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Access Bank, Don Etiebet Fight over N2.4Bn Debt

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Federal High Court in Lagos on Monday refused to grant an application by Chief Don Etiebet, former Petroleum Minister’s company, seeking to stop Access Bank Plc from taking over his property known as Etiebet’s Place on Mobolaji Bank Anthony Way, Ikeja, Lagos, Southwest Nigeria.

 

This is coming as Etiebet, also petitioned Securities and Exchange Commission (SEC) and asked the apex regulatory body of the capital market to nullify the highly publicised landmark merger between Access Bank and Diamond Bank.

 

But yesterday, Justice Mohammed Liman in his ruling on the application by Etiebet against Access Bank, also refused an application for stay of execution of a December 17, 2018 judgment of Justice Ibrahim Buba, which empowered Access Bank to take over the property located on Mobolaji Bank Anthony Way, Ikeja, Lagos, in the name of Etiebet’s company, Obodex Nigeria Limited.

 

The bank had dragged Obodex Nigeria Limited before the court over an alleged debt said to be in the tune of N2.4 billion.

 

The firm had challenged the court’s jurisdiction to hear the suit.

 

Justice Buba, last December 17, dismissed the firm’s objection and ruled in the bank’s favour.

 

Access Bank subsequently took over Etiebet’s Place and appointed Mr. Kunle Ogunba, Senior Advocate of Nigeria, as receiver/ manager to manage the property towards recovering the alleged debt.

 

Dissatisfied, Obodex Nigeria filed an appeal as well as an application for stay of execution of the judgment.

 

Through its lawyer, Mr. Dele Adesina (SAN), it sought an order restraining Ogunba and his privies or assignees from, “advertising or offering for sale, selling, mortgaging, transferring, alienating or otherwise interfering with the applicant’s equitable right of redemption on the property situated and lying at 21 Mobolaji Bank Anthony Way, Ikeja, Lagos, also known as Etiebet’s House, pending the hearing and final determination of the applicant’s appeals.”

 

While urging the court to grant his application, Adesina said, “I urge your Lordship to grant a stay of proceedings and stay of execution so that we’re not foisted this court with a fait accompli.”

 

But Access Bank, through Ogunba, opposed Obodex’s application, saying it was “totally misconceived”.

 

He said the receiver-manager was already in control of the applicant’s property, hence the application was belated.

 

“The defendant wants to eat his cake and have it. It’s very reprehensible. They admitted the debt and pleaded for time. They signed a mortgage. We urge your Lordship to discountenance their application,” Ogunba said.

 

Meanwhile, Etiebet, wants the highly publicised landmark merger between Access Bank and Diamond Bank nullified.

 

In the petition to the Securities and Exchange Commission (SEC), Etiebet drew the attention of SEC to the fact that Access Bank and its Managing Director Herbert Wigwe and other executive directors are currently facing criminal charges before the High Court in Shagamu, Ogun State and the High Court in Ikeja, Lagos.

 

The petition dated March 19, 2019, said his decision to seek for the nullification of the merger was in pursuant to the provision of Section 124 (3) of the Investment and Securities Act 2007 which ‘empowers any person to voluntarily file any document, affidavit, statement or other relevant information in respect of the merger’.

 

He accused the bank of hiding the financial fraud cases it has from the regulators, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

 

He insisted that if the regulators had got wind of the case which the bank had hidden from them while seeking their approval, the regulators would not have given approval for the merger.

 

Etiebet, who is a shareholder in Access Bank, had last month petitioned SEC on his position against the merger based on the fraud case his company has against the bank, including another in Ogun State involving a steel company.

 

He also based his decision to seek the nullification of the merger on the provision of Section 127 of the Investment and Securities Act 2007, which states that “The Commission may revoke its own decision to approve or conditionally approve a small, intermediate or large merger if the decision was based on incorrect information for which a party to the merger is responsible and the approval was obtained in deceit”.

 

 

 

 

 

 

 

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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