A court has mandated Victor Umeh to settle a debt of N136 million owed to Skye Bank, now managed by AMCON

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A Federal High Court in Abuja has mandated Senator Victor Umeh to settle a sum of approximately N136 million to the Asset Management Corporation of Nigeria (AMCON) in connection with an outstanding bank loan.

Justice Inyang Ekwo, presiding over the case, directed Senator Umeh, representing Anambra Central Senatorial District, to repay the debt along with accrued interest. Justice Ekwo, affirming Umeh’s indebtedness to AMCON, issued an order for the forfeiture of 5,000,000 units of Skye Bank shares owned by Umeh in the Central Securities and Clearing System to AMCON. Additionally, the judge awarded a cost of N2 million in favor of AMCON and against Senator Umeh.

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AMCON initiated the lawsuit against the lawmaker, who currently serves as the chairman of the Senate Committee on Diaspora. The corporation informed the court that Umeh obtained a loan of N23,250,000.00 from the now-defunct Skye Bank in January 2008, intending to invest in and purchase shares of a financial institution in Nigeria.

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According to AMCON, the credit facility’s term was set for 356 days, and despite explicit terms and conditions outlined in the offer letter, Umeh failed to repay the loan at the end of the agreed period. AMCON acquired the unpaid debt when Skye Bank was unsuccessful in recovering the funds from Umeh. As of April 2011, the outstanding debt stood at N135,722,303.40k.

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In delivering the judgment, Justice Ekwo noted that despite being served with court documents, Umeh did not file any response or make an effort to present a defense. The judge emphasized that the absence of a defense from the defendant allowed the assertions of the claimant (AMCON) to stand unchallenged and deemed admitted and established. Despite Umeh’s failure to file a defense, the plaintiff successfully proved its case through the evidence presented.

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