Presidential Candidate Sued Over Unpaid Loan

A Federal high court sitting in Lagos, southwest Nigeria, has adjourned till 19 October a debt recovery suit instituted by Keystone Bank Plc formerly Bank PHB Plc, against the presidential candidate of African Democratic Congress Party, Professor Patrick Okedinachi Utomi and his company, UT Roads Maintenance Limited.

According to a statement of claim filed before the court by a Lagos lawyer, Barrister Oluwakemi Balogun, on behalf of the bank, it was alleged that Professor Patrick Okedinachi Utomi applied for and was granted a loan facility in the sum of N40 million to finance the completion of his property at Ilabere Avenue, Ikoyi, Lagos which was to be used for rental purposes. The tenor of the term loan facility was for 90 days from initial disbursement.

The facility was secured by an equitable mortgage on the said property and the domiciliation of the proceeds from socket works. Upon the due date for repayment the defendant could not fulfil its obligations to the bank in respect to the facility offered. Consequently, he applied for an extension of the loan granted.

However, Professor Utomi, yet by another letter dated 23 September, 2008 requested for N10 million overdraft facility, which was also granted.

UT Roads Maintenance Limited also requested for a Bridge/LPO facility in the sum of N8 million and same was granted on the 16 October, 2011 for the purpose of assisting the company in the advance payments of some items and services in preparation for seminar on road maintenance.

The said Bridge/LPO facility has long expired and the defendants failed to fulfil their obligations to the bank. The facility was secured by a personal guarantee executed by Professor Patrick O. Utomi.

Despite several demands and plea made by the bank, the defendants have refused to liquidate their indebtedness to the bank.

Consequently, the claim of keystone Bank Plc against the defendants jointly and severally are as follows, judgement in the sum of N60,690,932.20 being Professor Patrick Utomi’s indebtedness to the bank and N12,146,452.46 being the indebtedness of Professor Patrick Utomi and his company as at 30 April, 2011 with interest at the rate of 19 per cent from the date judgement is delivered in the suit till the judgement sum is liquidated.

Meanwhile, the bank has filed an application before the court, urging the court to place the suit on the undefended list as the defendants have not file any defence. During the last hearing, the counsel representing the bank told the court that the defendant have paid N5 million and that further affidavit will be deposed to reflect the payment.

The matter has been adjourned till 19 September for further hearing.