Wema Bank Shares Jump 4.70% Amid N1.7bn Money Laundering Allegation
Investors shrugged off the money laundering allegations against the staff of Wema Bank and embraced the lender’s shares, pushing them up by 4.70 per cent on the Nigerian Exchange Limited (NGX).
The bank’s shares rose 4.70 per cent upon resumption of trading on Monday on the NGX, from N3.19 kobo per share to N3.34 kobo per share after the close of trading.
Also, the financial institution’s market capitalisation appreciated by 4.70 per cent or N1.928 billion to settle at N42.946 billion up from N41.017 billion.
During Monday’s trading session on the Nigerian Bourse, the bank traded a total of 3.619 million units of shares valued at 11.739 million, while its outstanding shares remain at 12,858,155,360.
The rise in the bank’s shares came amid money laundering and bribery allegations against members of its staff which the management described as falsehood.
Wema Bank was accused of involvement in money laundering to the tune of N1.7 billion, which necessitated a case at a Lagos magistrates court in February 2022.
However, the case, which had Isaac Adewole, the managing director of Shibahwells Energy, and Kingsley Ananwude, a staff member of Wema Bank, as defendants, was struck out over lack of merit.
In a statement, the bank said its attention was drawn to recent reports on the allegation, adding that the reports were false, lacked merit and aimed to malign its staff.
“The bank wishes to state categorically that there is no merit in the article, and it is a malicious publication against members of our staff and the bank’s customer,” the bank stated.
“The said allegations are being peddled by an aggrieved third party, who voluntarily released his property to be used as part of the collateral to secure a loan obtained by the bank’s customer. Specifically, on Tuesday, March 15, 2022, case no. MIK/B/6/2022–Commissioner of Police vs. Adewole Isaac and Kingsley Ananwude, for alleged stealing and money laundering involving N1.7 billion was struck out by Magistrate A.O. Layinka of the Magistrates Court, Ikeja, and the defendants discharged following the legal advice from the office of the director of public prosecution (DPP), Lagos State that no prima facie case has been established against the defendants.
“We urge the general public to ignore the false information being circulated. The bank has already engaged its solicitors to institute appropriate legal action.”
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