A Federal High Court in Abuja has ruled that Senator Victor Umeh, who represents Anambra Central Senatorial District, must pay N135,722,303.40k, along with accrued interest, to the Asset Management Corporation of Nigeria (AMCON) for his outstanding bank loan.
The judgement was delivered by Justice Inyang Edem Ekwo in a suit filed by AMCON.
Justice Ekwo declared that Umeh was indeed indebted to AMCON and ordered the forfeiture of Umeh’s 5,000,000 units of Skye Bank shares, held in the Central Securities & Clearing System, to AMCON.
The judge also awarded a cost of N2m to AMCON against Umeh, who currently serves as the Chairman of the Senate Committee on Diaspora.
According to court documents, Umeh obtained a loan of N23,250,000.00 from the now-defunct Skye Bank in January 2008 to invest in purchasing shares of a financial institution in Nigeria. The loan had a tenor of 356 days, and Umeh failed to repay the loan at the expiration of the agreed period.
AMCON acquired the unpaid debt when Skye Bank failed to recover the funds from Umeh. The total debt stood at N135,722,303.40k as of April 2011, and AMCON filed the lawsuit to recover the outstanding amount.
Despite being served with court documents related to the case, Umeh failed to file a response or present a defense. Consequently, the judge deemed the assertions made by AMCON in its pleadings as admitted and established due to Umeh’s failure to challenge them.
The judge noted that even without a defense from Umeh, AMCON was able to prove its case through the evidence presented. Based on this evidence, the court ruled that Umeh is indebted to AMCON.
In the judgement, the court declared Umeh’s liability for the principal debt sum, accrued interest, and charges, and ordered him to settle the debt. The court also mandated Umeh to pay interest on the judgement sum until its full liquidation. Additionally, the court ordered the forfeiture of Umeh’s 5,000,000 units of Skye Bank shares to AMCON.
Lastly, the court imposed a cost of N2,000,000 on Umeh for filing and pursuing the claim.
