Sujimoto Holdings Group CEO Olasijibomi Ogundele has denied defrauding a client in a property deal that has sparked controversy.
PREMIUM TIMES reported how the Force Criminal Investigation Department (FCID) of the Nigerian Police in Abuja arrested Mr Ogundele between October 30 and 31 for alleged fraud involving $325,000 he received from a client.
The FCID launched an investigation into how Mr Ogundele's real estate company, Sujimoto Construction Limited, received $325,000 from a client for a real estate deal in November 2020 and failed to complete the project or refund the money.
The investigation followed a petition addressed to the deputy inspector general of police in charge of criminal investigations by lawyer Pelumi Olajengbesi of Law Corridor.
The petition explained that the real estate tycoon obtained the sum of $325,000 from one Kabiru Garba Ibrahim on November 5, 2020.
He accused Mr Ogundele of “obtaining money by false pretense, fraudulent misrepresentation and criminal breach of trust”.
However, in a statement sent to PREMIUM TIMES on Tuesday, Ogundele denied the alleged crimes, adding that he made clarifications and provided evidence that cleared him to the FCID police.
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While he vowed not to “take a longer route to legal action,” the business mogul noted that he “chose to follow the path based on dialogue and understanding” and “met with the client involved to reach an amicable resolution.” ”.
The real estate tycoon blamed the fall of the naira and the country's economic crisis for the delay in fulfilling the agreement.
“Rising materials costs, a falling currency, the cascading effect of inflation and a changing economic landscape have conspired to slow our ambitious effort to design and build a landmark property that not only surpasses the iconic Tower Necom of 1979 as the tallest and most luxurious project in Nigeria, but it also sets a benchmark standard for luxury living throughout Africa,” he wrote.
Projects
In July, Ogundele revealed that his company's ambitious $225 million LeonardoBySujimoto real estate project, located in Ikoyi, Lagos State, would surpass the iconic 45-year-old NECOM House built in 1979, marking a new era of architectural excellence and redefining luxury living in sub-Saharan Africa.
The planned 165-metre marvelous project, if built, will eclipse the dominant 106-metre NECOM House, which currently stands as the tallest building in West Africa. It features numerous new features, including more than 48 electric vehicle charging stations, a virtual indoor golf bar, a standard IMAX theater and eight private pools.
In September, the real estate mogul's firm and construction company, Sujimoto, partnered with the Enugu State Government on a project to aid the education revolution in the state.
Enugu State Governor Peter Mbah’s N420 billion initiative aims to build 260 state-of-the-art smart schools in all districts of the state.
Initially focused on expanding its agro-industrial projects in Enugu, Sujimoto's involvement took a transformative turn when Governor Mbah invited the company to join the educational project.
The smart schools, designed to encourage experiential learning and innovation, will be built across all 17 local government areas of Enugu State and each school will cost about N1.6 billion.
Full statement from Sijibomi Ogundele, GMD Sujimoto Group
November 5, 2024: I arrived at the Force CID office in the capital city of Abuja with a pile of evidence: the title documents of the Leonardo project in Banana Island, approvals from Lagos state and all relevant documents proving our maximum commitment to transparency. with the bold project LeonardoBySujimoto.
We clarified that there was nothing related to the crimes of obtaining money for false purposes, fraudulent misrepresentation and criminal breach of trust, and that the only “crime” we found was a delay, which was the result of external economic forces that affected our nation.
Rising material costs, a falling currency, the cascading effect of inflation and a changing economic landscape have all conspired to slow our ambitious effort to design and build a landmark property that not only surpasses the iconic Necom Tower. from 1979 as the highest and most luxurious. project in Nigeria, but also sets a benchmark for luxury living across Africa.
The last few days have been difficult for me and my business, due to a transaction we entered into a couple of years ago involving the sale of an off-plan apartment to one of our valued clients. Despite securing the land and obtaining all the necessary approvals, we encountered significant obstacles that have delayed the delivery of our project.
After numerous conversations and negotiations, the customer in question demanded a refund of his payment, which was originally made in Naira. At the time of the transaction, the exchange rate was £420 to the dollar; today, it has shot up to ₦1,750, creating a staggering deficit of ₦1,330. This raises a critical question: who will absorb this loss? Although exchange rate volatility is neither the client's nor our fault, it is a reality that deeply affects our operating expenses and capital expenditures, which are largely denominated in dollars.
Given these circumstances, it was very important for us to clarify our position with the FCID authorities regarding the allegations of obtaining money by false means, fraudulent misrepresentation and criminal breach of trust. This was a false accusation; We provide complete documentation to prove that these claims are unfounded, as the evidence provided to the FCID authorities provided real information about the transaction carried out. Our successful clearance with the FCID underlines our commitment to upholding our integrity. Addressing our customers' concerns is not simply a business obligation for me; remains a testament to our commitment to transparency and trust capital.
I received numerous advice to take a longer route to take legal action against this whole situation, but I WILL NEVER DO THIS. However, I chose a path rooted in dialogue and understanding. I met with the client involved and acknowledged that while the economic crisis and our delays may not be their concern, we were able to reach an amicable resolution.
It is no use saying that the biggest pressing challenge for all business owners in Nigeria today is how to deal with the relentless rise in material costs. To put things in perspective, when we started this journey two years ago, the price of cement was around ₦2,000; today, it has shot up to around ₦9,000. Steel prices have risen from ₦480,000, but today they are priced at ₦1.3 million. Furthermore, the costs associated with container clearance – major hurdles for import-export businesses – have soared: clearance of a 40ft container is now over £22m, compared to £4 million.
No one prepared us for the staggering devaluation of the naira against the dollar, which has soared from £360 to £1,750. Since 85 percent of our project costs are denominated in dollars; This increase in foreign exchange has severely strained resources and decreased investor appetite, contributing to project delays. Every week brings new challenges, but our unwavering dedication to bringing the iconic LeonardoBySujimoto project to life serves as a lesson for us as passionate and unlikely entrepreneurs, determined to overcome all obstacles while ensuring the successful completion of the project.
When we founded Sujimoto a decade ago, I started this journey with nothing more than a visionary mindset and a drum of audacity, I didn't even have the money to buy the first piece of land from Mymentor and Father Alhaji Saro (May his soul rest in peace). ). Without the support of wealthy relatives or influential neighbors, I paved my way with hard work and uncompromising honesty. I firmly believed that by uniting integrity with excellence, we could build a local brand with a global reputation that Nigerians would embrace and appreciate, and today I thank the Almighty that we have managed to do so.
While the vision for the 36-story LeonardoBySujimoto project is grand, it is not without its challenges. Navigating the complexities of the current economic landscape has presented us with numerous obstacles. However, our journey, from the successful Medici Residences in Ikoyi in 2014, to the soon-to-be completed LucreziaBySujimoto, a 15-story building on Banana Island, scheduled to launch by the end of Q4 2024, these 10 years of Consistency demonstrates our resilience and commitment to excellence.
In each case, we have faced skepticism and doubt, and many have questioned our ability to deliver. However, we have consistently maintained our commitment to integrity and excellence, ensuring our clients remain informed and supported throughout every process. The temerity to always tell the truth and uphold integrity at all costs and to make sure we were very transparent about where we were deficient, we forced ourselves to prioritize the well-being of our investors, not only exceeded expectations but also significantly improved their expectations. return on investment.
Despite the difficult economic conditions in Nigeria, which have forced several companies to close their doors, we remain determined and determined to begin construction of the ambitious LeonardoBySujimoto project before the end of November 2024. Today, the land in question is valued at approximately N17 billion, with the entire project worth over N180 billion; No amount of money is enough for us to destroy a project of that magnitude or the value we have built over the years.
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We remain unwavering in our determination to complete this ambitious project in less than 36 months, positioning it as one of the fastest and strongest civil engineering feats in Nigerian history, the tallest and most luxurious building in sub-Saharan Africa and the best investment. anyone can do.
As we approach the groundbreaking of this historic project, I want to extend my deepest gratitude to our investors and supporters. Your patience, understanding, and determined trust in us have been instrumental in our journey. I also extend my deep gratitude to the dedicated professionals at FCID who treated me with utmost respect and professionalism, which has clarified our path forward. To all the uncommon entrepreneurs facing challenges, may the Almighty continue to grant you strength and perseverance to weather every storm.
To the naysayers and cynics who doubted our vision, I personally assure you that in less than three years you will all witness the inauguration of the tallest and most luxurious building in Nigeria and all of sub-Saharan Africa.