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John Darlington, former Managing Director of defunct Bond Bank, in an exclusive interview, has told BusinessDay the behind the scenes moves that led to his arrest and detention for allegedly hiding money belonging to Tafa Balogun, who was the then inspector-general of Police.
Balogun was compulsorily retired from the Nigerian Police Force on January 17, 2005 after the Economic and Financial Crimes Commission (EFCC), then headed by Nuhu Ribadu accused him of money laundering. Balogun was later arrested on March 3, 2005 and arraigned on a 70-count charge of money laundery. Jailed for six months, he forfeited assets worth in excess of N2 billion to the federal government.
Darlington, who was then the Managing Director of highflying Bond Bank, which was incorporated in 2002, but was already making waves as one Nigeria’s fastest growing banks, was arrested in September 2005 for concealment and conversion of N1.16billion allegedly belonging to Tafa Balogun.
But in an exclusive chat with BusinessDay, Darlington said that the allegations that linked him to Balogun’s money was all a set up to get him out of the way to pave way for Bond Bank to consummate a merger with other banks that eventually created the current Skye Bank.
In July 2004, Charles Chukwuma Soludo, who was the governor of the Central Bank of Nigeria (CBN) had directed all banks to raise their capital base of N2 billion to a minimum of N25 billion by 31 December 2005. At the time, there were 89 banks in the country and almost all of them had a capital base below N25 billion.
The directive from the CBN created a capital raising frenzy in the banking industry as many banks struggled to meet up with the minimum capital in order to retain their banking license, which the CBN had threatened to revoke for those that did not meet up with the minimum capital.
Many banks also started merger talks with other banks in a bid to combine their businesses to meet up with the new stipulated minimum capital. Bond Bank was one of the banks that were engaged in talks with different banks, including then Fountain Trust Bank, Prudent Bank and other banks, which later merged to form Skye Bank. Darlington claims that the troubles that led to his arrest originated in the merger discussions that produced Skye Bank.
“A shareholder (named withheld) who invested N500million in the formation of Bond Bank wanted to be the biggest shareholder in Skye bank, was pushing everybody there and said we should go and merge.”
However, he said some of the proposed merger partners insisted that they were not going to consummate a merger with Bond Bank if he is part of the deal because he had ‘very strong contract with Bond Bank”
“I won’t merge with you with John, you guys go and take care of him” one of the proposed merger partners was quoted to have said.
“The only condition that can foil this contract I had with Bond Bank was the issue of integrity and at that time, there was a topical issue in town about Tafa Balogun and his issues.”
A mandate was given to one of my executive directors (name withheld) who has been promised the position of managing director in the proposed bank to “go and write a petition to EFCC that Tafa’s money, N1.2billion is with John Darlington and that one foolishly wrote a petition to EFCC, because they had promised him they will make him MD.”
Darlington says that petition was what eventually led to his arrest and eventual detention by the EFCC. In the process of trying to raise money to meet up with the CBN’s N25 billion minimum capital, a manager had marketed a prospect who invested money in Bond Bank private placement in the name of two companies, which were later, linked to Tafa. Offer period for the private placement had not closed and the money was not in the custody of Bond Bank.
Recalling his arrest he said, “I was coming back from New York, searching for the best option that would give me the window to continue the quest and the dream and the vision we had for Bond Bank following to the CBN order to recapitalise.
“I landed in London from New York, and they said there was no connecting flight for me to Lagos. So, I said I would go into Abuja in the night. The only person I called and said get me a seat on the Virgin Nigeria 10.00am flight from Abuja to Lagos was the company secretary. I did not know she had sold me out.
“I landed in Lagos and I was picked up from the airport. I thought it was a joke; I have never been to a police station all my life. The officer that arrested me took me to the station with my wife. When we got to the station, he said, ‘you are under arrest for Tafa Balogun. I said I don’t know Tafa Balogun. I don’t know Tafa, I have never met Tafa, Tafa’s bankers were Fountain Trust not Bond Bank. What has John Darlington got to do with Fountain Trust?”
Unknown to him all this has been pre-arranged. A board meeting had been called on 19 September to discuss the merger with other banks to form Skye Bank. He was arrested on the 18th. That same day, the keys to his Akin Adesola street, Victoria Island office were changed to ensure he or his representative never got access to his office.
“I was not notified of the meeting by the company secretary, some one that I had personally recruited.
“As I landed EFCC, the first person I met there was the secretary. They said we should start writing statement. As I was writing, I was asking the secretary to read because she was my company secretary and lawyer and she was reading. I did not know she had sold out.”
After he had written the statements, the arresting EFCC officer called the EFCC head office for permission to allow him leave. A fine gentleman. The officer requested from his bosses in Abuja they should let me go, and that when we want him, we will bring him in. Why arrest me? Why not invite me? Why make a drama of the whole thing? Why arrest me. If I was traveling out, you would have arrested me but I was coming into the country and so had no intention to run away from any body. No, you can’t release him was the word that came back from head office. Then the officer said if I can’t release him, I will keep everybody who had been invited here in connection with the case.”
Other directors of Bond Bank had also been invited to give their own statement.
“Newspaper headlines on the 19th were ‘Bond Bank MD arrested by EFCC’. My life turned around since then. My banking career was destroyed. Banking is about character, name and integrity and I lost everything. My fellow board members had sold me out and trashed my name.
“You know what is most painful? Everything I tried to do ever since failed because each time I do international business, my partners do due diligence and they Google John Darlington and what appears is my case with EFCC. I now slipped into depression, because I am not a crook. I locked myself in my house. I just abandoned myself in the room. I developed health issues, challenges, pain, and frustration, anger. I was upset with myself. How did I end up here? Because I was in company of crooks, bandits, criminals.
“I have never stolen. 13 years have shown, EFCC could not make up a case against me. They combed and combed but at the end of the day, they could not make up any case against me. I was let go.
“My drive was to build a solid bank, deliver value and cash and enjoy my bonus, which was generous enough. I had a contract for 10 years. I was sorted but I didn’t know I was in bed with people of doubtful character and time has shown it. Look at what they’ went on to do to Skye Bank.”
When he first applied for the banking license for Bond Bank, the original copy of which he showed Businessday, the requirement was N500m and he knew how he will raise the money. However, by the time the application was being processed, the requirement had been raised to N1bn but with some struggle he was sure he will raise the money. But after the application was approved the threshold had gone up to N2bn. It was at this time, that some desperation set in. The tally brought him to just above N1.2bn. The quest to reach the N2bn mark brought him into bed with strange bedfellows who later caused his downfall.
