By By Muminat Ajide
The dispute between Femi Otedola, a billionaire businessman, and Jim Ovia, chairman of Zenith Bank, over an alleged multibillion naira fraud, has escalated.
Otedola has accused Ovia of illicitly utilizing the Zenith Bank account belonging to his company, Seaforce Shipping Limited, for trading in 2011 without his knowledge or consent.
Despite ongoing investigations by the Force Criminal Investigation Department (FCID) of the police, efforts to reach an amicable resolution are underway.
Otedola’s petition to the police revealed that Seaforce Shipping’s account, inactive since 2010, was still being used for trading, unbeknownst to him. Despite Otedola’s assertion that Seaforce never sought nor received a loan from Zenith Bank, unauthorized trading worth billions of naira persisted. Zenith Bank reportedly failed to furnish requested documentation, including loan offer letters, to substantiate the purported loans.
Otedola became aware of the suspicious activities only recently, 13 years after the transactions, following a tip-off by a whistleblower within Zenith Bank. Upon confronting Zenith Bank officials, they issued apologies. Otedola presented a letter dated March 19, 2018, from Zenith Bank to Seaforce’s auditors, indicating a debt of only N2,278,420 on the same account, contradicting the N5 billion recorded in the bank statement.
Moreover, transactions exceeding N16 billion were recorded on Seaforce’s account from 2011 to 2024. Otedola questions the source of payments that reduced the purported debt from N16,927,628,581.84 to N11,010,924,522.71, as he was unaware of these transactions. Notably, Seaforce now carries a debt of N5,916,704,059.13, with a significant portion attributed to interest charges.
A senior bank official has been questioned by the police in connection with the matter. Meanwhile, Zenon, Seaforce, Luzon Oil and Gas, Garment Care Limited, and Otedola have obtained a federal high court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System. This injunction prohibits them from trading shares or paying dividends until the hearing of the motion for an interlocutory injunction.
This is coming after Femi Otedola reportedly took legal action against Zenith Bank Plc and its Chairman, Jim Ovia, at the Federal High Court Lagos.
Allegations include unauthorized charges in Otedola’s account and the forceful seizure of his shares in Zenith Bank.
The lawsuit seeks various reliefs, including the refund of wrongfully debited amounts, the return of illegally seized shares, and unpaid dividends amounting to N88 billion. Otedola also demands accrued interest, damages of N800 million, and an injunction against further withholding or trading of Zenon Petroleum Limited’s shares.
Despite attempts at an out-of-court settlement, Zenon Petroleum remains adamant, preferring a judicial resolution due to concerns over Zenith Bank’s history of unauthorized account tampering.
