Femi Otedola, the chairman of FBN Holdings and majority shareholder of Geregu Plc, and a few of his firms have opted for an out-of-court settlement with Zenith Financial institution Plc.
Mr Otedola was concerned in a authorized dispute with the financial institution over alleged “fraudulent transactions” on his firm’s accounts.
Courtroom papers obtained by PREMIUM TIMES confirmed the Federal Excessive Courtroom of Nigeria, Lagos Division, the place Mr Otedola and his firms filed the swimsuit towards the lender on 12 March, dismissed the case on Thursday, 13 June, on receiving a discover of discontinuance from the plaintiffs.
Zenon Petroleum & Gasoline Restricted, Seaforce Delivery Co. Restricted, Luzon Oil & Gasoline Restricted, Garment Care and Mr Otedola have been the plaintiffs, whereas Zenith Financial institution, Quantum Zenith Securities & Funding Restricted, Veritas Registrars Restricted and Central Securities Clearing System Plc have been the defendants.
In accordance with a courtroom doc, Justice A.O. Faji discontinued the lawsuit after the counsel for the primary to 3rd defendants and the counsel for the plaintiffs requested for the matter to be dismissed, with the “counsel for the fourth defendant not objecting.”
Particulars
Mr Otedola and his firms initiated authorized motion towards Zenith Financial institution and the opposite defendants in March, claiming that the lender disposed of his shares within the financial institution with out authorisation, manipulated the businesses’ financial institution accounts and fabricated some paperwork to hide the alleged crimes.
He accused the lender of wrongfully calculating his money owed earlier than promoting them to the Asset Administration Company of Nigeria (AMCON), which the financial institution set as much as purchase the non-performing loans within the books of banks with the intention of recovering them thereafter.
Zenon had claimed that the letters of credit score that led to the dangerous loans AMCON acquired have been opened earlier than the company took over the debt in December 2011. The corporate stopped working the account after AMCON’s intervention.
In accordance with a doc seen by PREMIUM TIMES, the overdue on Zenon’s account on the level AMCON took over the liabilities was N39 billion. Zenon stated Zenith Financial institution supplied the debt to the company at N49 billion. AMCON ended up paying the financial institution N44.1 billion for the debt.
Sources with information of the matter instructed PREMIUM TIMES in Might that Mr Otedola selected to take authorized motion towards the financial institution after a number of failed reconciliation makes an attempt. Through the month, each events held three conferences, none yielding the specified outcomes.
“It’s clear that Zenith Financial institution Plc shouldn’t be honest in resolving this problem out of courtroom and as such a time-wasting train,” one of many sources stated.
“At this juncture, we’ve resolved to pursue our claims by way of the judiciary, regulation enforcement, the CBN and the courtroom of public opinion as we all know that our claims are very real.”
In accordance with a doc detailing the deliberations of each events at a gathering held on 20 Might, Zenith Financial institution agreed to refund the N205 million it wrongfully debited to Zenon’s account with compounded accrued curiosity utilizing a bankdraft.
Seaforce Delivery Firm Restricted, owned by the billionaire tycoon, stated Zenith Financial institution introduced some statements of account claiming that it owed the financial institution N5.9 billion as of February 2024. It added that Zenith Financial institution deserted the declare after the corporate confirmed proof that Seaforce’s account was in credit score as of 2018.
A supply stated Zenith Financial institution offered the 415 million shares that Zenon held in Zenith Financial institution for N4.9 billion in December 2010, noting that the shares have been repurchased within the following month for N5.4 billion, triggering a internet lack of N142.9 million.
He additional disclosed that associated transactions have been carried out on Mr Otedola’s account, inflicting a internet lack of N61.5 million and a mixed lack of N205.4 million in each circumstances.
Isyaku Mohammed, the commissioner of police in command of administration on the Power Prison Investigation Division, summoned the managing director of Zenith Financial institution on 16 Might over what he described as an alleged unauthorised debit to Zenon’s account.
“This workplace is investigating an alleged case of fraudulent misrepresentation, wrongful debit and unauthorised transactions referred from the assistant inspector common of police, FCID Annex, Alagbon Shut, Ikoyi, Lagos, involving your monetary establishment,” the letter, a duplicate obtained by PREMIUM TIMES, learn.
“A summary of the petition at disposal reveals that someday in 2011, an unauthorised withdrawal was carried out on the account of Zenon Petroleum Gasoline Restricted with quantity 10110385211 to the tune of Two Hundred and 5 Million, Three Hundred and Forty-six Thousand, 5 Hundred and Seventy-Three Naira (N205,346,573.00) with out justification.”
The letter said that Zenith Financial institution wrongfully opened some letters of credit score after AMCON acquired the debt in 2011, which led to unsolicited mortgage disbursement that additional plunged Zenon into indebtedness.
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