AFEX: GTBank Drags 60 Bank Chiefs to Court over N17bn Debt
Guaranty Trust Bank, GTBank, has dragged 60 top executives of 13 commercial banks to court over a N17 billion Anchor Borrowers Programme (ABP) debt. The affected persons include chairmen, chief executive officers, directors, and company secretaries of the 13 banks.
They are facing contempt proceedings for allegedly failing to implement a no-debit order reportedly placed on the accounts of Afex Commodity Exchange with the banks. GTBank and Afex Commodity Exchange are currently locked in a legal battle over the debt. >>> N17.8bn Debt: GTBank Authorised to Seize Afex Commodities Exchange Assets
Parties cited for contempt include Access Bank, Citibank, Jaiz Bank, Union Bank, Fidelity Bank, First Bank of Nigeria Plc, First City Monument Bank, NDIC (liquidator for Heritage Bank), Polaris Bank, Stanbic IBTC Bank, Standard Chartered Bank, Taj Bank, United Bank for Africa and Zenith Bank, along with its principal officers.
In a suit no FHC/L/CS/911/2024 filed at the Federal High Court, Lagos, Justice CJ Aneke signed an order for affected persons to be committed to jail for failing to obey its May 27 ruling. >>> N17.8bn Debt: GTBank Authorised to Seize Afex Commodities Exchange Assets
The matter was adjourned to next Thursday. In the May 27 ruling, 20 banks were directed to transfer monies standing to the credit of the respondent into AFEX’s account with GTB until the N17.81 billion is repaid. The loans comprise N15.7 billion; the amount outstanding and unpaid as of April 17, 2024, and the cost of recovery and incidental expenses in the sum of N2.04 billion.
The court also granted an injunction allowing GTB to take over AFEX 16 warehouses located across seven states and sell the commodities said to have been procured with the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ loan facility.
The court had earlier in the month served contempt proceedings against AFEX and some of its principal officers, including Ayodele Balogun, Jendayi Fraser, Justin Topilow, Mobolaji Adeoye, and Koonal Ghandi. #AFEX: GTBank Drags 60 Bank Chiefs to Court over N17bn Debt
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