Zenith Bank in trouble over alleged inappropriate charges of N111.5bn against Imo

Uche Onwuchekwa

While the effect of Covid -19 has brought untold hardship to every sector of economy globally, Imo State Government case may be different with over N111.5 billion of its money alleged to have been fraudulently stashed away through mindless charges.

The said mindless and inappropriate charges were superintended by no other financial institution than Zenith Bank Plc.

In a bid to recover this amount that have been allegedly pillaged from the State for eight years of Rochas Okorocha’s reign as the governor of Imo State, Governor Hope Uzodinma has issued a 14 day ultimatum to Zenith Bank Plc to refund what it described as inappropriate charges totaling N111.5bn.

The amount, according to the government of Imo State should be refunded into its account within 14 days.

Recall that this seeming institutional fleece of the century against a State was discovered by the eagle eye of short lived Rt. Hon. Emeka Ihedioha eight month old administration.

Unconfirmed report had it that Uzodinma had made a deal with Zenith Bank to support his governorship project, promising chunk discount from the inappropriate accumulation. The cause of the sour turn of event can only be told by the negotiators.

Calling for the refund of said inappropriate charges was contained in a letter dated June 16 written by Uzodinma directing the bank to refund the money and addressed to the Managing Director of Zenith Bank Plc, Mr. Ebenezer Onyeagwu.

The Governor in the letter obtained by exclusively obtained by NewsTrack Nigeria (NTN) recalled that the state had issued a demand notice dated December 6, 2019, which was responded to by the bank on March 2, 2020.

Another letter was issued by the State Government on March 13 2020, comprehensively addressing issues raised in the bank’s response.

NTN garnered that as a result of break down in negotiation and inability of the parties to keep agreement, especially the bank, which failed to respond to the state’s letter dated March 13, a reminder was issued on May 27 which gave the bank up to June 3, 2020 to respond to the issues earlier raised.

According to the letter, Uzodinma stated that following the inability of Zenith Bank to respond to the reminder, it had become imperative to take steps to recover the N111.5bn inappropriate charges imposed on the state by the bank.

Uzodimma threatened that should the bank fail to refund the amount at the expiration of the notice, the state government would not hesitate to take all steps necessary to recover the funds.

The letter reads in part, “It has come to my knowledge that the bank is yet to respond to our letter of May 27, 2020 giving the bank up to June 3, 2020 to respond to our
inquiries or make payment of the above inappropriate charges totaling N111,503,601,635.61.

“It is quite unsettling that the bank has intentionally ignored the state’s several demands.

“It should equally take note that the IMSG has demonstrated an unusual desire to resolve this matter amicably, in keeping with our mutually beneficial relationship over the years.

“However, the state cannot continue to ignore the effects of COVID 19 on its economy and citizens, while the bank continues to hold such significant funds belonging to the state.

“Accordingly, you are hereby advised to pay the established liability within fourteen days from the date of receipt of this notice, in the sum N111,503,601,635.61.

“Such payment should be made to the Imo State Government. Please note that IMSG will not hesitate to take the steps necessary to recover these refunds.”

Meanwhile, the Chairman of Zenith Bank Plc, Mr Jim Ovia was copied in the Letter.

Recall that the present Obowo born House of Representatives member, Hon. Chike Okafor who was an eye of the Zenith Bank in Okorocha’s Government had literally made Zenith Bank the single banker to Imo State government under the administration under review. However the Bank at a time had a monopoly status as every other bank was carefully schemed out of things.

The corporate plunder only took place with the period of Okorocha’s reign as the governor of Imo State. Zenith Bank big story is just one of the many uncovered plunders with the can of worms being opened at the Commission of Inquiry.