The Polytechnic Ile-Ife Tackles Access Bank Over N20m Deposit

The Polytechnic Ile-Ife School Environment

The management of The Polytechnic Ile-Ife, (formerly Universal College of Technology) Osun State has expressed its reservations over the alleged failure of Access Bank to release a sum of N20 million placed on a fixed deposit account with the defunct Intercontinental Bank Plc now Access Bank Plc.

According to the lawyer of the institution, Mr. Abiodun Williams, the N20 million fixed deposit was used as a security for the issuance of a N100 million bank guarantee in favour of the National Board for Technical Education (NBTE) from the Ile Ife branch of the bank. The lawyer explained that the guarantee which dated January 22, 2008 with Ref No SWR/BG/0529/01/2008 was for five years with expiration date put at January 22, 2013.

Consequently, the institution on February 19, and May 7, 2013, applied for the refund of N20 million in two separate letters addressed to the regional manager, Access Bank, Old Bodija Ibadan, and Oyo State. These letters were also complemented by the intervention of NBTE in a letter dated May 23, to the Orita Challenge, Ibadan branch manager of the bank, reminding him of the need to effect the terms of the instrument by releasing N20 million to the polytechnic.

THISDAY however gathered that the management of the school, who were said to have been promised by officials of the bank on several occasions, was yet to be paid as at the weekend.

An official of the bank, Mr. Segun Fafore, told THISDAY at the weekend that the bank is still holding on to the money because the institution is still indebted to the bank although he declined to disclose the level of the indebtedness. He added that the debt has been sold to Asset Management Corporation of Nigeria (AMCON) and that the matter is pending in court.

However, the institution's legal counsel dismissed the allegation saying the matter in court is a separate issue which has nothing to do with the N20 million fixed deposit.

"By the way, we were the one that dragged the bank to court for its failure to provide evidence for N12 million taken from us for a share purchase and it has nothing to do with the N20 million fixed deposit we are talking about now," the lawyer who claimed his client is not indebted to the bank explained.

He described the bank's action as a breach of contract which he said is already affecting the financial health of the institution.