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JAIZ Bank Chairman Umaru Mutallab Dragged to Court Over Unremitted N75 Million Rent
In a bid to recover unremitted sum of N75mllion collected as rent, a limited liability company GORI Nigeria Limited has dragged the Chairman of Jaiz bank Plc Alhaji (DR) Adamu Umaru Mutallab before a Lagos high court.
In a statement of claim accompanied by statement witness on oath of the executive assistant of Gori company Evenlyn Ayika, filed before a Lagos high court on behalf of Gori Company by a Lagos lawyer, Barrister Olanlokun Omolodun,the company alleged that it holds power of attorney in respect of the property situate at No 1621 Danmole street Vitoria island Lagos.
The building at No 3c was the resident of the late managing Director of the company Mr. Gobind Malkani and his family until his demise sometime in 2006. No 3a Damnmole was and still the residence of Mr. Malkani’s daughter Veena and her family while No 3b Danmole was and still the office premises of the company.
The managing Director Mr. Gobind Malkani passed away in 2006 and his daughter Ms Veena Malkani was appointed new managing Director of the company by the two Directors Alhaji (Dr.) Adamu Umaru Mutallab and one Alhaji Magaji Mohammad;
Sometime in 2008,the company managing Director suggested to the defendant that No 3c Danmole be let out to tenants to avoid it remaining empty after the death of her father and earn valuable income for the company.
The defendant subsequently entered into negotiations with the then Intercontinental bank who had its Head office opposite the property to rent No 3c Danmole for 5years in consideration of the rent in the sum of 75Million Naira only.
The negotiations were concluded and the rent cheque endorsed in favour of the Gori Nigeria Limited was delivered to the defendant in 2008 but the defendant failed to forward same to the company.
Several demand notices in respect of the N75 Million rent sum were issued to the defendant who failed and/or refused to reply or comply with same till date;
Sometime in 2016, the claimant’s Managing Director declared her intention to commence action to recover the rent sum from the defendant but was informed that the claim had become time-barred as the action ought to have been brought to recover the debt within 6 years of receipt of the rent cheque by the defendant. Owing to this advice, the proposed action was not filed.
However,sometime in September 2018, the company’s managing director re-established contacts with a Lagos lawyer Mr. Olanlokun Omolodun Esq. who had previously done some legal work for the company and an associated company, IPBC Nig Ltd, and subsequently sought his legal advice regarding the defendant’s refusal to pay over the N75million rent.
The advice received was to the effect that the proposed recovery action could not be statute-barred because the reliefs against the defendant would be for breach of the defendant’s duty as agent to account to the company his principal, for the rent sum received for the company from the tenant at 3c Danmole (the subject premises) and that such a claim for equitable relief was exempted from the applicable limitation law.
He further advised that the law considers the principal officers of a company to be its agents for the conduct of its business since a corporate body has no body and limbs of its own but must of necessity act through its directing minds and principal officers. The relationship between a company and its officers is thus one of principal and agent by operation of law.
The advice to the claimant also included facts showing that the defendant had probably and fraudulently received value for the rent cheque since 2008 and intended to never account for it thus permanently depriving the company of same.
The company avers that the defendant is believed to have fraudulently received value for the rent cheque as follows:
The rent cheque was a banker’s draft endorsed in favour of the company in respect of which value could be received upon presentation over the counter in the relevant bank;
Alhaji Muthalab was a non-executive director, a sinecure which entitled him to merely attend annual meetings in exchange for a stipend and who played no role in the operations of the company, was not a signatory to the claimant’s bank accounts; but the defendant fraudulently opened another bank account in the name of the company with himself as the signatory to the said account in order to receive value for the cheque over the counter.
The defendant’s refusal to respond to any of the demand notices issued him in respect of the said sum was deliberate to avoid reviving the cause of action for a simple debt which he believed had become stale or time-barred
By his refusal had to account to the company for the rent sum received,the defendant had breached his duty ,as agent,not to make secret profit while acting for his principal;
At the trial of this action, the company shall contend that,by his refusal to reply several demand notices received by him in respect of the withheld rent sum, the defendant is deemed in law as having admitted the facts of his agency to the company with a duty to account for the rent sum but which account he refused to render. The defendant is thus estopped from denying these material facts it had admitted by its said conduct.
The company further avers that as a director of the claimant company, the defendant had a fiduciary duty to advance the business of his principal, account for all monies of the company in his possession and his retention of the rent sum in the manner aforesaid amounted to breach of his trust position to unjustly enrich himself. It was the said legal advice which made the Claimant’s managing director become aware of the defendant’s conduct.
Despite that the defendant was issued with the mandatory pre-action notices, he still refused all invitations to amicably resolve the claimant’s grievance thus causing the claimant to incur the avoidable commitment to pay its counsel the claimant contingency fee entitled of 20% of the sum recovered as legal fee for this action. The company is also entitled to recover this fee from the defendant.
Defendant’s conversion of the N75million rent sum has denied the company the opportunity to profitably trade with same at attractive markups
The defendant having unlawfully utilized and taken benefit of the N75million rent sum belonging to the company and at its expence, the company is entitled to recovery of the judgment sum with 20% interest until judgement and thereafter 10% interest on the judgement sum until full satisfaction thereof.
The company seeks from the Court against the defendant, the following reliefs
A declaration that the defendant’s refusal to account for money for the rent sum was a
breach of his duty to account to the company for monies received on company’s behalf
An order of specific performance directing the defendant to render account for and deliver to the N75m rent received on company’s behalf forthwith;
Interest on the said sum at the rate of 20% since 2008 until judgment and
thereafter at the rate of 10% until full satisfaction; and Legal cost of this action on a full indemnity basis
However,Alhaji Umaru Muthallab in his statement of defence filed before the court by Chief B.C. Igwilo SAN,the defendant stated thus:
Gori company was incorporated on 12th February, 1987 with a share capital of N1,000,000.00 held as follows;
i) Mr. Gobind Malkani 400,000 shares
Alhaji (Dr) Umaru Mutaliab – 300,000 Shares
Alhaji Magaji Muhammed 300,000 Shares
The three shareholders mentioned in the proceeding were also the only directors of the company until the passing of Mr. Gobind Malkani sometime in 2005.
In his life time, Mr. Gobind Malkani was managing director of the company
and had a daughter named Veena Malkani. Following his death the surviving directors appointed Veena Malkani, his daughter to continue to act as Managing Director.
Prior to his death, Mr. Gobind Malkani and his daughter separately occupied two of the three houses of the Plaintiff company rent free.
However, following the said death of Mr. Gobind Malkani and his residential premises becoming free and vacant, agreement was reached for letting of the said premises and the Defendant retaining the proceeds as compensation for economic loss suffered by the Plaintiff company and consequent deprivation of dividends by defendant shareholders from the Malkani’s occupation of two houses of the company over the years.
The houses are potential income yielding assets which never was on account of occupation of same by the Gobind Malkani and his daughter rent free. Veena Malkani had no relationship whatsoever with the Plaintiff company at the material time and yet occupied one of the company’s buildings grauitously.
While Veena acted as Managing Director, she failed in the management of the company and its business to the consternation of
the surviving directors.
She procured and presented false documents to the Corporate Affairs Commission sometime in 2018 in a bid to alter the true records of the Plaintiff company.
Soon after Veena’s false representations in the company’s statutory records came to light, the Defendant was constrained to draw the attention of the Corporate Affairs Commission to the same. The Commission investigated the complaint and expunged the said and false entries from the records of the Plaintiff company.
Irked by the steps taken by the Defendant against her steps, Veena malevolently instructed the said Olanlokun Omolodun Esq to file this action without board approval or ratification:
Veena’s reason for instituting this action is expressly stated in her letter to Defendant dated 8th February, 2019.
The Board of the Plaintiff company constitutes of the present Defendant, Umaru Mutallab and Murtala Magaji Muhammed. at the meeting of the board of directors of the company held on 8th August, 2019 Veena was by a special resolution dismissed as managing director of the company. Notice of the meeting dated 5th July, 2019 was duly served on Veena who elected to be absent from the meeting.
The Defendant avers that the purported claim against him for return of rent is statute barred ana unavailing.
Therefore the defendant prays the Court to dismiss the suit for lacking in merit and award of punitive damages against the company for wasting the time of the Court.
Meanwhile,in a witness statement on oath made in reply to the statement of defence sworn to by the general manager of Gori company Mr. Adetoyese Adetiloye,all the statement of Alhaji Mutallab were denied, Mr. Adetiloye averred that, additional proof of falsity was revealed by the defendant silence as to how the Director Mr.Gobind Malkani was compensated for lost of dividend payments because the defendant was compensated with N75million as claim due to loss of dividend owing to use of property as company residence ,then it would only be equitable for Mr Gobi Malkani to be similarly compensated. What was his compensation? or did the company collude with the defendant against the third director’s interest and entitlement to equal compensation ? or what amount was the dividend the defendant claims was denied to justify the hefty compensation of N75 million? The defendant silence on these aspect proves the falsity of his averment.
Consequently, Mr. Adetiloye aver that at the trial or sooner determination of his action contend that the entire defence to the claim lacks merit,is not cognisable, dilatory in nature and fails to answer the documented specific allegations of fraud contained therein and is frivolous,vexatious and taken in abuse of court’s process which ought to be dismissed and judgement entered as sought against the defendant.
Meanwhile,the case has been adjourned till 7th of March,2022 for hearing
- INJUNCTION AND STAY OF EXECUTION
- CARGO REMAINS UNDER ARREST
In a surprising twist of events, its decision delivered today, the Federal High Court in a surprising shift from the true nature of FirstBank ’s claim held that the matter is not a maritime claim but rather, a simple case of debt recovery. This is quite surprising considering the fact that the order sought is to prevent further fraudulent sale of crude on the FPSO.
Shockingly, the court also held that the Arrest Order against the cargo, because it was exparte in nature, expired by effluxion of time within 14 days of its issuance.
Aggrieved by the decision, FirstBank lodged an appeal against the decision of the FHC. Also, FirstBank filed an application for an injunction of the court against GHL, pending the determination of the appeal. The Cargoes of Crude Oil on the FPSO TAMARA TOKONI remain arrested.
While FirstBank has great respect for the courts, it strongly disagrees with the ruling, which, in our view, constitutes a miscarriage of justice.
FirstBank remains committed to protecting and securing the interest of its members and will relentlessly pursue justice against mischievous debtors seeking to use the machinery of the law to perpetuate mischief and evade their responsibility to offset outstanding obligations.
About FirstBank
First Bank of Nigeria Limited “FirstBank”, established in 1894, is the premier bank in West Africa, a leading financial inclusion services provider in Africa, and a digital banking giant.
FirstBank’s international footprints cut across three continents ─ Africa, Europe and Asia, with FirstBank UK Limited in London and Paris; FirstBank in The Democratic Republic of Congo, Ghana, The Gambia, Guinea and Sierra Leone; FBNBank in Senegal; and a FirstBank Representative Office in Beijing, China. All the subsidiary banks are fully registered by their respective Central Banks to provide full banking services.
Besides providing domestic banking services, the subsidiaries also engage in international cross-border transactions with FirstBank’s non-Nigerian subsidiaries, and the representative offices in Paris and China facilitate trade flows from Asia and Europe into Nigeria and other African countries.
For 130 years, FirstBank has built an outstanding reputation for solid relationships, good corporate governance, and a strong liquidity position, and has been at the forefront of promoting digital payment in the country with over 13 million cards issued to customers (the first bank to achieve such a milestone in Nigeria). FirstBank has continued to make significant investments in technology, innovation and transformation, and its cashless transaction drive has been steadily accentuated with virtually 23 million active FirstBank customers signed up on digital channels including the USSD Quick Banking service through the nationally renowned *894# Banking code.
With over 42 million customer accounts (including digital wallets) spread across Nigeria, UK and sub-Saharan Africa, the Bank provides a comprehensive range of retail and wholesale financial services through more than 820 business offices and over 233,500 agent locations spread across 772 out of the 774 Local Government Areas in Nigeria.
In addition to banking solutions and services, FirstBank provides pension fund custody services in Nigeria through First Pension Custodian Nigeria Limited and nominee and associated services through First Nominees Nigeria Limited.
FirstBank’s commitment to Diversity is shown in its policies, partnerships and initiatives such as its employees’ ratio of female to male (about 39%:61%; and 32% women in management) as well as the FirstBank Women Network, an initiative that seeks to address the gender gap and increase the participation of women at all levels within the organisation. In addition, the Bank’s membership of the UN Women is an affirmation of a deliberate policy that is consistent with UN Women’s Women Empowerment’s Principles (WEPs) ─ Equal Opportunity, Inclusion, and Nondiscrimination.
For six consecutive years (2011 – 2016), FirstBank was named “Most Valuable Bank Brand in Nigeria” by the globally renowned The Banker Magazine of the Financial Times Group and “Best Retail Bank in Nigeria” eight times in a row, 2011 – 2018, by the Asian Banker International Excellence in Retail Financial Services Awards.
In 2022, the Top 100 African Bank rankings released by The Banker Magazine ranked FirstBank as number one in Nigeria in terms of Overall Performance, Profitability, Efficiency and Return on Risk. Also in 2022, the Bank received the “Most Innovative Retail Banking Product in Nigeria (FastTrack ATM)” and “Best Retail Bank in Nigeria” awards from International Finance Magazine. FirstBank was also awarded “Best Corporate Banking Western Africa, 2022” and “Best CSR Bank Western Africa, 2022’’ by Global Banking and Finance Magazine.
Other notable awards in FirstBank coffers include: “Best Bank in Nigeria” by Global Finance magazine – fifteen times in a row; “Best Private Bank in Nigeria-2021” awarded by Global Finance magazine; “Best Internet Banking Nigeria” and ‘’Best CSR Bank Africa’’ by International Business Magazine.
In 2023, FirstBank received notable awards including “Best Private Bank for Sustainable Investing in Africa 2023” by Global Finance Awards; “Best Sustainable Bank in Nigeria 2023” by International Investors Awards; “Best Bespoke Banking Services in Nigeria 2023” by International Investors Awards; “Best Financial Inclusion Service Provider in Nigeria 2023” by Digital Banker Africa; and “African Bank of the Year” by African Leadership Magazine; ’’Best Corporate Bank in Nigeria 2023’’ by Euromoney Awards and ‘’Most Innovative Banking Brand – Nigeria 2023’’ by Global Brands Award.
Other laudable feats in 2023 include FirstBank’s international recognitions on major indices by Euromoney Market Leaders, an independent global assessment of the leading financial service providers where FirstBank was crowned:
Market Leader: (tier-1 recognition) in Corporate Banking,
Market Leader: (tier -1 recognition) in Digital Solutions,
Highly Regarded: Corporate and Social Responsibility (CSR),
Highly Regarded: Environmental, Social and Governance (ESG), Notable: in SME Banking.
Significantly, FirstBank’s Global Credit Rating was A+ with a positive outlook while ratings by Fitch and Standard & Poor’s were A (nga) and ngBBB+ respectively both with Stable outlooks as at September 2023. FirstBank maintained the same level of international credit ratings as the sovereign; a milestone that was achieved in 2022 for the first time since 2015.
Our vision is ‘To be Africa’s Bank of first choice’ and our mission is ‘To remain true to our name by providing the best financial services possible. This commitment is anchored on our core values of EPIC – Entrepreneurship, Professionalism, Innovation and Customer-Centricity. Our strategic ambition is ‘To deliver accelerated growth in profitability through customer-led innovation and disciplined execution and our brand promise is always to deliver the ultimate “gold standard” of value and excellence to position You First in every respect.
Olayinka Ijabiyi
Ag. Group Head, Marketing & Corporate Communications
First Bank of Nigeria Limited
FirstBank of Nigeria Limited, West Africa’s premier bank and a key player in financial inclusion, will today (Wednesday) host the groundbreaking ceremony for its new, green-certified headquarters in Eko Atlantic City, Lagos.
The 40-storey building, set to become the tallest structure in Nigeria, promises to be a technological and environmental marvel, with advanced, eco-friendly construction designed to set new benchmarks in Africa’s financial services sector.
A statement on Wednesday signed by Olayinka Ijabiyi, Ag. Group Head, Marketing & Corporate Communications, First Bank said the ceremony marks the beginning of a transformative journey that highlights commitment to innovation, excellence, and customer satisfaction.
“The new headquarters will feature a sustainable, green-certified design aimed at reducing operational costs while positioning FirstBank as a leader in sustainable banking practices,” it said.
Olusegun Alebiosu, CEO of FirstBank Group, stated, “We are thrilled to reach this important milestone in our pursuit of excellence. Our new head office will be a world-class structure that reflects our dedication to innovation, sustainability, and customer satisfaction. We believe this development will play a key role in driving economic growth and long-term value for all our stakeholders across Africa.”
With a legacy of over 130 years, FirstBank has consistently been a trailblazer in innovation, customer service, and sustainable business practices. The bank operates across nine countries on three continents, reinforcing its international presence.
Femi Otedola, Chairman of FirstHoldCo, remarked, “Today’s ceremony underscores the importance of collaboration and the unwavering support from various sectors in realizing our vision for the new headquarters. We are deeply grateful for the continued support from our customers and stakeholders as we bring this vision to life.”
The groundbreaking event will be attended by distinguished guests, including the President of the Federal Republic of Nigeria, Senator Bola Ahmed Tinubu GCFR, as well as senators, lawmakers, state governors, federal ministers, and key figures from various industries. This event marks the beginning of an exciting new chapter in FirstBank’s rich history, cementing its position as a leader in Africa’s financial landscape.
1.54m bopd production figure (quoted by THISDAY for October) is for September, not October,’ What NUPRC boss told highest body of petroleum explorationists and stakeholders in Lagos.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the 1.8 million barrels of per day (bopd) production figures earlier released by the Nigerian National Petroleum Company Limited (NNPC Limited) at the conference organised by the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
This newspaper, which reported the Commission boss, Gbenga Komolafe, to have said this to stakeholders, maintained that the development is contrary to a report making the round that the NUPRC contradicted the NNPC Ltd figures.
Speaking at the 42nd Nigerian Association of Petroleum Explorationists Annual International Conference & Exhibition in Lagos, Komolafe said that Nigeria’s crude oil output, including condensate, increased by 16.56 per cent to 1.8 million barrels per day, bpd in October 2024, from 1.54 million bpd in September 2024.
He said that as a result of this feat, Nigeria has exceeded the 1.5 million bpd quota of the Organisation of Petroleum Exporting Countries, OPEC.”This represents an increase of 253,710,bpd to reach 1.8 million bpd in October, up from 1.54 million bpd in September 2024, representing 16.56 per cent month-on-month rise,” he said.
Represented by Enorense Amadasu, Executive Commissioner for Development and Production at NUPRC, the NUPRC boss declared that efforts were underway to further increase oil output to two million bpd by December 2024.
Highlighting the theme of the conference, “Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability”, Komolafe, said the organization is committed to expanding Nigeria’s oil production capacity.
Checks by this newspaper showed that this is the same position of the NNPC Ltd, which said it and its partners have revved up crude oil and gas production to 1.8 million barrels per day (mbpd) and 7.4billion standard cubic feet (bscf) per day.
The company announced this at a press briefing, maintaining that the feat was achieved in compliance with the mandate of President Bola Ahmed Tinubu.This newspaper gathered that these figures are, contrary to misconstrued report, the same with the ones announced by the NUPRC.
Disparity Where There Is None A THISDAY review of the delayed October production figures by the NUPRC, which is the oil and gas sector upstream regulator, claimed that Nigeria produced 1.538 million bpd of crude oil and condensate.
The three-month low production data released by the NUPRC, the report claimed, contradicted the report announced by the national oil company and the Ministry of Petroleum Resources (Oil), which specifically put production at 1.808 million bpd.
Looking Beyond 1.8m bopd, Speaking on the development, the Group Chief Executive Officer, Mr. Mele Kyari, who reiterated that the Company revved up oroduction to 1.8 m bopd, declared the target to even increase the production to 2 million bopd.
Kyari congratulated the Production War Room Team that anchored the production recovery process.“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders based on the mandates that we have from the President, the Honourable Minister, and the Board,” Kyari explained. Giving details of the efforts of the Production War Room, the Chief War Room Coordinator, and Senior Business Adviser to the Group Chief Executive Officer, Mr. Lawal Musa disclosed that the feat was achieved through the collaborative efforts of Joint Venture and Production Sharing Contract partners, the Office of the National Security Adviser, as well as government and private security agencies.
He said the interventions led to the recovery of production cut across every segment of the production chain with security agencies closely monitoring the pipelines. He stressed that when the Production War Room team was inaugurated on the 25th June 2024, production was at 1.430mbpd, but the team swung into action, culminating into it sustaining the production recovery to 1.7mbpd in August and hitting the current 1.808mbpd in November.
“We are confident that with this same momentum and with the active collaboration of all stakeholders, especially on the security front, we can see the possibility of getting to 2mbpd by the end of the year,” he stated.
Also speaking on the development, Chairman of the NNPC Ltd Board of Directors, Chief Pius Akinyelure, who also congratulated the team, said he was happy to be part of the production recovery process, adding: “today, I will leave this place with my heart full of joy”.
He charged the Company’s Management to come up with a cashflow projection based on the new production figures to facilitate planning, stressing that he was looking forward to further production increase to 3mbpd.
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