Court Restrains Emeka Offor from Operating Bank Account

Godwin Nlemchukwu

In what appears as a game of wits, Unity Bank of Nigeria Plc has got a court to stop oil magnate and government contractor, Sir Emeka Offor, from accessing a pending payment of $8,450, 000 because of his huge indebtedness to the bank.
Justice Hadiza Shagari, of the Federal High Court in Ikoyi, Lagos, restrained Offor and three others who are directors of a limited liability company, Kaztec Engineering Limited (KEC) from withdrawing or dealing with any part of the $8.45million or any monies whatsoever, standing to the credit of the company accounts with eight commercial banks listed before the court.
Other directors affected by the order are: Kester Enwereome, Tochukwu Odukwe, and Monito Barraquias. A sister company to Kaztec Engineering Limited, Interstate Electrics Limited, and three Ocean going vessels – MV Ekulo Chinyere, MV Ekulo Spirit and MV Ekulo Explorer are also co -defendants in the suit.
The Court also issued order of interim attachment of all payments due from Shell Petroleum Development Company of Nigeria (SPDCN) to KEC in respect of contract for the Trans-Niger pipeline project from Oghale to TP1, pending the provision of satisfactory and sufficient security to secure Unity Bank’s claim in the sum of N6, 074, 499, 879.15 and $133, 057, 709.96 together with 21 per cent interest.
The Court further directed SPDCN and eight commercial banks listed before the Court to prepare and file, on oath within seven days, an affidavit disclosing KEC’s balance in their account or any balance standing to the credit of the company and Interstate Electrics Limited Company.
While acceding to the request of the plaintiffs, the judge ordered them to file undertaken for damages, to indemnify the defendants against any loss they might suffer if the order is found to be frivolous.
The Court order followed a motion ex parte application filed and argued by a Lagos lawyer, Barrister Oluwakemi Amoeba SAN, on behalf of Unity Bank.
He claimed that the two limited liability companies – KEC, Interstate Electrics Limited and their four Directors – Sir Emeka Offor, Kester Enwereome, Tochukwu Odukwe, and Nonito Barraquias “are jointly and severally heavily indebted to Unity Bank Plc in the sum of N6, 074, 499, 879.15 and $113, 057, 708.96, being the total outstanding loan under various facilities granted to them at their request which they have failed to repay despite repeated demands”.
According to an affidavit in support of the motion ex parte sworn to by the legal officer of Unity Bank Plc Mr Ndubuisi Ugbede and filed before the court by Atoyebi, the deponent averred that sometime in June 2014 Unity Bank Plc at the request of KEC granted a contract facility in the sum of N3.4billion to execute an Addax Petroleum contract for the fabrication and installation of offshore pipeline and top-site for Nigerian National Petroleum Corporation (NNPC). At the expiration of the tenor of the loan, the company refused to repay, and the outstanding accumulated to N5, 823, 402, 667.72.
Prior to the initial loan of N3.4billion granted to the company, Unity Bank Plc on March 6, 2012, issued three separate bank bonds in the sum of N54, 332, 823.13, N33, 072, 156.25million, and N154, 692, 334 for the importation duties of the company’s three vessels. And it was agreed that proceeds from the Addax contract would be used to repay the loan.
The Customs bonds expired in December 2014, and the company still refused to pay the loan.
Mr Ugbede added that sometimes in 2013, pursuant to the Federal Government’s decision to unbundle the Power Holding Company, it invited bids from members of the public to acquire stake in the company. KEC resolved to purchase some shares in Enugu Disco through its sister company Interstates Electrics Limited. They were chosen as preferred bidders for 60 per cent of the shares, and part of the acquisition condition was paying down 60 per cent of the shares $126million. The company was able to source for $24, 500, 000. Then it approached the bank to assist in providing the remainder of $101, 500, 000.
Consequently, by a separate transaction covered by a Bridge Facility Agreement between the bank and African Export Import Bank (AFREXIM) a loan facility in the sum of $70millon was secured from AFREXIM, on behalf of the company, to meet its financial obligation to the Bureau of Public Enterprises (BPE) for the acquisition of the 60 per cent share in Enugu Disco. In addition to, $70million loan the two companies also requested for and were given $31.5million by the bank.
On October 1, 2016, the bank received an order of Mareva Injunction issued by a Federal High Court, at the instance of one Pan African Capital, freezing the sum of N1, 378, 198, 188.60 representing proceeds from the two companies operation meant for remittance to AFREXIM by Unity Bank to meet the companies’ obligation under the various loan agreements.
Consequently, the order prevented the bank from performing its obligations under the said agreement by paying the proceeds to AFREXIM.
From the totality of the various facilities granted to the defendants, the following sums are still outstanding from the defendants to the plaintiff N5, 594, 226, 296.43 and $113, 057, 709 .96, as at October 2016.
Mr Ugbede noted that on or about August 16, 2016, KEC was awarded a contract for the provision of engineering and construction services for the Trans-Niger Pipeline from Oghale to TP1 at N5, 341, 213, 317.21billion and $50, 073, 874.85million by SPDCN.
By its letter dated January 22, 2014, addressed to Unity Bank, in which KEC agreed to domicile the proceeds of the Shell/KEC contract with the bank but later learnt that the company had concluded plans to divert the funds to another bank. The bank then wrote a letter to Shell petroleum, drawing its attention to the agreement with KEC.
Consequently, the bank believes that the sum of $8,450, 000 in the custody of Shell Petroleum is now due for payment to KEC, and that the money will go far in liquidating the defendants’ indebtedness to Unity Bank.
Atoyebi argued that the money is now in imminent danger of being dissipated and removed out of the jurisdiction by the defendants, unless the court restrains them.
The case has been adjourned till 1st of February, 2017 for hearing.