Connect with us

News and Report

Union Bank In Trouble … As Multinational Oil Company Slams the Bank with N6.7 Billion Suit

Published

6 years ago

on

We gathered that One of the nation’s first generation Banks, Union Bank is in all sorts of bother as it scrambles to defend itself against a hefty N6.7 billion suit brought against it by a multinational oil company Petrocam Trading Nigeria Plc.

Bringing the case before the high court in Lagos, Petrocam’s lawyer Barrister Gboyega Oyewole (SAN) contended in the filed statement of claim that Union Bank flouted the joint venture agreement entered with the plaintiff to jointly collaborate in opening letters of credit confirmation lines for the importation of petroleum products.

The plaintiff averred that it had sometimes in 2014 secured an import finance facility from Union Bank for importation of petroleum products and raised letters of credit to utilize this import facility. The initial facility of $45 million was increased to $100 million. The company duly provided bank guarantees for the facility. There was also an understanding that the facility would be repaid from sales proceeds and oil subsidy reimbursements.

Under the agreement, Union Bank would secure foreign exchange for the company to enable it finance its international oil purchases. The company however claimed that the bank defaulted by failing to secure forex from the CBN during the 2014/.2015 period when 90 percent of the company’s import transactions were being conducted thereby causing the company to suffer huge losses.

It further claimed that out of the $76 million it required to finance the transactions covered by the agreement, Union Bank was only able to produce about $22 million, meaning that Petrocam could not complete a large percentage of the deals, leading to huge profit loss.

The company contended further that Union Bank failed to bid for foreign exchange when the exchange rate was between N155-160 to the dollar but only bided when the rate had increased to N288-320 per dollar, thereby deliberately inflating the costs of maintaining the dollar credit facility.

In light of these claims, Petrocam is seeking a declaration that Union Bank’s breach of duty under extant laws resulted in unlawful debits and exorbitant interest charges on the company’s current accounts with the bank, and an order compelling the bank to reverse all wrongful debits on the company’s current account.

It is asking the court to compel Union Bank to credit the company’s current account to the tune of N6.7 billion plus interest on the sum at the rate of 22% per annum from commencement of suit to date of judgement, and thereafter &% per annum from date of judgement to final liquidation of the sum. It is also seeking N50 million in general damages.

Rather than mount a defence, Union Bank has however launched its own suit against the company and its MD Patrick Ilo, claiming N10 billion and $55.3 million plus 27% interest per annum vand N20 million as general damages. This new suit which is before the federal high court in Lagos has however been contested by Petrocam which has filed a preliminary objection. It is asking for the case to be thrown out because of its own case which is pending before a Lagos High Court.

Source: The Lagos Times

Related Topics:
Continue Reading
Advertisement

News and Report

Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

Published

5 hours ago

on

November 7, 2024

By

 

Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

Continue Reading

News and Report

Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

Published

18 hours ago

on

November 6, 2024

By

The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

Continue Reading

News and Report

Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

Published

19 hours ago

on

November 6, 2024

By

President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

Continue Reading

Trending