Benue: BIPC sues NDIC, one other over illegal sale of shares, demands over N8.6bn

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 the alleged illegal sale of shares.

The News Agency of Nigeria (NAN) reports that the case, which started in 2011, could not proceed at some point because the NDIC requested an out-of-court settlement, leading the parties to an Arbitration Panel in Abuja.

NAN also reports that the panel could not resolve the matter as the NDIC later opted to continue with the case in court.

When the case came up for hearing, counsel to the plaintiff, Douglas Pepe, SAN, called one of their key witnesses, Mr. Paul Agu, a former staff member and MD/CEO of the company.

Agu told the court that the plaintiff applied for a loan facility of N550 million from the Federal Mortgage Bank and pledged some of its shares to All States Bank (in-liquidation) to guarantee the loan.

He explained that the money was to be disbursed through the liquidated bank, which was to deduct its commission and act as a guarantor before the mortgage bank. However, the bank failed to meet its contractual agreements with the plaintiff and began deducting charges from the plaintiff’s account.

Agu further stated that the bank also failed to complete the process of opening the letter of credit required in such transactions.

Pepe, through his star witness, tendered 32 documents to support their claims. Among the documents submitted were the plaintiff’s bank statement with All States Bank (in-liquidation) covering the period between August 1, 2002, and December 31, 2003.

He also tendered details of the transfers of shares sold by the respondents and subsequently closed their case.

However, the respondents, represented by Aondover Iorngee, requested a date for their defense after cross-examining the witness.

NAN reports that the plaintiff had dragged the respondents before the Federal High Court in Makurdi over a breach of contract and the sale of shares.

The plaintiff in the suit claimed that it applied for a loan facility of N550 million from the Federal Mortgage Bank and pledged some of its shares to All States Bank (in-liquidation) as collateral.

The plaintiff further alleged that the respondents, who did not fulfill their part of the contract, charged them arbitrary fees and sold the shares placed in their custody as collateral.

They, therefore, urged the court to order the respondents to pay N2.6 billion as lost income for their inability to trade stocks pledged as collateral since 2002.

They also demanded payment for the shares, which were valued at over N740 million at the time of the transaction in 2007 and had appreciated to over N5.5 billion by 2007.

Additionally, they demanded N99.5 million as proceeds from the shares illegally sold and N62.8 million as the value of lost dividends and bonuses over the period.

The plaintiff also asked the court to order the respondents to pay N2 billion as general damages.