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Erswhile Attorney General of Imo State, Chief Chukwuma-Machukwu Ume (SAN), has written to the management of Polaris Bank, demanding the release of N868m loan facility belonging to a customer, Kenchez Nigeria Ltd.
In the letter addressed to the Managing Director of the bank, dated September 15, 2025, and authored by Chief Machukwu-Ume, the Senior Advocate of Nigeria threatened to report Polaris Bank to the Central Bank of Nigeria (CBN) and other relevant regulators, including the National Deposit Insurance Company (NDIC), of the alleged financial misconduct.
Additionally , the senior lawyer said he would head to court if the Bank refuses to release the withheld the¹ loan facility of N868 million.
According to Machukwu-Ume, Kenchez Nigeria Ltd, has been banking with Polaris Bank limited for 22 years, and had applied and obtained the loan from Lecon Finance Company Ltd to acquire a 160-ton Terex Demag AC160-2 Crane for its operational activities.
He, however, sought the refund of N16, 206,860.66 representing the first month’s interest which his client has already paid to Lecon Finance Company Limited, on the loan facility.
The SAN revealed in his letter that long after the N868 million was paid to Polaris, which acted as the guarantee bank for the loan, it has refused to release same to its owner, Kenchez Nigeria Ltd, even after satisfying all the preconditions put in place by the bank, including perfecting a legal mortgage over it’s property in Port Harcourt.
He noted that by withholding funds earmarked for a defined purpose, “your bank has acted contrary to section 13 of the Banks and other Financial Institutions Act (BOFIA) 2020, mandating banks to conduct their operations in accordance with sound banking practices, and in breach of the CBN Consumer Protection Regulations, 2019, which requires fairness, transparency, and good faith in dealings with customers.
Ume stated that; “acting on the strength of the above guarantee by the bank, Lecon Finance Company Limited on August 4, 2025, disbursed the sum of N868m into the bank guarantee account of our client (Kenchez Nigeria Limited), domiciled with your bank.
“This disbursement triggered interest obligations under the facility at the rate of N16, 206, 860.66 per month, payable in arrears, notwithstanding that our client had not yet accessed the fund.
Machukwu-Ume also claimed that the bank compelled his client to perfect a legal mortgage over property in Port Harcourt, obtain counter-idemnity issuance and provide executed personal guarantees with notarized net worth statements.
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