$7 billion illegal loan: I have no apology for Soludo-Falana

Human rights lawyer, Femi Falana (SAN) says he has no apology to tender to former Governor of the Central Bank of Nigeria, CBN, Prof. Charles Soludo over $7 billion illegal loan granted to 14 commercial banks in the country in 2006.

Falana has asked the Economic and Financial Crime Commission, EFCC, to investigate the fund granted to the banks illegally by Soludo as he claimed that the money was criminally diverted.

Soludo has demanded apology from Falana for claiming that the fund was criminally diverted, denying the existence of such fund but Falana in a statement on Sunday said he has no apology to tender to Soludo for speaking the truth.

Explaining the rationale behind the fund, Falana explained that on October 3, 2006, the Central Bank of Nigeria under the management of Professor Chukwuma Soludo gave a loan of $7 billion to 14 commercial banks in Nigeria, which he said was confirmed by the Head of the CBN Corporate Affairs , Mr. Festus Odoko when he announced that “deposits worth $7 billion representing the apex bank’s share of the foreign reserves estimated at about $38 billion has been released to the consortium of bankers.”

“Barely four days later, a respected economist, Mr. Henry Boyo challenged the illegal claim that the $7 billion was a “share” of the CBN in the nation’s foreign reserves. Since the funds belonged to the three tiers of Government by virtue of section 162 of the Constitution, Mr. Boyo rightly stated that “the Senate and the House of Representatives would have defaulted in their constitutional duties if CBN is not invited to defend why $7 billion of our reserves should be ‘given’ to 14 banks without oversight approval.”

“Having confirmed that the banks have failed to liquidate the said $7 billion loan, I have asked the Economic and Financial Crimes Commission to investigate the illegality of the loan and recover same together with other huge funds which have been criminally diverted or withheld from the Federation Account.

“With respect, the denial of the $7 billion loan by Professor Soludo has supported the request for a thorough investigation of the allegations contained in my petition. However, having regard to the facts and circumstances of the controversial loan, Professor Soludo may wish to direct his demand for apology to Mr. Festus Odoko,” he stated.

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