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Court endorses AMCON’s disposal of Abuja properties associated with a Bureau de Change (BDC) operator
The Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, has mandated the Asset Management Corporation of Nigeria (AMCON) to auction properties tied to Farida Bureau de Change Limited for failing to repay a loan of N194.018 million to the now-defunct Platinum Habib Bank Plc.
In his ruling, Tsoho emphasized, as reported by Nairametrics, that defaulters neglecting loan repayments have significantly contributed to the collapse of multiple financial institutions over the years.
AMCON’s legal representatives, Ehi Barnabas and Ekwere Nsikanabasi Esq, filed a suit (no: FHC/ABJ/CS/ 889/16) in the Abuja court, seeking the sale of assets linked to the BDC operator due to their failure to settle loans granted to them.
They asserted that the defendant, along with two others, owed the claimant a sum of N194,017,765.89, representing their outstanding debt to AMCON as of October 4, 2016, stemming from overdraft facilities extended to them by Platinum Habib Bank Plc on April 29, 2008, and July 29, 2008.
The claimant further argued that the first and second defendants are prohibited from disposing of any interest in the properties utilized as collateral.
AMCON therefore sought an order of sale of the defendants’ properties pledged as security for the overdraft facilities covering the under listed properties:
“i. An undeveloped plot of land lying and situated at Plot No. LD 1014 Cadastral Zone A-09 Guzape District Abuja.
A fully developed property consisting of 4 Nos of semi detached 3 bedroom flat lying and situate at Plot No. 135, Kugbo Extension Layout, Abuja.
iii. An undeveloped plot of land lying and situate at No. 133 Kugbo New Extension Layout, Abuja.”
But the defense team, led by John Adam Okloho Esq, denied owing the bank in dispute or AMCON.
He explained that no money had been credited to his clients as consideration resulting from the loan agreement.
“There was no loan agreement between the 1st, 2nd defendants and the bank as being alleged by the claimant.
“The claimant has failed to produce before the court title documents allegedly pledged as collateral for the loan because the documents have at all times been in the possession of the defendants,” he submitted.
Judge’s statement:
According to Justice Tsoho’s ruling dated March 28, 2024, and as reviewed by Nairametrics, he emphasized that the defendant must provide clear responses to the facts presented by AMCON and cannot evade them.
He indicated that when the plaintiff has expressly stated claims and facts, the opposing party must respond by either acknowledging or denying them explicitly; otherwise, they are deemed to have admitted AMCON’s claims.
“A community reading of Exhibit B (especially Pages 1 to 5, Board Resolutions of 1st Defendant dated 27/04/2008 and 30/07/2008, AMCON & BANK PHB PLC Loan Purchase & Limited Service Agreement of 10/12/2010) provides good nexus with Exhibit E.
“Besides, the Claimant by demand letters dated 1/11/2012 and 15/01/2014 to the 1st Defendants as to outstanding indebtedness, attached the letter of Offer of Overdraft Facility by Bank PHB to 1st Defendant.
“Curiously, there is no hint of the 1st Defendant having denied or contested the Demand Notices as to its/her outstanding indebtedness.
“It is noteworthy that the Request for Loan Facility (Exhibit B) is signed by Aliyu Habu Fari (2nd Defendant) as Chairman,” Tsoho added saying evidence showed that the defendants defaulted in their loan agreement with the bank.
The judge subsequently granted AMCON’s prayers.
Tsoho said,
“This leaves no doubt that Alhaji Aliyu Habu Fari (2nd Defendant) is the alter ego of the 1st Defendant and did in fact, apply for the loan facility on behalf of the company.
“To that extent, the frenzied arguments canvassed by the 1st and 2nd Defendants to absolve themselves of liability in this case, amounts to desperately capitalizing on legal technicality, but which cannot stand.
“By their own admission, the 1st and 2nd Defendants opted for the loan agreement and which preliminary requirements they obliged.
“Much like somebody buying a brand new car, the bank binds its customers to a terms-of-service agreement when they take a loan; their collateral guarantees that the bank will be indemnified should they fail in keeping the terms (It includes stipulations such as the inability to repay capital and the agreed interest).
“In the past, if the bank learned that those terms had been violated, they had to sue, or threatened to sue after considering possible restructuring of the facility.
“This practice had hitherto caused many banks to fail. Nowadays, the claimant, AMCON, has the sole mandate to take over those bad debts and to initiate proceedings leading to recovery.
“As it stands, this court frowns at the antics of the 1st and 2nd Defendants which have the unmistakable stench of evasiveness that was characteristic of the era before the establishment of AMCON.
“Accordingly, Reliefs 1, 2, 3 and 5 of the Claimant’s Claim dated 04/11/2016 but filed on 07/11/2016 are granted as prayed.”
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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