Wema Bank Plc has dismissed recent media reports alleging wrongdoing in the sale of Banana Island properties connected to the defunct Gulf Bank Plc, describing the claims as false, misleading, and entirely unsubstantiated.
In a statement issued to stakeholders, the bank said the reports were malicious and intended to distort facts surrounding a long-standing debt recovery process dating back more than two decades.
Property Details
According to Wema Bank, it placed ₦4.6 billion with Gulf Bank in 2002 as an inter-bank deposit. By August 2004, the exposure had been reduced to approximately ₦1.2 billion, after which the remaining balance became delinquent.
The bank said it subsequently initiated lawful recovery actions to protect depositors’ and shareholders’ funds, a process that led to an investigation by the Economic and Financial Crimes Commission (EFCC).
The investigation reportedly found that funds were diverted and used to acquire properties in Banana Island, Lagos, through two companies: Supra Commercial Trust Limited and Euston Wenberg Eng Ltd.
Wema Bank stressed that both entities are legally distinct from Gulf Bank and are not subject to the supervision of the Nigeria Deposit Insurance Corporation (NDIC).
The bank said the two companies voluntarily relinquished their interests in the Banana Island properties to settle Gulf Bank’s indebtedness. Wema described the move as a lawful part of its debt recovery efforts.
NDIC’s Recognition of the Debt
Wema Bank stated that NDIC formally acknowledged Gulf Bank’s indebtedness in two letters dated September 26, 2007, and June 10, 2009.
According to the bank, these documents confirm the validity of its claim and have been submitted by NDIC’s counsel, Dada Awosika, in ongoing proceedings before the Federal High Court in Lagos.
The bank further disclosed that NDIC paid the shortfall remaining after the sale of the properties, arguing that this demonstrates the corporation’s awareness of and participation in the settlement process.
Ongoing Court Cases
Wema Bank acknowledged that NDIC has recently filed two separate suits against the bank at the Federal High Court in Lagos in its capacity as liquidator of Gulf Bank.
However, the lender said the new legal actions do not alter the material facts of the case and maintained that NDIC is precluded from challenging the earlier relinquishment of the properties and the bank’s recovery efforts.
“As these matters are currently before the court and therefore sub judice, Wema Bank will refrain from commenting further,” the statement said.
The bank added that it is taking all necessary legal steps to defend its position and protect its interests.
