A 54-year-old man, Casmir Obioha, was on Monday arraigned before an Ikeja Magistrates’ Court for allegedly issuing a N2.58 million dud cheque to one Richway Microfinance Bank in Lagos.

 The defendant, whose address was not provided, is facing a one-count charge of issuing a dud cheque.

The prosecutor, SP Josephine Ikhayere, told the court that the defendant committed the offence on December 31, 2018.

Ms Ikhayere said that the defendant, sometime in 2018, went to the complainant’s office, Richway Microfinance Bank Ltd, Ikeja, to apply for a loan.

She alleged that the bank gave the loan to the defendant which he was supposed to refund on an agreed date but failed.

She added, “On November 21, 2018, the defendant went to the Microfinance bank and issued a dud Zenith Bank cheque No. 9627802 for N2.26 million. The money failed at the receiving bank due to insufficient funds. The complainant called his cell phone, but it was not reachable. He then reported the case to the police. During investigation, the police discovered that the defendant used fake home and guarantors’ addresses in his documentation for the processing of the loan. The defendant ran to an unknown destination but was later arrested by the police.’’

She said that the offence contravened Sections 1(1)(b) of the Dishonoured Cheque (offences) Act, 2004.

 Section 1(1)(b) prescribes a two-year imprisonment without an option of fine for anyone found guilty of dishonouring a cheque due to insufficient balance.

The Magistrate, Lateef Owolabi, granted the defendant bail in the sum of N350, 000 with two sureties in like sum.

 He said that the sureties must produce evidence of tax payment to the Lagos State Government. Mr Owolabi adjourned the case till August 8, for hearing.

(NAN)