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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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Nigerian transparency watchdog demands Immediate release of Amb. Dr. Otunba Adejare Adegbenro, public apology from police

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2 weeks ago

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May 7, 2024

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The Nigerian Transparency and Accountability Watch Group, a non-partisan organization dedicated to upholding transparency, accountability, and the rule of law, has issued a fervent call for the immediate release of Amb. Dr. Otunba Adejare Adegbenro, who has been detained by the Nigeria Police under unclear circumstances.

 

Amb. Dr. Otunba Adegbenro, a distinguished diplomat and grandson of renowned figures in Nigeria’s history, including Pa Alfred Rewane and Alhaji Aloye Dauda Soroye Adegbenro, was taken into custody on 26th April 2024. Despite his significant contributions to social justice and security in Nigeria, the reasons behind his detention remain shrouded in mystery.

 

In a public statement issued today, Comrade Zakari Hashim, the National Coordinator of the Nigerian Transparency and Accountability Watch Group, condemned the arbitrary his detention as a violation of his fundamental rights.

 

Hashim emphasized the importance of upholding due process and ensuring fair treatment for all individuals, regardless of their status.

 

“As an organization dedicated to promoting transparency and accountability within Nigeria, we strongly condemn any actions that undermine the fundamental rights of individuals,” stated Hashim.

 

“The arbitrary detention of Amb. Dr. Otunba Adejare Adegbenro without clear justification is a blatant violation of his rights and is inconsistent with the principles of democracy and the rule of law.”

 

The Nigerian Transparency and Accountability Watch Group has called upon the relevant authorities, including the presidency, the Inspector General of Police, and the Office of the National Security Adviser (ONSA), to intervene and secure the immediate release of Amb. Dr. Otunba Adegbenro.

 

Additionally, the organization has demanded a thorough and impartial investigation into the circumstances surrounding his detention to ensure accountability for those responsible.

 

Comrade Hashim reiterated the group’s commitment to monitoring the situation closely and advocating for justice and accountability in Nigeria. “We remain steadfast in our pursuit of transparency and accountability,” he affirmed.

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Former education minister, Kenneth Gbagi dies at 62

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2 weeks ago

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May 4, 2024

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A former Minister of Education and industrialist, Kenneth Gbagi, has died at the age of 62.

Gbagi was the governorship candidate of the Social Democratic Party in the last election in Delta State.

He was reported to have died on Saturday, May 4, 2024.

This was confirmed in a statement released by his family.

The statement, signed by his eldest son, Chief Emuoboh Gbagi, read, “It is with profound sadness but gratitude to God that we announce the passing of our beloved father, grandfather, husband, and brother.

“Olorogun Kenneth Omemavwa Gbagi, former Minister of Education, departed this life on the 4th of May 2024 at the age of 62.

“We take comfort in the fond memories of his life, his achievements, and the impact he made on the lives of countless individuals and communities.

“We kindly request your thoughts and prayers for our family during this challenging time of loss.

“May his soul rest in perfect peace.”

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

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1 month 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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