Diamond Bank Dupes Customer Of N150m

Alex Otti Diamond Bank MD

Normally, a bank is meant to be the safest place for people to keep their hard-earned money, but when such institution is corrupt and fraudulent, it calls for concerns and it also means all is not well with the sweats of customers of such bank.

Information getting to us indicates that one of the financial institutions in Nigeria, Diamond Bank Plc, is in another mess. Recall that the bank has not been having it good lately due to alleged frauds cases going on in the financial institution, whose reputation is believed to be weaning very fast. Little wonder why some Nigerians have started leaving Diamond Bank for other banks which offer better and quality services and where their money would be in safe hands.

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The latest gist is that Diamond Bank allegedly deducted the sum of N150 million from a customer’s account illegally. This has now forced the victim, West and Gate Limited, to instruct its law firm, Citi Layers Solicitors, to write the bank to refund the said amount.

In a letter written to Diamond Bank Plc by the law outfit, the bank was given seven days to effect the remission or be petitioned to the appropriate authorities and a legal action instituted against Diamond Bank.

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The trouble between Diamond Bank Plc and West and Gate started when the bank lost an unsecured loan of N6 billion to Allan Dick West Africa (ADWA) Limited, a telecommunications services firm promoted by Allan Dick Company (ADC), its parent company in United Kingdom in 2007.

Then, having obtained the loan, ADWA commenced liquidation without repaying it. However, rather than going after their lost money, Diamond Bank Plc took a lion share from N850 million paid to the local contractors of ADWA.

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As at press time, Aproko247 could not reach a representative of the bank for comments on this story.

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  1. SETTING THE RECORDS STRAIGHT ON THE DIAMOND BANK FACILITY TO ALAN DICK

    Following Alan Dick’s (ADWA) commencement of a voluntary winding up proceeding, Diamond Bank instituted legal proceedings against ADWA, wherein a petition was filed before the court for a Court Ordered Liquidation. Liquidators were appointed by the court to realise any sums due to ADWA for distribution to accredited creditors.

    As a result of the effort of the Bank and the Liquidators, in 2010, N850m was realized being receivables due from ADWA’s client. Out of this sum N150m was paid to Diamond Bank, the Liquidators applied N200m to the settlement of expenses and fees; while the balance was to be distributed by the liquidators for the settlement of other accredited creditors. West and Gate Ltd did not approach the Bank, neither are we aware that they approached the Liquidators.

    The Liquidators subsequently explored the option of commencing legal proceedings in the UK against the directors of ADWA for fraudulent practices resulting in the loss of funds through the removal of ADWA funds from Nigeria but not much progress has been made on this due to paucity of funds

    In December 2013, a letter was received from West and Gate Ltd alleging that they were entitled to the ADWA client’s funds of 2010, and requesting that the Bank refunds N150m directly to them. The Bank, in its response referred West and Gate to the liquidators to address any issues they may have, having formally been awarded stewardship of the affairs of ADWA by the court.

    Please note that the Facility was duly approved by the Board of the Bank for availment. Upon eventual default, the facility was fully provided for in line with CBN guidelines.

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