In a recent development, the Federal High Court in Abuja has ruled that Senator Victor Umeh, who represents Anambra Central Senatorial District, must settle a bank debt of N135,722,303.40k along with accrued interest to the Asset Management Corporation of Nigeria (AMCON). The judgment, delivered by Justice Inyang Edem Ekwo in a suit filed by AMCON (FHC/ABJ/AMC/12/2022), established Umeh’s indebtedness to the corporation.
Justice Ekwo, affirming Umeh’s obligation, ordered the forfeiture of Umeh’s 5,000,000 units of Skye Bank shares in the Central Securities & Clearing System to AMCON. Additionally, the judge imposed a cost of N2 million on Umeh, who currently serves as the Chairman of the Senate Committee on Diaspora.
The court documents revealed that Umeh had obtained a loan of N23,250,000.00 from the now-defunct Skye Bank in January 2008 for investing in shares of a financial institution in Nigeria. Despite the explicit terms and conditions of the credit facility, Umeh failed to repay the loan upon its expiration.
AMCON, having acquired the unpaid debt from Skye Bank, initiated the suit to recover the outstanding amount, which stood at N135,722,303.40k as of April 2011. Justice Ekwo noted that despite being served with court documents, Umeh did not file any response or defense.
In his judgment, Justice Ekwo emphasized that Umeh’s failure to respond meant that the claims against him were deemed admitted. The court found in favor of AMCON, declaring Umeh’s indebtedness and issuing orders for payment, interest, and the forfeiture of the Skye Bank shares.
The specific orders include directing Umeh to pay the principal debt sum along with accrued interest and charges. Additionally, Umeh is mandated to pay interest on the judgment sum from a specified date until the final liquidation, and there is a declaration for the forfeiture of his 5,000,000 units of Skye Bank shares in favor of AMCON. The court also issued a final foreclosure order, divesting Umeh of his rights and interests in the shares and vesting them in AMCON. Finally, Umeh is ordered to pay N2 million as costs for filing and pursuing the claim.