The Federal High Court in Abuja has ordered the senator representing Anambra Central, Victor Umeh, to pay N135,722,303.40 along with accrued interest to the Asset Management Corporation of Nigeria (AMCON) over his unpaid bank loan.
Justice Inyang Ekwo issued the order in a judgment delivered on Monday in a suit filed by AMCON.
Grow your business with us
Justice Ekwo, who declared that Umeh was actually indebted to AMCON, issued an order directing the forfeiture of the senator’s 5,000,000 units of Skye Bank shares in the records of the Central Securities and Clearing System to AMCON.
The judge also awarded a cost of N2 million in favour of AMCON and against Umeh, who is currently the Chairman of the Senate Committee on Diaspora.
A court document filed by AMCON showed that Umeh got a loan of N23,250,000.00 from the now-defunct Skye Bank in January 2008 “to enable him to invest in and purchase shares of a financial institution in Nigeria.”.
The document added: “The tenor of the credit facility granted to the defendant was specifically fixed for 356 days.
“The offer letter contained various other explicit terms and conditions, which the defendant accepted by duly executing the memorandum of acceptance.
“The defendant utilised the funds granted to him as credit facility by the bank. However, at the expiration of the tenor of the facility, the defendant failed and neglected to liquidate the credit facility as per the contract.”
AMCON averred that it later acquired the unpaid debt when Skye Bank could not make Umeh repay his loan.
The corporation explained that its suit was meant to recover the debt, which stood at N135,722,303.40k as of April 2011.
In his judgment, Justice Ekwo held that despite being served with court documents on the case, Umeh failed to file any response or make any effort to enter a defence.
The judge added that, despite Umeh’s failure to file a defence, the plaintiff proved its case through the evidence it presented.
He held that by the evidence presented by the plaintiff “the indebtedness of the defendant has been proved”.
Justice Ekwo added, “I find that the plaintiff has established its case by preponderance of evidence, as required by law.
“Consequently, judgment is entered per terms as follows:
“A declaration is hereby made that the defendant is indebted to the plaintiff in the sum of N135,722,303.40, representing the principal debt sum plus all the accrued interest and charges, at the rate of 15 percent per annum drawn up to January 25, 2021, being the sum due and outstanding from the defendant to the plaintiff.
“A declaration is hereby made mandating the defendant to pay to the plaintiff the sum of N135,722,303.40, representing the principal debt sum, plus all the accrued interest and charges at the rate of 15 percent per annum drawn up to January 25, 2021, in settlement of the debt due and outstanding from the defendant to the plaintiff,” among others.