In a case that has raised eyebrows in the financial community, Guaranty Trust Bank (SL) Ltd. and several prominent individuals, including Ikubolaje Nicol, Augustus Issa Turay, and Patrick Adeyemi Eegunnike, are facing serious legal challenges in the High Court. The charges, presided over by the Honourable Justice A. R. Mansaray, include five counts: Conspiracy to Defraud, Falsification of Accounts, Forgery, Uttering Forged Documents, and Failure to Keep Records of Transactions. The latter charge is specifically directed at the bank under the recently enacted Anti-Money Laundering and Combating Financing of Terrorism and Financing the Proliferation of Weapons of Mass Destruction Act 2024.
In addition to the High Court charges, the bank is also being prosecuted in the Magistrate Court for Fraudulent Conversion, a violation of the Larceny Act of 1916. The unfolding drama centres on allegations made by Hussein Ibrahim Bazzy, who claims that his name and signature were forged by Nicol, Turay, and other bank officials on an offer of a banking facility dated May 31, 2017. This facility allegedly indicated that Mr. Bazzy was personally guaranteeing a loan of NLe7,600,000 in favour of Admiral Trading, a company owned by Mr. Jihad Saleh.
The roots of this scandal trace back to 2015, when Mr. Bazzy, also known as Bazzy & Sons, was approached by Mr. Saleh for a loan. Instead of providing the funds directly, Mr. Bazzy recommended that Mr. Saleh obtain the loan from GT Bank. The bank subsequently approved a loan amounting to the Leones equivalent of US$200,000, with Mr. Bazzy acting as the personal guarantor. The collateral for this loan included Mr. Bazzy’s property at No. 4 George Brook Street, Freetown, as well as Mr. Saleh’s property located on Main Wilkinson Road. At that time, Ikubolaje Nicol served as the Managing Director of GT Bank, with Augustus Issa Turay handling the loan process.
Surprisingly, Mr. Bazzy was never informed by the bank about any failure by Mr. Saleh to repay the loan until late 2018, despite the loan being due for repayment within six months. This lack of communication raises serious questions about the bank’s operational practices and its duty to inform guarantors of any defaults. Mr. Saleh reportedly settled the loan in 2016 and informed Mr. Bazzy of the repayment, prompting Mr. Bazzy to seek confirmation from Nicol and Turay regarding the discharge of Mr. Saleh’s liability. Considering that the loan had been largely paid off and Mr. Saleh’s property served as additional collateral, Mr. Bazzy believed there was no reason for his property to be at risk.
In 2017, Mr. Saleh, through his company Admiral Trading, expressed interest in importing rice into Sierra Leone. However, Nicol and Turay discouraged this venture, suggesting instead that he import cement. They claimed to have credible overseas contract agents who could facilitate this business. Mr. Saleh, trusting their advice, sought a Letter of Credit from GT Bank, using his property at Lower Pipeline, Off Wilkinson Road, as collateral. Nicol and Turay confirmed that this property was sufficient collateral for the Letter of Credit amounting to Le 5,500,000,000.
During this time, Nicol reportedly pressured Mr. Bazzy to invest in the cement business that Mr. Saleh was importing. However, Mr. Bazzy made it clear that he had no interest in the venture. Importantly, Mr. Bazzy had no involvement in the request or provision of collateral for the Letter of Credit related to Mr. Saleh’s cement importation. There was no request for Mr. Bazzy’s title deeds, nor was he asked to act as a guarantor for the loan of Old Le 5,500,000,000 granted to Admiral Trading Investments. Their business relationship concluded in 2016, and there was no written joint venture or partnership between them.
The loan facility from May 31, 2017, notably made no mention of Mr. Bazzy, and he was not present during any negotiations regarding the loan. The offer of banking facility dated May 26, 2017, bore only Mr. Saleh’s signature, with no indication of Mr. Bazzy’s involvement. Furthermore, there was no Letter of Request from Mr. Bazzy for the facility of Old Le 7,600,000,000, which was purportedly provided alongside the facility of Old Le 5,500,000,000.
Compounding the issues, Mr. Bazzy never utilised the purported loan from the May 31, 2017 facility, nor was it disbursed to Bazzy & Sons’ account at GT Bank. The bank failed to inform Bazzy & Sons about this unutilized and undisbursed loan, which was later claimed to have been availed to Admiral Trading. Additionally, Bazzy & Sons did not authorise or consent to the use of this undisbursed loan by Admiral Trading. Despite numerous irregularities and risks, the bank and its officials proceeded with the transaction, even after senior officials raised concerns about the lack of proper procedure.
Ikubolaje Nicol not only initiated the disputed facility of May 31, 2017, but also authorised Augustus Issa Turay and Musa Kamara to prepare an internal memo dated July 20, 2017, to have the undisbursed facility of Old Le 7,600,000,000 utilised by Admiral Trading. All of these processes were reviewed and approved by senior committees, group heads, and the bank’s board, raising further questions about oversight and accountability within the institution.
Due to excessive bank charges, Mr. Bazzy eventually closed his account with GT Bank in early 2018 after settling all outstanding issues. Following this, he requested the release of his collateral documents from the bank but faced continuous delays from Nicol and Turay. While waiting for the release of his collateral, Mr. Bazzy received a letter from GT Bank’s solicitors demanding repayment of Old Le 7,600,000,000, falsely claiming he was liable for debts associated with Admiral Trading. Upon disputing this debt, Nicol apologised and assured Mr. Bazzy that the matter would be corrected. However, instead of an apology, the bank initiated a court action against him for the same amount.
While the case was still pending in the High Court, GT Bank made a criminal complaint at the Transnational Organised Crime Unit (TOCU), alleging that Mr. Bazzy was a shareholder and director of Admiral Trading and had applied for a loan of US$1,000,000. The bank claimed he stood as a guarantor for all loans taken by Mr. Saleh’s companies. The absence of supporting documents led to Mr. Bazzy’s release on self-bail, and Mr. Saleh denied the bank’s allegations during his interview at TOCU.
Upon reviewing the bank’s documentation, Mr. Bazzy discovered that his signature had been forged on the May 31, 2017, offer of a banking facility. Further investigation revealed that Nicol and Turay had used Mr. Bazzy’s letterhead to fabricate loan requests under the guise of his approval. They even forged his signature to seek an extension of time to pay the initial loan provided to Sierra Bird, despite those loans having already been fully repaid.
The situation has raised serious questions about the integrity of Guaranty Trust Bank and the actions of its officials. Several senior officials, including Magnus Turay, have confirmed that for most of these transactions, there was no loan application letter or request form. In cases involving the alleged consolidation of non-performing loans, it was established that such consolidation should only occur after a written application from the customer, yet the bank failed to present any such documentation.
As this case unfolds, it highlights the potential for serious misconduct within financial institutions and the importance of accountability in banking practices. The implications of these allegations are far-reaching, affecting not only the individuals involved but also the trust and confidence of the public in the financial system. The legal proceedings will undoubtedly scrutinise the actions of all parties and seek to uncover the truth behind these serious accusations of forgery and fraud.
