Court orders arrest of Bank CEO, top officials over loan schemes

By Vivian Onyebukwa

A team of security agencies allegedly stormed the headquarters of a new generation Bank to execute a bench warrant issued by the Lagos High Court for the arrest of the bank’s CEO and Managing Director and other senior officials.

The  order came after the accused allegedly failed to appear in court as ordered in relation to a case involving charges of alleged conspiracy, stealing, and attempted theft.

The charges stem from a loan agreement in which Balmoral International  received a N333 million loan from the bank which the bank acquired. As part of the loan conditions, MOB Integrated Services Limited  alleged to have offered their property at 40B Bourdillion Road, Ikoyi as collateral. However, without the knowledge or consent of MOB Integrated Services, the Bank allegedly continued to provide additional facilities to Balmoral International, ultimately including the property as collateral for a separate, unrelated N1 billion credit facility. 

This led to legal actions, and when the  Bank and its officials allegedly failed to appear in court for the January 20 arraignment, the court issued a Bench Warrant for the arrest and production in court the bank’s CEO and MD and other senior officials on the next adjournment date and on every other subsequent date until otherwise directed by the court.

This led to police operation at the Bank’s headquarters. The police, led by an Assistant Commissioner of Police, reportedly arrived at the bank’s headquarters, Victoria Island, Lagos, at noon on February 5, 2025, but were told that the CEO was in a meeting, and the Company Secretary was in London. After engaging with the bank’s legal officers, the police were assured that the defendants would appear at the next scheduled hearing, set for February 24, 2025.

The case, LD/24884C/2024 – The State of Lagos v. Adejare Adegbenro & Ors, is set for arraignment on February 24, 2025, as prosecutors continue to investigate the dealings.