wemabank.com has dismissed as false and misleading recent media reports alleging wrongdoing in the sale of certain Banana Island properties linked to the defunct Gulf Bank Plc, insisting that all actions taken were lawful and part of legitimate debt recovery efforts.
In a statement issued by the bank, Wema Bank described the allegations as “malicious, inaccurate and wholly unsubstantiated,” stressing that the reports were aimed at distorting the facts surrounding a long-standing financial transaction involving the now-defunct bank.
According to Wema Bank, the matter dates back to 2002 when it made an inter-bank placement of ₦4.6 billion with Gulf Bank Plc. By August 2004, the exposure had reduced to approximately ₦1.2 billion before the outstanding debt became delinquent.
The bank explained that in a bid to recover depositors’ and shareholders’ funds, it initiated lawful recovery measures which later aligned with investigations conducted by the Economic and Financial Crimes Commission (EFCC) into the activities of the former Managing Director of Gulf Bank.
Following investigations, the EFCC reportedly discovered that the diverted funds had been 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 Engineering Ltd.
Wema Bank clarified that both companies are legally distinct from Gulf Bank Plc and are not under the supervision of the Nigeria Deposit Insurance Corporation (NDIC).
The bank further stated that the two companies voluntarily relinquished their interests in the Banana Island properties as part of efforts to settle Gulf Bank’s indebtedness to Wema Bank, a move it described as evidence of the legitimacy of its recovery process.
Wema Bank also revealed that the NDIC formally acknowledged Gulf Bank’s indebtedness in two separate letters dated September 26, 2007, and June 10, 2009, addressed respectively to the Federal Land Registry and Wema Bank Plc.
According to the bank, the letters — which it said have already been presented before the Federal High Court in Lagos by NDIC’s counsel, Dr. Dada Awosika (SAN) — constitute formal recognition of Wema Bank’s claim and interest in the disputed properties.
The bank further disclosed that after the eventual sale of the properties, the NDIC paid the outstanding shortfall owed to Wema Bank, demonstrating its awareness and participation in resolving the debt obligation.
“In light of the voluntary relinquishment of the properties, NDIC’s formal acknowledgment of the debt, and its payment of the shortfall, the corporation cannot in good faith contest the propriety of Wema Bank’s recovery efforts,” the statement noted.
While confirming that the NDIC has filed two separate suits against the bank at the Federal High Court, Lagos, Wema Bank maintained that the ongoing legal proceedings do not alter the facts already established.
The bank said the matters are currently before the court and therefore sub judice, adding that it would refrain from making further comments on issues pending judicial determination.
Wema Bank reaffirmed its commitment to corporate governance, transparency, regulatory compliance and ethical banking practices, assuring shareholders, customers and stakeholders that it would continue to protect its rights through lawful means.
The statement was signed by Johnson Lebile, General Counsel and Legal Adviser of Wema Bank Plc.