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ZENITH BANK PLC IN OIL BLOCK FRAUD … DRAGS NNPC TO COURT

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Zenith bank is a Public Limited Financial institution licensed by the Central Bank of Nigeria for the provision of banking services and having its registered office at Plot 87, Ajose Adeogun Street, Victoria Island Lagos, Nigeria while Minister of Petroleum Resources is an officer of the Federal Government of Nigeria who is responsible for the Ministry of Petroleum resources which is saddled with the responsibilities of licensing of all petroleum and gas operations and activities including concession policies in the oil and gas sector of the Nigerian economy and ensuring compliance with regulations and processing of application for licenses, leases and permits in the petroleum and gas industry of Nigeria.

Nigerian National Petroleum Corporation (NNPC) is located at NNPC Towers, Central Business District, Herbert Macaulay Way, Garki, Abuja. NNPC is an agency of the Federal Government of Nigeria established to engage in all commercial activities relating to the Petroleum industry and to enforce all regulatory measures relating to the general control of the Petroleum sector through its petroleum inspectorate department. Meanwhile, Nigdel United Oil Company Ltd, situated at 20, Elias Close, Victoria Island, Lagos, registered in Nigeria under the Companies and Allied Matters Act.

However, Nigdel United Oil Company Ltd (NUOCL) is a customer of Zenith and has maintained banker/customer relationship.  NUOCL applied to Minister of Petroleum Resource (MPR) and Nigeria National Petroleum Corporation (NNPC) to own a bid for an oil prospecting license (OPL 233) in Nigeria 2006 Mini Round Bidding for Oil Blocks.

Under the terms and conditions of the grant of the Oil Block, NUOCL was to pay a total signature bonus commitment of the sum of $11,000,000,00 (Eleven Million US Dollars) to the MPR and NNPC respectively.

In pursuance of the banker/customer relationship existing between NUOCL and Zenith bank, NUOCL approached his bank (Zenith Bank) for credit facilities in the sum of $11,000,000,00 (Eleven Million US Dollar) to be utilized for the payment of the signature bonus in respect of OPL 233 to be allocated to NUOCL by MPR and NNPC.

zenith bank building
Nigeria United Oil Company Ltd’s application to Zenith bank for credit facility and for the relationship between them, Zenith bank grant the credit facilities in two tranches in the total sum of $11,000,000.00 US Dollar to enable NUOCL finance the payment of the signature bonus for OPL 233 it won from NNPL and MPR

That pursuant to the bank’s offer letter which was duly accepted the NUOCL, Zenith Bank granted NUOCL a short term loan in the sum of $2,750,000,00 (two million, seven hundred and fifty thousand dollar) for a tenor of ninety (90) days to finance payment of signature bonus commitment in respect of OPL 233 Oil block to be allocated to NUOCL by Minister of Petroleum Resources and NNPC. In furtherance of NUOCL’s acceptance of the credit facility, NUOCL forwarded to Zenith board resolution accepting the said facility.

It is the terms of the agreement between Zenith bank and NUOCL as contained in the Zenith bank credit facility $2,750,000,00 shall be secured by NUOCL assigning 25% of its interest in the Oil Block allocated to her by NNPL and MPR in favour of Zenith bank.

By the agreement between Zenith Bank and NUOCL, NUOCL was obligated to execute an irrevocable assigning 25% right in respect of the Oil Block to Zenith but NUOCL failed and refused to do so.

Also, Zenith bank granted another credit facility in the sum of $8,250,000,00 to NUOCL vide an offer letter which was duly accepted by Zenith Bank. In accepting the said credit facility, NUOCL forwarded its board resolution to Zenith Bank.

The said credit facility in the sum of $8,250,000,000 was for a tenor of twelve months and it was granted to enable NUOCL finance the payment of the 75% balance of the signature bonus commitment payment in respect of OPL 233 Oil Block to be allocated by NNPC and MPR respectively.

The aforesaid credit facilities of $11,000,000,00 was secured by NUOCL was of assignment of 100% of its right in the OPL 233 Oil Block allocated to NUOCL by NNPC and MPR

By the terms of the letter dated 11th Sept., NUOCL was obligated to execute an irrevocable mandate assigning 100% of its rights in the OPL 233 OIL Block allocated to by NNPC and MPR in favour of Zenith bank.

However, Zenith Bank, following the terms of the credit facilities advance to the NUOCL prepared an irrevocable mandate assigning 100% of the NUOCL’s interest in the OPL 233 to Zenith bank to serve as security for the credit facilities Zenith Bank advanced to the NUOCL, but NUOCL refused to execute the said irrevocable mandate.

Zenith bank management revealed that the credit facility in the sum of $2,000,000,00 granted to NUOCL vide offer letter dated 14th August, matured on 17th November, which the credit facility in the sum of $8,250,000,00 granted to NUOCL vide Zenith bank offer letter dated 11th September, ever since the maturity of the aforesaid facilities, NUOCL was wilfully and persistently refused and failed to liquidate same Oil Block.

Source have it that Zenith bank revealed that NUOCL, from onset had the intention not to pay the credit facilities to the bank and that was why it failed/refused to execute the irrevocable mandate assigning its 100% interest in the OPL 233 as security for the loan.

The two parties agreed on interest rate payable in respect of the facilities Zenith Bank granted NUOCL was 25% per annum.

Zenith Bank aver that, the sum of $15,900,089,99 was outstanding in the account of NUOCL with the bank being the unpaid credit facilities the bank availed NUOCL plus interest. With this claims and intentions, Zenith Bank Plc as dragged NNPC, MPR and NUOCL to court.

NNPC claims that this is a fraudulent act/move by Zenith Bank as NNPC has never part of any agreement made by either party.

However, all the claims by Zenith are not acceptable by NNPC as a defence statement was issued.

NNPC as hereinafter expressly denies each and every averment of facts contained in the statement of claims as if same has been set down and denied seriatim.

NNPC is not in a position to admit to most of the claims mentioned by Zenith Bank but however admits that NUOCL is a customer of Zenith Bank and also won the bid for an oil prospecting License (OPL 233) and was also awarded license thereto after fulfilling all the requirement of the law.

We gathered that, Zenith bank should have encourage its client in every way to pay up instead of dragging them to court.

Moreso, NNPC revealed that, was not a part to any agreement entered between Zenith Bank and NUOCL. There exists no privy of contract between NNPC and either Zenith Bank or NUOCL in respect of any loan facility or any transfer of any interest in license issued.

NNPC is not aware of any of such agreement entered between Zenith and NUOCL.

NNPC cannot be bound by any agreement which he was not a party to.

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How Four-Year-Old Boy Died During Feeding In Former Presidential Aide, Senator Joy Emodi’s Abuja School

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A four-year-old pupil, identified as Miguel Ovoke, has reportedly died at BrickHall School in Abuja during feeding hours.

We learnt that the school located at Cadastral Zone B11, Kaura in Abuja, is owned by Senator Joy Emodi, who was a member of the 5th and 6th Senate before serving as Special Adviser to President Goodluck Jonathan on National Assembly Matters.

She is the founder and Chairman of the school, we learnt.

During her time in the Senate, she was appointed Chairman of the Senate Committee on Education.

It was learnt that Ovoke who died on Wednesday.

According to the death certificate of the pupil dated April 24, 2024, issued by Excel Specialist Hospital, Abuja, which was sighted by The PUNCH, Ovoke was brought to the hospital by his teachers around 11 am in an unconscious state.

The medical report, signed by Dr. Akinwande Ajayi, on behalf of the medical director, indicated that he was brought in, “on account of aspiration on meat while feeding at school.”

Upon examination, the medical team found that the boy’s pupils were fixed and dilated, with a nonreactive response to light.

His peripheral pulses were said to be “impalpable, blood pressure was unrecordable, and there was no cardiopulmonary activity or respiratory excursions, silent chest.”

Efforts made by the hospital to resuscitate him failed.

When contacted, Josephine Adeh, the FCT Police Command Public Relations Officer told SaharaReporters that she had not been briefed about the incident.

“I have not been briefed about the incident, I will get back to you when I have anything on the matter,” she said.

Sahara Reporters!

 

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Society

An Icon of Service: NATCOM boss, Otunba Adejare Adegbenro’s Leadership Legacy

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In the intricate mosaic of Nigeria’s societal fabric, Otunba Adejare Adegbenro stands as a beacon of commitment, resilience, and service.

 

Born on March 6th, 1973, in Lagos, he draws from a lineage steeped in political legacy, being the grandson of the late Premier of Western Region, Alhaji Daudu Sooroye Adegbenro. Raised in a family that values service to the community, Otunba Adegbenro has carved his path as a distinguished figure in Nigerian society.

 

The culmination of his familial heritage and dedication to community service was marked by his installation as the first Otunba Laje of Owu Kingdom in Ogun State, Southwest Nigeria.

 

This historic event, which took place on January 20th, 2018, under the auspices of His Royal Majesty Oba Olusanya Dosunmu II, traditional ruler of Owu kingdom, reinforced Otunba Adegbenro’s deep-rooted ties to his cultural heritage and commitment to uplifting his people.

 

Beyond his traditional titles, his influence extends globally, with his appointment as High Commissioner by the International Human Rights Commission (IHRC), where he spearheads foreign special missions aimed at preventing illegal migration and human trafficking. This appointment is a testament of his reputation as a renowned security expert and industrialist, whose expertise transcends national borders.

 

In his role as the acting Director-General of the National Commission against the Proliferation of Arms, Light Weapons, and Pipeline Vandalism (NATCOM), Otunba Adegbenro has demonstrated a steadfast commitment to combating threats to national security. His vast experience in security consultancy and supply of security gadgets has positioned him as a pivotal figure in Nigeria’s security landscape.

 

However, Otunba Laje of Owu Kingdom’s contributions extend beyond the realm of security.

 

Through his foundation, the Otunba Adejare Adegbenro Foundation (OAAF), he channels his resources towards uplifting the less privileged in society. With initiatives ranging from the provision of boreholes to communities lacking access to clean water, to scholarships for deserving students, he exemplifies the spirit of philanthropy and communal solidarity.

 

Reflecting on his journey, Otunba Adegbenro once acknowledged the challenges he has faced, from navigating the complexities of entrepreneurship to confronting societal stereotypes.

 

Yet, through it all, he remains resolute in his commitment to service and upliftment. His philosophy, rooted in faith and compassion, drives him to make a tangible difference in the lives of others, regardless of obstacles encountered along the way.

 

Otunba Adejare Adegbenro stands as a testament to the power of leadership, resilience, and unwavering dedication to the common good. In him, Nigerians find not only a visionary leader but a compassionate steward of progress, whose impact reverberates far beyond the shores of his homeland.

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Real Reasons WPG, Parent Company Of Eko Electricity Distribution Company, EKEDC, Sacks Ex-MD/CEO, Tinuade Sanda With Immediate Effect

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West Power & Gas Limited, the parent company of Eko Electricity Distribution Plc (EKEDP) has sacked the immediate former MD/CEO of the electricity distribution company, Ms Tinuade Sanda.

Sanda’s appointment with WPG Ltd was terminated in a letter signed by the company chairman, Charles Momoh and dated April 17, 2024.

The letter titled, ‘Termination Of Contract Of Employment,’ said Ms Sanda’s termination of employment takes effect from the date on the letter.

It reads, “We refer to your contract of employment dated April 1, 2022, signed between you and WPG Limited [the “Contract”].

“We hereby advise you that your services are no longer required and accordingly your employment with WPG Ltd is hereby terminated effective April 17, 2024, in accordance with clause 10.2 of the Contract.

“WPG Ltd is obligated to pay you three months salary in lieu of notice and hereby advise you that the due amounts have been credited to your account.

“You are requested to kindly return all company’s properties (whether WPG or EKEDP) in your possession which will include but not limited to laptops, identity card, and status car upon your receipt of this letter.”

“We wish you all the best in your future endeavours,” it added.

On March 26, Society Reporters reported that Ms Sanda had been suspended by EKEDP and directed to return to WPG, from where she had been seconded to the electricity company.

The suspension was in line with a directive of the Nigerian Electricity Regulatory Commission (NERC) to the EKEDP board to suspend with immediate effect all the workers of WPG Limited working with the company.

WPG is a limited liability company incorporated under the laws of the Federal Republic of Nigeria, which has a stake in EKEDP. The consortium of local businesses acquired a 60% stake and controlling interest in EKEDP (Eko Disco).

We gathered that the directive might be connected with the recent petition by some concerned staff members of EKEDP to the Vice President, Senator Kashim Shettima; Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Economic and Financial Crimes Commission (EFCC) for intervention in the alleged endemic corruption in the management of the electricity distribution firm.

Although the company had dismissed the allegation, describing it as unfounded, the accusers continued to push for external investigation.

Society Reporters reported on March 18, that the Board of Directors and Management of the electricity distribution company had cleared all the staff members accused of corruption and other fraudulent practices.

The Board in a statement signed by its Chairman, Dere Otubu, titled “Eko Disco Management Cleared In ‘Ghost Worker’ Investigation,” said that the investigation into the ‘ghost workers’ allegations had been concluded and findings indicated that the allegations of fraud, negligence, or conspiracy against some members of staff were unfounded.

However, in compliance with the directive of NERC, the Board Chairman, Otubu, directed Ms Sanda to leave her position as MD/CEO of EKEDP, as she was also seconded from WPG.

But reacting to the report, Director and Chairman, Legal and Regulatory Committee, Mr. Babor Egeregor, faulted the Board Chairman’s letter suspending the MD/CEO and others on secondment, insisting that Ms Sanda remained the CEO of EKEDP.

Indeed, we learnt that following the directive, the MD/CEO, Chief Legal Officer, Chief Finance Officer, Chief Human Resources Officer, Chief Auditor and Compliance Officer and others on secondment at the company handed over their handover notes to their subordinates as directed.

A copy of the letter addressed to the MD/CEO signed by the board chairman, dated March 25, 2024 and obtained by us, is titled: ‘Implementation Of NERC Directive On Seconded Staff.’

The letter read, “We have received a NERC directive dated March 21, 2024, which instructed Eko Electricity Distribution Plc inter alia, as follows: ‘EKEDC is hereby directed to ensure that all staff working for the utility are employed by the utility directly, bound by applicable service conditions that are applicable to the employees of the utility and paid through the utilities payroll.’

“The Disco is obligated to obey these directives due to the powers of NERC as stipulated in the Electricity Act 2023. In compliance with the above directive, all seconded staff from WPG Ltd are being released by Eko Electricity Distribution Plc and returned to WPG Ltd.

“You are hereby relieved of your role, office, and position at Eko Electricity Distribution Plc effective immediately and returned to WPG Ltd your Employer.

“You are further directed to hand over to the highest ranking staff of Eko Electricity Distribution Plc under you.

“We hereby record our appreciation of your valuable services and contribution to the growth and successes achieved by Eko Electricity Distribution Plc over the years as a seconded staff from WPG.”

A source told this platform that those affected were discovered to have been operating with a ‘double standard’ on the job.

The Director of IT department, JP Attueyi, a WPG staff member also seconded to EKEDC, swiftly handed over to the most senior person in his department.

In his handover note, addressed to the IT Department and Temitope Odufuwa, dated March 25, Attueyi said it was in compliance with the directive of the chairman.

It partly read: “As you may be aware, I am a WPG staff seconded to EKEDC – WPG owns EKEDC. Today I got an email from the EKEDC Chairman saying that all WPG staff have been recalled back to the parent company effective immediately. As such, I will be handing over to Tope to run the IT department.”

“Please give him the necessary support as we navigate this period,” he wrote.

 

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