BIPC Sues NDIC, One Other Over Alleged Illegal Sale of Shares
The Benue Investment and Property Company (BIPC) has dragged the Nigeria Deposit Insurance Corporation (NDIC) and All States Trust Bank (in liquidation) before the Federal High Court Makurdi over alleged illegal sale of shares.
BIPC is demanding a compensation of more than N10.3 billion for an alleged breach of contract. It would be recalled that the case, which was instituted in 2011, could not continue NDIC requested for an out-of-court settlement, and the parties went to the Arbitration Panel in Abuja.
The panel, however, could not resolve the matter, and the NDIC later preferred to continue with the case in court. When the case came up for hearing on Wednesday, counsel to the plaintiff, Mr Douglas Pepe (SAN), called one of the chief witnesses, Mr Paul Agu, a former staff member and MD/CEO of the company, to testify.
Agu told the court that the plaintiff applied for a loan facility of N550m from the Federal Mortgage Bank and pledged some of her shares to All States Bank for the bank to guarantee the loan.
The witness said that the money was to come through the liquidated bank, adding that the bank was to take her commission and stand as their guarantor before the mortgage bank.
He explained that the bank failed to meet her contractual agreements with the plaintiff yet started deducting charges from the account. Agu further said that the bank also failed to complete the process of opening the letter of credit as required in such a case. Pepe, through his star witness, tendered 32 documents to support their position.
Among the documents tendered were the bank statements of the plaintiff in All States Trust Bank between August 1, 2002 and December 31, 2003. He also tendered details of transfers of shares sold by the respondents and closed their case.
The plaintiff averred that the respondents, who did not fulfil their part of the contract agreements, charged them arbitrarily and sold their shares placed in their custody as collateral.
“My lord, we urged this honourable court to order the respondents to pay N2.6 billion as lost income for inability to trade with stocks that were pledged as collateral and have been with them since 2002.
“They should also pay the shares, which in 2007 were valued at over 740 million at the time of transaction and appreciating to over N5.5 billion in 2007.
“They should also pay N99.5 million, being proceeds of the shares illegally sold, and N62.8 million, being the value of lost dividends and bonuses over the period.
“We also urge the court to order the respondents to pay N2 billion as general damages,” he pleaded.
However, counsel to respondents, Mr Aondover Iorngee, after cross-examination, requested a date to file his clients’ defence. After listening to the parties, the presiding judge, Justice Rafael Egbe, adjourned the case to May 15 for the respondents to file their defence.
