Former managing director of Bank PHB, Francis Atuche and one of his executive directors, Charles Ojo arraigned at a Federal High Court sitting in Lagos,  have been accused of granting a credit facility of N450billion without any collateral. The Economic and Financial Crimes Commission, EFCC, made this allegation on Tuesday at the resumed hearing of their bail application.

Counsel to the EFCC, Kemi Phinherio, SAN, told the court that the credit facility was given frivolously without collateral and that the two bank chiefs acted beyond their approval limits.

Atuche and Ojo were arraigned on a 26 count charge last Wednesday before Justice Akinjide Ajakaiye. The EFCC accused them of mismanagement of depositors’ funds and abuse of credit management rules. They both pleaded “not guilty” to the charges preferred against them.

In a bail application deposed to by Atuche’s wife,  Elizabeth, his counsel  Tony Idigbe,SAN prayed the court to “consider the application in liberal terms because medical reports showed that Atuche is suffering from systematic hypertension and obstructive airway disease” . Counsel to Ojo, Mike Osekhome, also prayed the court to consider his bail application in favour of his client owing to  the constitutional  presumption of his  innocence.

All these claims cut no dice with the EFCC. Phinherio insisted that, if granted bail, the suspects will interfere with the investigations of the commission and may unduly influence all the witnesses the commission relies upon. Justice Ajakaiye adjourned ruling on the bail application till Novenber 9^th , 2009 while they still  remain in the custody of the EFCC.