Wema Bank Plc has rejected allegations surrounding its recovery of debts linked to the defunct Gulf Bank Plc, describing recent claims tied to publications by the Nigeria Deposit Insurance Corporation (NDIC) as false, misleading, and unfounded.
In a statement issued by the bank, Wema Bank insisted that all actions taken in relation to the disputed Banana Island properties in Lagos were lawful and carried out in line with regulatory and legal procedures aimed at safeguarding depositors’ and shareholders’ funds.
The bank explained that the dispute originated in 2002 when it made an inter-bank placement with Gulf Bank Plc worth ₦4.6 billion. According to Wema Bank, the outstanding exposure had reduced to approximately ₦1.2 billion by August 2004 before the debt became delinquent.
Wema Bank stated that subsequent recovery efforts aligned with investigations by the Economic and Financial Crimes Commission (EFCC), which allegedly revealed that diverted funds were used to acquire properties in Banana Island through two companies — Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Ltd.
The bank clarified that the companies were independent entities and distinct from Gulf Bank Plc, stressing that they were not under the supervisory authority of the NDIC.
According to Wema Bank, the companies later relinquished their interests in the Banana Island properties as part of arrangements to offset Gulf Bank’s indebtedness.
The financial institution further disclosed that NDIC had acknowledged Gulf Bank’s debt in official letters dated September 26, 2007, and June 10, 2009, which were reportedly addressed to the Federal Land Registry and Wema Bank Plc respectively.
Wema Bank also claimed that the same documents were tendered in court by NDIC’s counsel, Dr. Dada Awosika (SAN), in an ongoing matter before Justice Allagoa of the Federal High Court in Lagos.
The bank added that after the disputed properties were sold, NDIC allegedly paid the outstanding shortfall owed to Wema Bank, which it argued demonstrated the corporation’s involvement and awareness of the settlement arrangement.
Based on these developments, Wema Bank maintained that NDIC could not now dispute the legitimacy of the debt recovery process, citing the relinquishment of the properties, prior acknowledgment of the debt, and payment of the outstanding balance.
The bank confirmed that NDIC, acting as liquidator of Gulf Bank Plc, has filed two separate suits against Wema Bank at the Federal High Court in Lagos. However, it noted that the matters are currently before the court and therefore sub judice.
While declining further comments on issues pending judicial determination, Wema Bank assured stakeholders that it would continue to defend its interests through lawful means.
The lender reaffirmed its commitment to corporate governance, transparency, and regulatory compliance, while assuring customers, shareholders, and regulators of its dedication to ethical banking practices.
Wema Bank also stated that it would resist attempts by what it described as “unscrupulous individuals” seeking to gain unfairly from the legacy transaction.
