BGL boss, Albert Okumagba, loses bid to stop EFCC arrest

A Federal High Court in Lagos on Thursday turned down an ex parte application by the Chief Executive Officer of BGL Group, Albert Okumagba, to stop the Economic and Financial Crimes Commission (EFCC) from inviting or arresting him over alleged capital market malpractices.

The Security and Exchange Commission (SEC) had accused Okumagba and his company, BGL Group, of being indebted to various capital market investors, including the Rivers State Ministry of Finance, to the tune of about N5.8 billion as of June 2, 2015.

According to SEC, the alleged debt represented return on investments at maturity, which BGL allegedly failed to return to capital market investors.

SEC had moved to probe BGL on not less than 40 petitions written against it (BGL) by various aggrieved capital market investors in the country, including the Rivers State Ministry of Finance.

The SEC had earlier announced the suspension of the BGL Group from capital market activities following the allegations contained in the petitions.

But on May 27, 2015, BGL obtained an interim injunction by Justice Saliu Saidu restraining SEC from suspending it from participating in capital market activities.

Also on July 21, 2015, BGL obtained another interim injunction by Justice Mohammed Idris stopping the plan by SEC to hear the various petitions against it.

There are two lawsuits numbered FHC/L/CS/767/15 and FHC/CS/1050/15 pending in court over the subject matter.

On Thursday, however, BGL, through its counsel, Mr. Kolawole Reheem, appeared before Justice Mohammed Yunusa with an ex parte application seeking to restrain EFCC from enforcing a letter of invitation issued on Okumagba and others.

Raheem prayed the court to order the EFCC to suspend all their actions pending the determination of the lawsuits on the subject matter.

He argued that it would be sub judice for the EFCC to take any action against Okumagba while the existing lawsuits had yet to be resolved.

He also reminded the judge of the two subsisting court orders obtained by BGL.

“My Lord, the 1st respondent has sent a purported invitation to the 2nd applicant to come for interrogation in respect of capital market transactions carried out in 2007.

“Our complaint is that this also forms part of the issues that the applicants are trying to resolve in the pending suits before this honourable court, of which orders are exhibited.

“It is not the intention of the applicants not to visit the 1st respondent, but there is no point in visiting the 1st respondent since the matter is in court,” Raheem argued.

However, the judge observed that the applicants failed to seek for the leave of the court to hear the application during vacation.

He also refused to order the EFCC to appear in court to justify why Okumagba’s prayers should not be granted.

Rather than grant Okumagba’s prayers, Justice Yunusa asked that the processes be served on the respondents in Lagos as prayed in reliefs 5 and 6.

He adjourned till September 21, 2015 for the report of compliance with the service order.

SEC had accused BGL Asset Management Limited of acting contrary to its mandate by “wholly transfering funds received from the investing public to BGL Plc without engaging in any form of Fund/Portfolio Management.”

SEC further claimed that as of December 2014, BGL had run at a loss running into over N48 billion, adding that BGL had severe liquidity problems.