Two limited liability companies Sunlek Investment Limited and Sunsteel Industries Limited have slammed N7billion suit on First City Monument bank Plc FCMB over alleged breach of contract.
In a 126 paragraphs of statement of claim accompanied by another 27 paragraphs of a witness sworn to on oath and filed before a Federal high court sitting in Lagos south west Nigeria by a Lagos lawyer Mr. John Olusegun Odubela SAN, the two companies alleged that they operated loan accounts with First City Monument Bank upon which disbursement was made for all letters of credit /loan facility granted to them by the bank for the importation of raw materials.
However, since 23rd May, 2013 when the bank entered into an agreement to grant them loan, and open a loan facility account for them till date, they have not been given the particulars of the loan facility account neither has any statements of account of this loan account been made available to them.
The plaintiffs companies alleged further that by commitment letter dated 23rd May, 2013 and the term sheet for facility duly signed /executed by the two parties, FCMB committed and undertook to fund on fully-underwriten basis the debt finance of $1,500,000 and N422,500,000. Thereafter, other loans facilities were granted to the companies by the bank.
The total amount of the letters of credit opened by the bank in favour of the companies is $8,003,247.5 out of which said sum the companies contributed 10% based on the terms of the grant of the various offer for facility utilized to open letters of credit from 22nd ,March 2013 to September, 2017. The loans facilities were well secured.
The plaintiffs contended that from the available records available to them, it was reflected that they have fully repaid their indebtedness to the Bank.
However, the companies were bewildered when they received the bank’s letter that their indebtedness to the bank as at 14th of March, 2019 is in the sum of N1,129 884,104.72., that the debt should be liquidated within 14 days, despite the fact that they have fully repaid the loan they took from the bank.
Consequently, they engaged the services of accounting firm to audit their account,the plaintiff by their letter and their solicitor’s letter requested for statements of accounts of the loan accounts from the bank, but the bank has deliberately refused, failed and neglected to make available the said statement of account. However from the forensic analysis of their accounts, the plaintiffs contended that they are not in any way indebted to the bank in the sum of N1,129,884,104.72.
From the forensic audit report it was discovered that there were two transactions carried out on letter of credit, wherein substantial volume of the product were damaged.
The value of items purchased by the letters of credit was in the sum of $1,999,965 for the importation of cold rolled steel strips, galvanized steel strips and Zinc wire from Chemetals(HK) limited Unit 1105H/F Lippo Center 89,Queens Way Hong Kong. FCMB is solely and unilaterally liable to undertake all the risk Insurance policy Clause A for the consignment/raw material to be imported by virtue of the letter of credit.
The bank solely negotiated insurance policy obtained for the products purchased and appointed Mansard Insurance Plc to provide insurance cover Clause C for the importation of the consignment. Upon taken delivery of the consignment after payment of custom duties and port charges, it was discovered that a large volume of the said consignment were in various forms of damaged conditions.
The plaintiffs informed the bank about the damaged consignment and the need to pursue insurance claim for the damage consignment,the bank requested for documents from the officers of the plaintiffs which was sent to them to pursue the claim.
However, the agent of the bank sent a report to the plaintiffs to inform them that from the nature of damages to some of the products, the insurance policy, being a Clause C policy as undertaken by the bank is not sufficient to cover the nature of loss from the said damages to the products. The total value of the consignment damaged is in the sum of $628,386.23 and N336,136.692.66. The bank ought to have undertaken an all risk insurance policy cover with the insurance company. As a result of the damages to the consignment,they were not fit for use and could not be refined in the plaintiffs machine and remained in the plaintiffs factory as junk or waste material.
The plaintiffs averred that they have suffered financial loss as a result of the breach of contract in the sum of N884,934,268.56 which has negatively affected their business operation since 2014 till date. The plaintiffs averred that they are entitled to claim damages for breach of contract against the bank who had by its various acts of breaches of the various letters of offer for facility caused great loss to their business. Consequently the plaintiffs claim against FCMB jointly and severally are as follows:
General damages in the sum of N5billion.
A declaration that the plaintiffs are not indebted to the bank in any sum premised on the fact that they have settled all their indebtedness on the facilities granted to them by the bank. A declaration that the bank breach the terms of letter of credit and is liable for the loss of the letters of offer on importation, in the sum of $1,999,865.
A declaration that the bank is liable to refund to the plaintiffs N884,934,298.56,being the losses uncured on the damaged consignment purchased through letters of credits,and failure and refusal of the bank to obtain an all risk insurance policy for the shipment of the said consignment.
An order for the payment of N826,996,135.00 being the total sum wrongly debited on the plaintiffs account by the bank. An order of the court restraining FCMB from appointing and or registering any instrument of appointment of an official receiver or any instrument whatsoever made for the purpose of enforcing the security for the payment of alleged indebtedness in the sum of N1,129,884,104.72 being allegedly claimed against the plaintiffs by the bank. Cost of litigation assessed at N250 million.
Alleged N29bn Fraud: You Have A Case To Answer, Court Tells Nyako, Son
Justice Okon Abang of the Federal High Court sitting in Abuja has ordered Murtala Nyako (retd.) to enter his defence in the alleged N29 billion money laundering charge preferred against him by the Economic and Financial Crimes Commission.
Justice Abang gave the order on Monday while ruling on the no-case submission filed by the former Adamawa governor, his son Abdul-Aziz and other defendants in the matter.
The other defendants are Zulkifik Abba, Abubakar Aliyu, Blue Opal Ltd, Tower Assets Management Ltd and Crust Energy Ltd.
The judge said that he had painstakingly perused the evidence given by the 21 witnesses called by the prosecution and was of the view that the prosecution had established a prima facie case against the defendants.
“I have calmly, carefully, and painstakingly scrutinised the evidence adduced by the 21 witnesses in chief and under cross-examination including the oral and written arguments of all the defendants.
“I have again carefully and painstakingly considered the evidence of the 21 witnesses and the massive documentary evidence and the extrajudicial statements of the defendants.
“I have carefully considered the legal arguments of all the counsel for the defendants, their written and oral arguments, and the argument of the prosecution in this ruling.
“It is my humble but firm view that the prosecution has established a prima facie case against the defendants and they are required to enter their defence immediately.”
The judge held that the no-case submission filed by the defendants lacked merit and he accordingly dismissed it.
He adjourned the matter until October 4, October 5, October 7, and October 8 for the defendants to open their case.
The EFCC is prosecuting the former governor and his son, Abdul-Aziz; two companies, Sebore Farms and Extension Ltd and Pagado Fortunes Ltd, over money laundering offences.
The EFCC had arraigned them on a 37-count charge of criminal conspiracy, stealing, abuse of office, and money laundering.
The trial began on July 7, 2015, and the anti-graft agency closed its case on November 3, 2019, having called 21 witnesses to establish its case against the defendants.
Instead of opening their defence, the defendants elected to file a no-case submission in which they argued that the facts adduced by all the witnesses called by the prosecution did not prove the allegation against them.
Kano Police Arrest 10 For Allegedly Hacking Bank Accounts
The Public Relations Officer, DSP Abdullahi Haruna-Kiyawa, disclosed this in a statement in Kano.
“On July 14, at about 23:50hrs, a team of policemen led by DSP Kabir Wali working on credible information arrested the suspects in a hotel in Kano metropolis.
“The suspects are Umar Aminu, Muhammad Muhammad, Kabiru Idris, Salim Sani, Umar Muhammad, Yusuf Ibrahim, Aminu Lawan, Jibril Aliyu, Hauwa Abubakar and Aisha Abubakar.
“They all reside in Sheka quarters, Kano and were arrested in connection with electronic card-related fraud,” Haruna-Kiyawa said.
He said that the suspects confessed to hacking various individuals bank accounts and withdrawing various amounts of money.
The Commissioner of Police, Mr Sama’ila Shu’aibu-Dikko, he said, has ordered for discreet investigation into the matter.
He added that the suspects would be charged to court after investigations.
In a related development, Haruna-Kiyawa confirmed the arrest of 21 armed robbery suspects, seven kidnap suspects, 23 drug dealers, 18 suspected fraudsters, five vehicle theft suspects, 11 cattle rustlers and 140 notorious thugs.
He said that the suspects were arrested in the 44 Local Government Councils of the state under a “clearance Operations” to rid the state of all forms of crimes.
The spokesman said that nine locally-made guns, four vehicles and three motorcycles were recovered during the operation.
He said the police also recovered 265 knives, 28 scissors, 80 sharp rods, 145 parcels of dried leaves, 176 mobile phones, six cows and N3 million, among others during the operations.
Breaking: Sierra Leonean Woman, Nora Johnson, Co-Conspirators Refund N507m
Sources within the Economic & Financial Crimes Commission (EFCC) have confirmed that N507m has been recovered from Nora Johnson, the Sierra Leonean woman involved in a case of multi-million naira fraud against her former employers, and her co-conspirators
It was gathered that while Nora Johnson refunded N100m on account of her involvement in the fraud to the EFCC, some of the conspirators in the years-long racket refunded N400m, another accused person refunded N7m on behalf of Nora Johnson.
However, Nora Johnson, according to the EFCC source, reneged on paying the expected balance, which led to her present predicament.
Nora Johnson came into public consciousness days back when she did a video wailing about the confiscation of her house.
It would emerge that Justice A. Lewis Allagoa, Presiding Judge, Federal High Court (Lagos Division) had ordered that the EFCC should take possession of all properties and bank accounts owned by Johnson and five others.
This followed an application on behalf of the Federal Government of Nigeria by the EFCC, which charged her to court and subsequently led to the interim forfeiture of her assets on the order of Justice A.M. Liman on February 16, 2021.
However, on March 21, 2021, Ms Johnson and the other respondents: Babajide Aremu Johnson, Olabose Ibrahim Falobi, Steve Nnamdi Izebu, Steve Ibem and Bakoliza Limited went to court to suspend or stay execution on Justice Liman’s order. They had sought the following: an order to discharge the interim order of forfeiture of assets, an order discharging the final forfeiture and any other orders as deemed fit by the court.
In his judgment after hearing J.O. Adeyemi Esq, Counsel for the Applicant/Respondent and V.C. Nwokafor Counsel for the 1st, 2nd and 6th Respondents/Applicants, Justice Allagoa ordered that the motion of Ms. Olumide and the other respondents dated March 12, 2021, be set aside.
The judgment, delivered on July 14, 2021, stated further: “That the order of Justice Liman stands in all its ramifications” and “That the Economic and Financial Crimes Commission (EFCC) are entitled to take possession of all that property subject of the Order of my Lord A.M. Liman on the 16th day of February 2021.”
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