The Economic and Financial Crimes Commission has on Friday discredited the claim that the credit facilities given to some companies by the defunct Bank PHB were endorsed by its Board of Directors.

According to the report, a former Chairman of the bank, Prof. Pat Utomi, had claimed before a Lagos High Court, Ikeja, that the N100bn loan facilities had been ratified by the board.

CEOAFICA gathered that Utomi had made the claim while testifying at the trial of a former Manager of the bank, Mr. Francis Atuche and his wife, Elizabeth, before Justice Lateefat Okunnu of a Lagos High Court.

The Atuches were being prosecuted alongside a former Chief Financial Officer of Bank PHB, Mr Ugo Anyanwu, for allegedly stealing N25.7 billion belonging to the bank.

EFCC counsel, Mr. Kemi Pinhero, faulting the claim, said that the purported ratification did not follow the standard practice as the purposes for which the funds were disbursed were not contained in the minutes of the July 9, 2008 meeting.

Pinheiro who tendered the minutes of another board of directors meeting held on August 25, 2010, alleged that the ratification was approved by Utomi and other board members because they had collected loans directly and indirectly from the bank.

Pinheiro added that a company, UT Roads Maintenance Ltd, where Utomi was the Executive Chairman, was granted a N5m loan while another company, Consolidated Business Support Ltd., owned by another board member, Mr Ifeanyinwa Osime, received almost N1bn.

He further accused Utomi of not fully discharging the loans till date which led the bank to drag him to court to recover the debt.

Reacting to the allegations, Utomi maintained that ratification of loans was a routine in banks, adding that the loans were ratified on individual basis after the presentation made by the credit committee.

He denied owing the bank any money, insisting that he had filed a counter-suit against Bank PHB,and also faulting the claim that his cousin, Emmanuel Utomi, had collected N4m from Claremount Management Ltd. account on his behalf.

“It is my right as a citizen to take facility from any bank,” he was alleged to have said.