Algrain Foods MD denies receiving loan from FCMB

Algrain Foods MD denies receiving loan from Nigerian bank

The Chairman/Chief Executive Officer of Algrain Foods Limited, Chief Anthony Obidulu, maintained his stand before a Lagos High Court sitting in Osborne that First City Monument Bank, FCMB, never advanced any loan to him.

Rather, the money in question was the one hundred million naira (N100 million) Small and Medium Enterprises Credit Guarantee Scheme facility granted to his company by the Federal Government in which FCMB acted as an agent as required by the guidelines issued by CBN.

He also told the court presided over by Honourable Justice (Dr.)R.O Olukolu while being led in evidence by his counsel, Chief Aloy C. Ezenduka, that the money in contention was not just dropped into his accounts, but was paid upon request.

Algrain Foods Limited and its Chief Executive Officer, Anthony Obidulu, had sued the Bank and the Receiver Mr . Emmanuel Adeyeye, Oyebanji, SAN before the Court, claiming among others that the Receiver committed acts of trespass to Chief Obidulu’s property which is not part of the All Assets Debenture (Plant & Machinery) pledged to the bank to secure the facility as provided in the CBN guidelines and that the Court should appoint independent auditors, and grant the sum of N20 billion against the Bank.

The defendants are First City Monument Bank Plc and Mr. Emmanuel Adeyeye Oyebanji as 1st and 2nd defendants respectively.

He further told the court that he had been denied access to his premises since the dispute occurred. According to Obidulu “there is a difference between his personal property and the property of the company, saying that it is only the plant and machinery that belongs to the company. He maintained that if they need the document, they can always ask the bank.

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