Professor M.b. Ajakaiye & Anor V. Federal Republic Of Nigeria (2010)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

I. M. M. SAULAWA, J.C.A (Delivering the Leading Judgment)

This is an appeal against the ruling of the Federal High Court, Lagos judicial Division which was delivered on 27th November, 2000 by D. O. Abutu, J in charge No FHC/L/FBCR/17/99, regarding the parties herein, The facts and circumstances surrounding the appeal could be briefly stated as follows:-

The 1st Appellant was the erstwhile Managing Director of the Nigerian Agricultural and Cooperative Bank Limited (NACB) and Chairman of the Board of Nigerian Agricultural & Cooperative Bank Consultancy And Finance Company Limited (NACB-CFC). The 2nd Appellant was the General Manager of NACB-CFC.

The Appellants and two others were sometime in 1994 arrested and investigated for various offences committed against the Failed Banks (Recovery of Debts) And Financial Malpractices in Banks, Decree No 18 of 1994. However, in the course of their detention, the Appellants and others filed an application in suit No M/492/98 upon the prerogative writ of Habeas corpus Ad subjiciendum at the Lagos High Court. They were accordingly released by the said court, but neither discharged nor acquitted.

The two Appellants were later arraigned before the Federal High Court, Lagos, on a 7 counts charge, No FHC/L/FBCR/17/99, thus:-

“COUNT 1

That you Professor Michael Babatunde Ajakaiye (m) being the Managing Director of the Nigerian Agricultural & Cooperative Bank Limited (NACB) and Chairman of the Board of Nigerian Agricultural & Co-operative Bank Consultancy and Finance Limited (NACB-CFC), Alhaji Muhammed Gidada Bakari (m) being the Executive Director Finance of NACB and a member of the Board of NACB-CFC, David Olufemi Adelana (m) being the General-Manager of NACB-CFC and Alhaji Garuba Bature (m) being a Civil Servant with the Kaduna State Urban Property Development Authority (KASUPDA) between the 2nd day of December, 1991 and 18th day of February, 1993 at Kaduna within the jurisdiction of the Tribunal conspired together to engage in illegal acts to wit: granting unautharized and unsecured loons to Alhaji Garuba Bature and thereby committed on offence contrary to Section 96 and punishable under Section 97 of the Penal Code Cap 89 Laws of the Northern Nigeria 1963 read together with Section 3(1)(d) of the Failed Banks (Recovery of Debts) Decree No. 18 of 1994 (as amended).

COUNT 2

That you, Professor Michael Babatunde Ajakaiye (m) being the Managing Director of the Nigeria Agricultural & Cooperative Bank Limited (NACB)and Chairman of the Board of Directors of the Nigerian Agricultural & Co-operative Bank Consultancy and Finance Limited (NACB-DFC) Alhaji Muhammed Gidado Bakare (m) being the Executive Director of Finance of the NACB and a member of the Board of Directors of NACB-CFC, David Olufemi Adelana (m) being the General-Manager of NACB-CFC between the 2nd day of December, 1991 and 25th day of May, 1993 at Kaduna within the jurisdiction of the Tribunal granted or connected with the grant of unautharized and unsecured loans to Alhaji Garuba Bature to the tune of N148,854.557.60 (one hundred and forty eight million, eight hundred and fifty four thousand, five hundred and fifty seven Naira, sixty kobo only) interest inclusive in contravention of the Central Bank of Nigeria Monetary Policy Guidelines and Directives, contrary to Section 58(2)(a) and punishable under Section 58(3) of the Banks and other Financial Institutions Decree No. 25 of 1991 (as amended) read in conjunction with Section 3(1)(d) of Decree 18 of 1994 (as amended).

COUNT 3

That you David Olufemi Adelana (m) between 1991 and 1993 at NACB-CFC Limited, Kaduna within the jurisdiction of the Tribunal being the General Manager of NACB-CFC Limited granted a loan of N2,626,756.26 (two million, six hundred and twenty six thousand, seven hundred and fifty six Naira, twenty six Kobo only) interest inclusive to Regal Quality Limited, a company in which you have a personal interest without disclosing it to Board of Directors of NACB-CFC in breach of the Central Bank of Nigeria Monetary Policy Guidelines and Directives, contrary to Section 58(2)(a) and punishable under Section 58(3) of the Banks and other Financial Institutions Decree No. 25 of 1991 (as amended) and read together with section 3(1)(d) of Decree No. 18 of 1994 (as amended).

COUNT 4

That you David Olufemi Adelana (m) being the General Manager of NACI3-CFC Limited on or about the 16th day of May, 1993 at NACB-CFC Office, Kaduna within the jurisdiction of the Tribunal with intent to defraud forged a resolution purporting that it to be a resolution adopted by the Board of Directors of NAC8-CFC Limited and thereby committed an offence contrary to Section 362 and punishable under Section 364 of the Penal Code Cop 89 Lows of Northern Nigeria 1963 read in conjunction with Section 3(l)(d) of Decree 18 of 1994 (as amended).

COUNT 5