MON, MARCH 11 2019-theG&BJournal-Access Bank Plc released a statement today suggesting that news reports on its dealings with BMCE International Plc tried to mislead investors by improperly and inaccurately reflecting its position on the transactions it had with Metal African Steel Products Limited, a customer Access Bank Plc granted credit facilities in 2015 to finance import billets and machinery for the expansion of its factory.
The misleading statement was published recently in online and the print media claiming that the Special Fraud Unit (SFU) of the Nigerian Police has filed charges against Access Bank Plc and its officers bordering on conspiracy and stealing of metal billets belonging to BMCE International Plc, the petitioner in the charges.
‘’We are aware that the petitioner also laid claims to the same billets following which there were attempts at settlement between the Petitioner and the Receiver/Manager. The Petitioner subsequently filed a complaint at SFU following failure of the settlement,’’ Access Bank said in its statement that highlighted facts leading to the alleged charges.
According to Access Bank Plc, in 2015, it availed credit facilities to Metal African Steel Products Limited to expand its factory. Consequently, the bank opened Form M and Letters of Credit (LC) to facilitate the importation of the billets for which the shipping documents were consigned to the bank. The facilities were secured by a Debenture Trust Deed over the customer’s asset shared with the lenders.
‘’Upon arrival of the billets, the bank released the shipping document to the customer to enable it clear the goods. The bank subsequently discovered that the customer has cleared the goods from the port without payment of appropriate Customs Duty.’’
Access Bank said that in line with its duty to protect its depositors’ fund, reported the alleged crime to the SFU which obtained a court order to take the customers’ business operation.
‘’Furthermore, the Bank petitioned Interpol which is presently taking steps to repatriate the suspects involved in the alleged fraud from India. Subsequently, the beneficiary banks including Access Bank Plc under the Debenture Trust Deed, appointed a Receiver/Manager who took over the Customers’ business and paid the appropriate Customs duty on the billets. The Receiver/Manager subsequently obtained court order from the Federal High Court and sold the billets and distributed the proceeds amongst the beneficiary banks, including Access Bank.’’
A spokesperson for Access Bank said the main thrust of the whole allegation against the Bank was to mislead their stakeholders and tarnish the brand.
‘’But we have a strong case and a solid brand’’ he said.
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