WIKIFX REPORT: N117bn moved out of MBA Forex accounts despite CBN freezing order

A Federal High Court in Port Harcourt has adjourned to 17 November, 2021, in a suit filed by investors of failed MBA Forex Trading and Capital Investment Limited, seeking Central Bank of Nigeria CBN to compel commercial banks to disclose the alleged movement and reduction of their investment funds from 117 billion to 113 million naira, even as the forex company accounts have been frozen.

Recall that the investors numbering over one thousand are seeking court order to compel regulatory agencies of government including the Economic and Financial Crimes Commission, EFCC to recoup their capital and return on investments from MBA Forex company.

Counsel representing the aggrieved investors, Emeka Ojukwu, brought to the court notice of a similar case ongoing in another court of competent jurisdiction, while urging the court to wait for the outcome before taking decision on the hearing of the matter.

The Presiding Judge, Justice Stephen Pam, after listening to Counsels and realizing there is a similar suit pending before a court of coordinate jurisdiction to compel regulatory agencies including the Economic and Financial Crimes Commission, EFCC to retrieve investors capital and return to them, adjourned the case to 17 November, 2021.

In an interview with journalist, Counsel to the aggrieved investors Emeka Ojukwu, claimed that the funds in the custody of banks belonging to investors had disappeared with only about 113 million left and that they want the Apex bank to explain the movement of funds in their possession.

He accused the CBN of failing in it duties to play its regulatory role to protect investors as MBA operated for three years, just as he accused banks of complicity.

Court 2 of the Federal High Court Port Harcourt is where that order was obtained to freeze MBA Forex account, but as of the time they obtain this order, we now see the deposit that was served on me today, most of these monies have disappeared. Right now they have nearly a hundred and thirteen million naira in all the accounts, they have not given disclosure where these monies are moved to which is why we are in court.

We want to know where these monies have moved to so as to trace it. As far as I am concerned, the banks are heavily complicity in what the investors are going through.

Revelations that have come forth in the process of this matter, the affidavits filed by Counsels in this matter showed that Banks where aware that this company did not have a license to operate. The investment and security act provides that operators of this kind of scheme must be duly registered with Security and Exchange Commission SEC.

“These companies were setup to collect money from the public and invest on their behalf, so from the beginning the Banks ought to have requested for the companys license to operate which is the part of the KYC requirements, but the Banks are busy playing tricks with us. The regulator CBN is busy saying it took steps to protect investors three years after this company MBA Forex was setup.”

Also, Counsel to Central Bank of Nigeria CBN, Ibim Dokubo, said his client promptly acted to save the investors.

Before the actions was filed, CBN had pursuant to its powers under the Banks and other financial institution act, applied to this honourable court for the accounts of the MBA company to be frozen. On the basis of that frozen order these investors have come to court.

“You cannot after sleeping over your right over the years, come to compel us to do something we have already done. We feel that you cannot proliferate a case in two courts.”