I did not take loan from Bank PHB -Pat Utomi

Renowned political economist, Prof. Pat Utomi, yesterday told a Lagos High Court, Ikeja he did not obtain any loan from the defunct Bank PHB to fund his presidential campaign between 2006 and 2007.

Utomi, who contested the 2007 presidential election on the platform of the African Democratic Party (ADP), told the court presided over by Justice Lateefat Okunnu that he spent about N30 million on the campaign.

He made the clarification when being cross-examined by the counsel to the Economic and Financial Crimes Commission (EFCC), Mr. Kemi Pinheiro, in a matter brought against the bank’s former Managing Director, Mr. Francis Atuche.

He said his presidential campaign did not gulp N2 billion as alleged by the prosecutor, Mr. Pinheiro.
Pinheiro alleged that Utomi’s campaign was funded by the bank when cross-examining him as the defence witness.

The EFCC sued Atuche, his wife, Elizabeth and the bank’s former chief operating officer, Ugo Anyanwu, for alleged theft of the bank’s N27.5 billion.

Counsel to the EFCC Mr. Pinheiro alleged that the bank advanced a N2 billion credit facility to Baywood Continental Limited, a company whose board was chaired by Utomi.

He claimed that the loan was secured from Bank PHB about the same time Utomi was going round the country soliciting votes from Nigerians for his presidential ambition.

But Utomi, a former chairman of Bank PHB Corporate Governance Committee, denied the allegation, saying Baywood Continental never collected any loan from the bank.

He said the company was only indebted to Spring Bank Plc long before he became the chairman of the company and the eventual acquisition of Spring Bank by Bank PHB.

According to Utomi, it was public knowledge that he never exceeded N30 million during his campaign.
He said it would amount to a misconception if the indebtedness of Baywood to Spring Bank Plc, before its acquisition by Bank PHB, could be linked to his presidential campaign.

The renowned economist also reiterated his earlier views made before the court that Bank PHB was stolen from the owners by the powers that be.

He said bank loans could be domiciled in neighbour banks pending when they could be expended on the purpose of the credit facility.

The Nation