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Stanbic IBTC In Trouble As Supreme Court Orders Bank To Pay Customer ₦2.5Billion

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The Supreme Court of Nigeria on Wednesday upheld the judgement of a federal high court in the case between the bank and a customer, Mr Patrick Akinkuotu earlier upheld by the court of appeal and ordered Stanbic IBTC Bank to pay N2.5 billion in damages for breach of contract.

This brings to a close a long-running court battle between Stanbic IBTC and Mr Akinkuotu and his company, Long Term Global Capital Ltd who had sued the bank for contractual breaches relating to the repayment of overdraft facilities granted by the bank to Long Term Capital Ltd.

The bank had approached the Supreme Court in hopes of overturning the verdict of the federal high court in Lagos which had ruled that the bank erred in disposing of 28,745,400 units of GTB PLC shares held by Mr Akinkuotu and his company at the sum of N267,775,799.21. The shares had been used in securing the merged overdraft facilities of ₦1.25 billion granted at various points between April and July 2007.

The plaintiffs, who were being represented by Chief Felix Fagbohungbe SAN and Barrister Abayomi Adeniran had contended that the bank’s action to sell those shares based on an unsigned email purportedly from Mr Akinkuotu while ignoring the specific terms of the official sale mandate was tantamount to unprofessional conduct. They also accused the bank of deliberately undervaluing the shares and selling them significantly below market rates.

The trial court after listening to the arguments of both sides had opined that “The law stipulates that court should discountenance an unsigned document as its contents cannot override a duly executed mandate in the circumstances.”

Consequently, it entered judgment in favor of the plaintiffs and awarded ₦2.5 billion in damages against Stanbic IBTC Bank. The bank had swiftly appealed the judgement only to suffer a setback at the court of appeal which upheld the verdict of the lower court.

In a final roll of the dice, the bank took its case to the Supreme Court, asking it to overturn the judgement of the lower court. The five-member panel hearing the case has however dismissed the bank’s appeal for lacking merit and ordered it to comply with the judgement of the federal high court.

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Lagos  State govt to concession Red and Blue Line rails for sustainability, loan repayment…. 

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The Lagos State Government has revealed plans to concession the operations of the Red and Blue Line rail systems to the private sector to ensure their sustainability and repay loans taken for the rail projects.

 

The disclosure came from the Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, during a recent TVC News interview, where he discussed measures being put in place to sustain the rail systems in the state.

 

Osiyemi explained that concessioning would involve transferring the operations of the rail systems to private sector players for a specified period, a strategy designed to guarantee continuity and effective management of the rail projects.

 

 

The ultimate game is for all our rail systems we’ve done—that is, the Red Line and Blue Line—there is going to be some concessionairing with the private sector for a period of time to ensure sustainability and continuity,” he stated.

 

He added, “The concessioning would help pay back the loans taken for the rail projects.”

 

 

The commissioner highlighted that the concessioning strategy aims to ensure efficient operations and financial sustainability, aligning with the state’s vision for a world-class transportation network.

 

More insight

 

Osiyemi further emphasized the significant financial and technical demands involved in operating rail systems, describing them as capital-intensive projects that require substantial resources and specialized expertise.

 

 

To address these challenges and build local capacity, he explained that the Lagos State Government has engaged foreign partners to temporarily manage the operations of the trains.

 

These partners are expected to not only ensure efficient operations during their tenure but also transfer essential skills to Nigerian personnel. The plan includes a structured training program lasting one to two years, after which management of the rail systems will be fully handed over to local operators.

 

“What we have done is we have consulted foreign partners who, of course, would run these trains for a particular period of time and train our people—that is, transfer of skills.

 

They will train our people for one to two years, then hand over for our own management,” Osiyemi stated.

 

 

What you should know

 

The Lagos State Government, under its Lagos Strategic Transport Master Plan, has outlined an ambitious vision to develop multiple rail systems across the state.

 

Currently, only the first phases of the Red Line and Blue Line rail systems have been completed, with passenger operations already commenced.

 

The Blue Line is a 27km electric rail line designed for sustainable operations. Its first phase, covering 13km from Lagos Marina to Mile 2, was completed in 2023 and commenced commercial operations in September, transporting over 2 million passengers to date.

 

 

The Red Line, spanning 37km from Agbado in Ogun State to Oyingbo in Lagos, operates on diesel. Its first phase, a 27km stretch, includes eight strategically located stations: Agbado, Iju, Agege, Ikeja, Oshodi, Mushin, Yaba, and Oyingbo.

 

 

The construction of the second phases of both the Red Line and Blue Line rail systems is being handled by the China Civil Engineering Construction Corporation (CCECC), which also oversees the operation of the trains.

 

 

Beyond the Red and Blue Lines, the state has plans for additional rail systems, including the 68km Green Line (Lekki Free Trade Zone to Marina), the 85.7km Purple Line (Redemption Camp to Ojo), the 48km Orange Line (Ikeja CBD to Agbowa), and the Yellow Line, to further enhance the state’s transportation network.

 

 

 

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Finance Ministry Allegedly Spent N55million On Sendforth  Of Perm Sec, Udo Okonkwo Ekanem, Pays Money Into Personal Account…

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A  review of public payments portal, Govspend, has shown that a sum of over N55 million, was paid into the account of one Unoh Omolara, for the sendforth party of Udo Okonkwo Ekanem.

 

The payment was made by the Federal Ministry of Finance.

 

Okonkwo served as the permanent secretary, special duties of the ministry.

 

The payment for the party was made on September 13th, 2024.

According to the payment description, the event was scheduled to hold at Transcorp Hilton hotels on September 6th, 2024.

 

 

Further checks revealed that the event was confirmed by the ministry of finance on its website.

 

The ministry had noted that it celebrated the Ekanem in appreciation of his oustanding commitment.

 

 

This is despite the provision of Chapter Seven, Section 713 of Nigeria’s Financial Regulations 2009 states that “Personal money shall in no circumstances be paid into a government bank account, nor shall any public money be paid into a private account.”

 

The money spent on the sendforth was twice the amount spent to set up 28 boreholes in Jigawa State.

 

According to details on the Govspend website, N28.3 million was spent on drilling twenty-three solar powered borehole and five numbers hand pump boreholes in Jigawa State.

 

 

This would mean that this money spent on sendforth, half of it would have provided same number of solar powered boreholes and hand pumps in other locations of the country.

 

There have been concerns over prudence in management of government resources by different ministries’ department and agencies.

 

Although, the government has expressed its commitment to accountability, experts say there are loopholes exploited by different government parastatals.

 

 

 

Source: Sahara Reporters.

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ICPC Arraigns House Of Reps Ex-Member John Dyegh For Money Laundering

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The lawmaker was arraigned on Monday on a five-count charge before Hon. Justice M. Shitu Abubakar at the Federal High Court 1 sitting in Makurdi, Benue State, under case number FHC/MKD/CR/184/2024.

 

The Independent Corrupt Practices and other related offences commission (ICPC) has arraigned a former House of Representatives, John Dyegh, for abuse of office and money laundering.

 

 

 

 

 

John Dyegh, who served as a member of the 9th National Assembly, representing Gboko/Tarka Federal constituency at the House of Representatives of Nigeria, was arraigned before a Federal High Court sitting in Makurdi, Benue State, for allegedly violating the provisions of the ICPC Acts 2000.

 

 

 

 

 

The lawmaker was arraigned on Monday on a five-count charge before Hon. Justice M. Shitu Abubakar at the Federal High Court 1 sitting in Makurdi, Benue State, under case number FHC/MKD/CR/184/2024.

 

 

 

 

 

The charges detail alleged corrupt practices, including Dyegh’s receipt of N18,970,000 (Eighteen Million Nine Hundred and Seventy Thousand Naira) on May 19, 2014, intended for the construction of school facilities in Guma, Benue State.

 

 

 

 

 

John Dyegh was accused of allegedly channeling the funds through the First Bank account of Midag Limited, a company in which Dyegh has a substantial interest. This alleged action violates Section 19 of the Corrupt Practices and Other Related Offenses Act, of 2000.

 

 

 

 

 

He was further alleged to have received and transferred these funds through Midag Limited and Kangnaan Global Resources Limited, companies associated with him, contrary to the Corrupt Practices Act.

 

 

 

 

 

Dyegh allegedly abused his office by privately benefitting from contracts awarded to the companies while overseeing the related funds as a signatory on their accounts, according to the charge sheet.

 

 

 

The Presiding Judge, Justice Abubakar, at the commencement of the trial last Friday ordered Dyegh’s to be remanded at the Nigerian Correctional Center, Makurdi, pending the determination of his bail application and adjourned the matter till Monday 11, November, 2024.

 

 

 

However, at the resumed hearing of the case on Monday, November 11, 2024, Defense Counsel S.E. Irabo moved a bail application of his client Dyegh.

 

 

 

He prayed the court to grant his client the bail citing health concerns.

 

 

 

Justice Abubakar, after listening to the argument of the counsels, subsequently granted Dyegh bail in the amount of N20 million, requiring two sureties with international passports to be surrendered to the court and verifiable addresses.

 

 

 

 

 

Meanwhile, Justice Abubakar later adjourned the case until January 16, 2025, for a definite hearing of the corrupt case preferred against the former Federal Lawmaker.

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