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Ecobank vs Honeywell: Court rules on a settlement agreement

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5 years ago

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The Honeywell Group Friday, emerged victorious in its protracted legal dispute with Ecobank Nigeria Limited, with the judgment delivered by the Federal High Court, Lagos in which the court held that Honeywell’s payment of N3.5 Billion between 2013 and 2014 constitutes the full and final settlement of its indebtedness to Ecobank.

Trial judge, Justice Olayinka Faji, in his judgmenr held that there was a valid agreement reached at various meetings between representatives of Honeywell and Ecobank on July 22, 2013 and in line with the agreement, Honeywell made payments to the bank in order to settle its indebtedness. However, same could not be said of Ecobank which rather than keep to the terms of the sgreement, sought to introduce new terms. The court held that all through the course of the instalmental payments being made by Honeywell, Ecobank did not at any time raise any objections to the payments. The court held that the amount now being claimed by the bank was not at any time mentioned in the meetings or series of correspondence with Honeywell. Meanwhile, Ecobank has said it will appeal the judgment of the court, saying it strongly disagrees with the decision of the court. It will be recalled that Anchorage Leisures Ltd, Honeywell Flour Mills Plc., and Siloam Global Limited (all members of the Honeywell Group), in August 2015, instituted a suit before the court in Lagos seeking the determination of whether or not the companies are truly indebted to the bank following the payment of the sum of N3.5 billion as full and final settlement of their obligations to Ecobank, based on a mutual agreement between Honeywell and Ecobank. Testifying in the course the trial, Honeywell Group’s Head of Treasury and Finance, Oluwakemi Owasanoye told the court that by an agreement reached at a meeting held on July 22, 2013, the bank agreed to merge the collective indebtedness of Honeywell’s three subsidiaries, which amounted to N3.5billion. Owasanoye added that part of the agreement reached with the bank was that N500million must be paid immediately, while the balance of N3billion would be paid before the exit of the Central Bank of Nigeria, CBN examiners from the bank. MAccording to her testimony, Honeywell complied with the terms of the agreement, and thereafter, wrote to inform the bank of its compliance and the need for the bank to formally discharge the company of any further obligation. She stated that the bank in its reply to the letter did not raise any objections. Honeywell, she said, was however, surprised when the bank proceeded to demand for further payments in respect of the debt which had been fully liquidated for over a year. She stated in her testimony that when the dispute arose, the Company referred the matter to the Bankers’ Committee which resolved the matter in favour of Honeywell. In his restimony, Ecobank witness, Mr Elemi Agbor, Head of Corporate Communications of the bank, while being cross examined by Honeywell’s lawyer, Mr Olabode Olanipekun, SAN, insisting that the agreement for the payment was for a two-term payment only. He said the agreement stipulates that N500m must be paid that same day and the balance later. He was however, unable to substantiate his assertion before the court. Meanwhile, Ecobank while reaction to the judgment, said it was to appeal the judgement delivered by the Lagos Federal High Court, on the protracted N5.5 billion legal suit between Honeywell and Ecobank. It said was will fully prosecute the appeal as it strongly disagrees with the decision of the court. It said, “It will appeal the judgment as same did not take into consideration salient facts put before the court. In the view of Ecobank, a debtor should be made to pay its full debt having failed to pay as and when agreed.” A spokesperson for the bank said that the company will pursue recovery of the debts owed by the Honeywell companies to the logical conclusion through the courts, as return of depositors’ funds is key to ensuring the sanctity of agreements and viability of continued support and growth of local businesses by Banks.

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Ex Governor Abdullahi Ganduje, Wife, others To Be Arraigned April 17 Over Dollar Video…..

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2 weeks ago

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April 10, 2024

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The Kano High Court is set to arraign Kano State’s immediate previous governor, Abdullahi Ganduje, on April 17, 2024, on charges of bribery, diversion, and theft of money, including the alleged acceptance of $413,000 and N1.38 billion in bribes.

Haruna Dederi, Kano State Attorney General and Commissioner of Justice, confirmed the situation, saying Ganduje would be charged with his wife and six others.

The accused individuals named in the summons are Abdullahi Umar Ganduje, Hafsat Umar, Abubakar Bawuro, Umar Abdullahi Umar, Jibrilla Muhammad, Lamash Properties Ltd, Safari Textiles Ltd, and Lesage General Enterprises.

The Kano State Government, which initiated the criminal suit against the eight respondents, has declared its readiness to present 15 witnesses to testify before Justice Usman Na’aba of State High Court number four.

“It is very true. We have filed the case and it’s going to hold on the 17th of April, 2024. What I cannot confirm is whether he is served or not, but he will definitely be served,” he said.

Dederi further highlighted the significance of accountability in governance, remarking, “What he (Ganduje) doesn’t understand is that you cannot run away from the evil day, it will definitely come to you, and this will even serve as a deterrence to all of us that are also in government now.”

The commissioner also addressed the jurisdictional aspect of the case, asserting,
“He was saying that we can’t prosecute him, forgetting that the offence also falls under the category of the state offences,” he said.

“It’s not totally a federal affair and we have even appealed to Justice Liman ruling on that.”

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Just In: Emefiele arrives Lagos court for arraignment

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3 weeks ago

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April 8, 2024

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The embattled former Central Bank of Nigeria Governor, Godwin Emefiele, has arrived at the Ikeja State High Court in Lagos for
his arraignment over alleged abuse of office and allocation of billions of dollars.

Emefiele, alongside his co-defendant, one Henry Isioma Omole, will be arraigned on fresh 26 counts before Justice Rahman Oshodi this morning.

In the charge marked ID/23787c/2024 and dated April 3, 2024, the EFCC alleged that Emefiele abused his office between 2022 and 2023 in Lagos.

The commission alleged that the former CBN governor “directed to be done in abuse of the authority of your office, as the Governor, Central Bank of Nigeria, an arbitrary act, to wit: allocating foreign exchange in the aggregate sum of $2,136,391,737.33 without bids, which act is prejudicial to the rights of Nigerians.”

Details later…

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Look Beyond Sentiments, Fagade Urges Critics of Tinubu’s Appointments… Congratulates FIRS Boss, Zacch Adedeji

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6 months ago

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November 1, 2023

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Businessman and chieftain of the All Progressives Congress (APC) in Oyo state, Chief Abisoye Fagade has told those accusing President Bola Ahmed Tinubu of nepotism to jettison primordial sentiments, vindictiveness and bitterness with a view to supporting the current administration in its drive to take Nigeria out of the doldrums.

Fagade’s submission came against the background of insinuations from some quarters that appointments made so far by President Bola Tinubu was skewed in favour of the Yoruba ethnic group or people in the south western part of the country even though there have been counter reactions from eminent personalities from all parts of the country that the accusation of nepotism against Mr. President was unfounded and invalid.

In a statement issued on Wednesday and made available to journalists in Ibadan, Fagade described the Tuesday confirmation of Dr. Zacch Adedeji as the substantive chairman of the Federal Inland Revenue Service (FIRS) by the Nigerian Senate as “a step in the right direction taken to facilitate the quick realization of economic recovery agenda of the Tinubu administration.

“The appointment of Dr. Adedeji as the FIRS boss as well as other cerebral financial and economic management experts to man one key post or the other in the current administration will no doubt yield the desired results as Nigerians should expect economic rejuvenation, wealth creation and naira stability in no time. Governance is no tea party and one fundamental thing in the life of any government is having the right peg in the right hole and not the other way round.

“It is essential we congratulate our own Zacch Adedeji on the confirmation of his appointment as the FIRS boss by the Nigerian Senate in view of the fact that our confidence and trust in him as a competent administrator, seasoned financial expert and unique patriot remain constant. There are high expectations about Nigerian economy being diversified for obvious reasons by the Tinubu administration and we believe with the likes of Adedeji in FIRS, the goal would be achieved sooner than later.

“Above all, we appeal to all stakeholders in the affairs of our dear country to always eschew jingoism, ethnic biases or religious consideration on any matter relating to the interest of the most populous black nation in the world. The time to fix Nigeria is now and with the person of President Tinubu at the helms of affairs, the massive turnaround desired in our socio-economic and political architecture would begin to materialize very soon and it would not only be consolidated but also sustained for the collective benefits of all and sundry”. Fagade stated.

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