$61 billion loan: UBA asks court to jail 9 people linked to WEMPCO

United Bank for Africa (UBA) Plc has asked the Federal High Court in Lagos to jail nine people linked to Western Metal Products Co. (WEMPCO), accusing them of forcing a court-appointed receiver to leave the group’s steel plant in Ogun State.

The request is the latest step in the bank’s attempt to recover $61.45 billion allegedly owed by the industry group.

The notice of indictment was published in a national newspaper on Tuesday with an order allowing its publication by the newspaper.

It accuses the respondents of “intentional, deliberate and orchestrated disobedience” of an April 2 order and demands that they remain in prison until they comply.

Those nominated are Lewis Shui Noor Tung, Phillip Shui Che Tung, Alhaji MA Ola Yusuf, Tung Lawrence Blake, Alli Aare Hadji Tokunbo, Paul Shui Po Tung, Robert Tung, CL Ip and Taiwo Alli, all listed on 18 Wempco Road, Ogba, Ikeja.

Nigerian Enamelware Co. Plc, listed on Nigerian Exchange, is one of the 17 defendant companies. Robert Tung sits on its board.

On April 2, Judge Akintayo Aluko froze up to $61.45 billion in WEMPCO-related funds in 27 banks and fintechs. It also appointed Romeo Ese Michael as receiver of assets not yet pledged in a 2019 credit agreement.

In its affidavit, UBA alleges that after bailiffs handed over the Magboro/Ibafo facility, the respondents brought in thugs, broke the receiver locks and threatened its staff with “serious harm”.

He says they continued to run the business and divert its funds. None of the allegations were tested in court and WEMPCO’s response was not immediately available.

Court papers also show the talks failed. In June 22, WEMPCO‘S The lawyers, led by Dapo Akinosun, SAN, asked the UBA for an urgent meeting, proposing an interim standstill, a joint reconciliation of accounts and “a structured framework for reimbursement”.

UBA’s lawyer, Temilolu Adamolekun, SAN, responded the next day. He questioned how a company that “uses physical violence in the field and resorts to self-help” could seek dialogue, but agreed to meet.