GTB 50 Million Naira Loan: Court Exonerates Osun Govt

Osun State High Court sitting in Ede presided over by Justice Kudirat Akano today exnorate Osun State Government on Guarantee Trust Bank fifty million Naira loan.

Guarantee Trust Bank (GTB) sued Osun State Government and Odo-Otin Nigeria Union of Teacher (NUT) Cooperative Thrift and credit Union Society limited on the loan given to the cooperative society and state government stand for the union as guarantor.

The suit which initiate by GTB on 21of January, 2016 went through the preliminaries and eventually, trial commenced where the GTB counsel Barrister Oladipo Olasope called a lone witness Mr Jelili Olaleye.

Meanwhile NUT cooperative Society also called a withness Mr Bamidele Owolabi Sunday who testified as defence withness.

While Alhaji Abdul Wakeel Sayid stand withness for the state government.

The point of the case of the claimant (GTB) against the Osun State Government is premised on the offer letter of guarantor to the Odo-Otin (NUT) cooperative.

The letters were admitted as exhibits. Taken further, the Bank also tender alleged contract of guarantee and indemnity purportedly executed by the State Government.

In his defence, Counsel from the Ministry of Justice, representing the State Government Idrees Mikaheel, Esq. told the Court that the NUT Odo-Otin Cooperative Society contested that the Bank did not advance any loan to her but the Bank granted the loan to individual members of their union.

Barrister Idris further contended that the disbursement as carried out by the bank was done in contravention of the spirits and letters tender before the court and mark as exhibits.

He further contended that the Bank issued letters of clearance to her members to whom the Bank had disbursed the facilities without any confirmation from the NUT Odo-Otin Cooperative whether such members were still indebted to the bank or not. These letters of clearance were tendered and admitted in evidence as exhibits.

Counsel to the GTBank Barrister Oladipo Olasope Stated that bank granted loan of 50 million naira to the NUT Odo-Otin Cooperative Society, that the loan was backed and endorsed by the then TESCOM, that TESCOM duly signed an irrevocable letter of undertaking to domicile the monthly salary and terminal benefits to the claimant; he stated that the tenure of the loan granted and disbursed in January, 2011 was two years.

The resolved the issue of fraud raised by the defence counsel was proved and the State Government cannot be held liable for a contract premised in fraud.

Barr. Idrees Mikaheel submitted further that the Government of the State is not a party to the agreement and it did not guarantee the loan as alleged by the Claimant.

In his judgement Justice kudirat Akano exonerated the State Government when the court was convinced that the 50 million Naira loan was not properly executed for and on behalf of the Government of the State.