UBA Pursues Legal Action Against WEMPCO Directors in N61bn Loan Recovery Effort
United Bank for Africa (UBA) has intensified its efforts to recover a N61 billion loan from WEMPCO, seeking prison terms for the company's directors over alleged court order violations. The bank accuses WEMPCO of utilizing intimidation tactics to obstruct the recovery process, demanding compliance with court directives.
The Abuja Times
United Bank for Africa (UBA) has escalated its legal battle against WEMPCO, a major player in the steel industry, as it seeks to recover a staggering N61 billion loan. The bank has filed a motion urging the court to impose prison sentences on the directors of WEMPCO, alleging that they have willfully disobeyed a court order related to the loan recovery.
According to UBA, WEMPCO's actions include orchestrated efforts to prevent the court-appointed receiver from accessing the company’s factory in Ogun State. The bank claims that the situation has been exacerbated by the use of thugs to intimidate and evict the receiver, thereby obstructing the enforcement of the court's ruling.
In a statement regarding the matter, UBA emphasized the seriousness of the alleged disobedience, stating, "The directors' blatant disregard for the court’s authority undermines the legal system and must be addressed decisively." The bank’s legal team is pressing for the directors to be held in contempt of court until they comply with the judicial orders.
“This is not just about recovering funds; it’s about upholding the rule of law and ensuring accountability in corporate governance,” UBA representatives declared.
The situation has drawn significant attention within Nigeria's financial and corporate sectors, highlighting the ongoing challenges faced by banks in enforcing loan agreements and the legal recourse available to them when faced with non-compliance. As UBA continues its pursuit, the implications of this case may set important precedents for future banking operations and corporate accountability in Nigeria.
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