SEC takes over DEAP Capital after board’s forced resignation
The Securities and Exchange Commission (SEC) has taken over and appointed an interim management team for the troubled DEAP Capital Management & Trust Plc.
The appointment of the interim management by SEC was sequel to the resignation of the entire board of DEAP Capital Management & Trust. Sources said the resignation of the directors were due to regulatory pressure.
The three-man interim management is expected to oversee the affairs of the company, overseeing both the board’s oversight functions and key managerial decisions.
The three-man team included Mrs Anastasia Braimoh as chairperson, Mr Alhassan Sidi and Mrs Gbemi Adekola.
In a regulatory filing, Company Secretary, Deap Capital Management & Trust, Yetunde Fashesin-Souza, said the interim management team would soon call an emergency general meeting of members of the company to constitute a new board of directors.
The Asset Management Corporation of Nigeria (AMCON) had last week taken over assets belonging to the 14 former directors of Deap Capital Management over alleged indebtedness of some N1.6 billion. AMCON had purchased the non-performing loan (NPL) of Deap Capital Management & Trust during the first phase of Eligible Bank Assets (EBA) purchases from Zenith Bank and FCMB in 2011.
The seizure was sequel to the order of Justice C. J. Aneke of the Federal High Court, Lagos Division made on January 18, 2021.
AMCON on February 23, 2021 took effective possession of the seven properties listed by the court through its Debt Recovery Agent – Etonye & Etonye.
The court also ordered the freezing of the bank accounts and shares of the company’s directors namely David Ogwu, Anthony Ezeh, Clara Rotzler, Vincent Otiono, Vincent Sankey, Victoria Alo, Hon. Preye Ogriki, Treasure Afolanyan, Chief Nwagwu, Peter Ololo, Gordons Ejikeme, Joe Idudu, Falcon Securities Limited and Rainoil Limited. Rainoil has, however, denied any involvement in any AMCON-related transaction.
The seized properties included properties situated at Plots 14, 15, 16 and 17 in Block 1B, Isolo-Ishaga Area, Mushin, Lagos State; Mile 3 Old Isheri Road, Ikeja, Lagos State; Plot 13, Block 65 Magodo Residential Scheme, Lagos State; No. 73, Femi Kila Street, Okota, Isolo, Lagos State; Plot 22, Block 91, Lekki Peninsula Residential Scheme, Lekki Area, Lagos; Government Land Allocation, Lekki Peninsula Scheme II, Lekki, Lagos State; and 2nd Avenue Estate Extension Ikoyi, Plot No. 11 Eti Osa LGA, Lagos State.
Founded in 2002, Deap Capital is a fund management and investment banking firm quoted on the Nigerian Stock Exchange (NSE).
AMCON had last July enforced on properties belonging to the chief promoter of the company, Mr. Emmanuel Ugboh.
However, due to the lack of adequate collateral, AMCON had to commence asset tracing on the company’s directors, an exercise, which revealed the seven properties the corporation now enforced upon.
AMCON’s action is in line with Section 61 of the AMCON Act, 2010 and Section 49 (1) & (2) of the AMCON Act 2019 (As Amended).