, to the Presidency.
He said this was further corroborated by a former presidential spokesman, Segun Adeniyi, in his book “Power, Politics and Death: A Front-Row Account of Nigeria under the Late President Yar’Adua.”
“There was a design to take over Bank PHB by some public officials,” said Utomi. “It was from that design that what has transpired since then took place. As at 2009, Bank PHB was considered as a very strong bank. The CBN even invited the bank to help in rescuing Spring Bank, which was distressed at that time.”
Utomi said approval was sought from the bank’s board and funds were injected into Spring Bank to help revive it on behalf of the CBN.
“I was told that if Atuche was removed that it will be acceptable to CBN and Bank PHB will be left intact,” he said. “The person that told me is the current CBN governor. He was a very good friend of mine until recently when these injustices were being carried out.”Utomi said Atuche, apart from being the managing director, was also the majority shareholder of the bank.
The witness said the bank consequently failed its Stress Test, following the refusal of the board to comply with Sanusi’s directive.
“The reason that I have come out now is the same reason that I came out on June 12 to protest against the annulment,” he said. “That was why I allowed myself to be beaten mercilessly by policemen because I hate injustice.”
He further told the court that Atuche, as co-owner of Bank PHB, would have been very foolish to give out loans, which could not be repaid, to any company.
The professor of economics said Bank PHB was a high growth enterprise which necessitated the taking of certain risks.
Utomi said the board trusted Atuche’s judgment in granting credits, because the bank was growing very fast under his leadership.
The matter was adjourned to September 16 for continuation of trial.
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