Moniepoint, Kuda, other bank MDs face jail threat over alleged contempt of court

Several bank managing directors in Nigeria face potential imprisonment for allegedly disobeying court orders related to a N95 million fraud case

PRO International Concept, a limited liability company, has initiated legal proceedings at the Federal High Court in Lagos, seeking to commit several bank managing directors to prison for alleged contempt of court.

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The managing directors named in the suit are: Mr. Moruf Abiola Oseni (Wema Bank Plc), Mr. Babatunde Olofin (Moniepoint Microfinance Bank), Mr. Musty Mustapha (Kuda Microfinance Bank), Mr. Henry Obiekea (Fairmoney Microfinance Bank), Mr. Chika Nwosu (Palmpay Limited), and Mr. Daudu Gotring Wuritka (Opay Digital Services Limited).

PRO International Concept alleges that these individuals willfully disobeyed court orders issued on November 21, 2024, in connection with a fraud case involving the unauthorised withdrawal of N95 million from the company’s bank account.

The company is urging the court to compel the respondents to appear and explain why they should not be jailed for defying the court’s orders.

According to an affidavit deposed to by Omotayo Adebayo, litigation manager at the law firm representing PRO International Concept, the company’s operational bank account was compromised on September 5, 2024.

PRO International Concept is urging the court to compel the respondents to appear and show cause why they should not be jailed for defying the court’s orders.

The breach allegedly resulted in the fraudulent transfer of N95 million, which was subsequently dispersed across multiple accounts in nine banks.

PRO International Concept promptly notified the relevant bank officers, who issued “Block and Recall” requests to the fraud desks of 28 financial institutions.

While the funds were temporarily frozen, the institutions required a court order to maintain the freeze beyond 72 hours.

On September 9, 2024, PRO International Concept obtained a court order from a district court in Nasarawa State to extend the freeze. The current suit was subsequently filed at the Federal High Court.

On November 21, 2024, the Federal High Court ordered the frozen funds to be reversed to PRO International Concept’s account and directed further investigations, including placing liens on the respondents’ accounts.

Despite these directives and proper service by court bailiffs, the respondents allegedly failed to comply or reverse the funds.

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Consequently, PRO International Concept has commenced contempt proceedings, seeking the immediate imprisonment of the respondents to enforce compliance and uphold the authority of the court.

Justice Chukwujekwu Aneke has scheduled the hearing of the contempt application for July 3.

Peculiar Adirika