Connect with us

Business

Court Restrains First Bank Over GHL, Otedola, Others Face Arrest

However, it was gathered that FBN went ahead by obtaining a court injunction purportedly freezing GHL’s funds in all commercial banks in the country to the tune of $225.8 million, in violation of the earlier court order.

Published

on

9 Views

Image credit: Arise News

More facts have emerged concerning the alleged failure of the First Bank of Nigeria (FBN) to fulfil its part of a deal to fund the exploration and development of Oil Mining Lease (OML) 120, contrary to the agreement it had with the management of General Hydrocarbons Limited (GHL).

Also, the Chairman of First Bank Holdings, may face arrest for contempt of a Federal High Court, Lagos Judicial Division and for flouting an order restraining the bank from taking any steps to enforce any security, receivables, instruments or finance documents or assets of GHL.

An order is granted, restraining the Respond either by itself or acting through its servants, agents assigns, privies affiliates howsoever described, including any person claiming under its authority from making any calls or demands or taking any steps whatsoever to enforce any security receivables, instrument, finance documents or assets of the Applicant which have been charged as security for the facility agreements in respect of the Applicant’s operation of OML 120.

“(This) include, but not limited to the said letter, and the amended and restatement agreements between the Applicant and the Respondent pending the hearing and determination of the arbitration proceedings between the Applicant and the Respondent brought pursuant to Clause 12 (c) of the Agreement between the Applicant and the Respondent dated 29th May, 2021,” the court document showed.

However, it was gathered that FBN went ahead by obtaining a court injunction purportedly freezing GHL’s funds in all commercial banks in the country to the tune of $225.8 million, in violation of the earlier court order.

As a result, GHL has initiated contempt proceeding against the bank and its directors.

Aside Otedola, who is facing arrest for going ahead to get a mareva order without disclosing to the court that the case had already been argued and determined, also facing contempt charges are the Managing Director/Chief Executive Officer, Mr. Olusegun Alebiosu, and other directors.

GHL had dragged FBN Holdings to court as the holding company was seeking to frustrate and take over the oil and gas company’s bona fide assets after signing the memorandum of understanding (MOU).

More importantly, FBN is putting at risk the repayment of the outstanding exposure to AMCON and the repayment of its new facilities under the MOU and seeking to create Atlantic Energy 2 by trying to orchestrate another non-performing loan situation.

“GHL will resist this with all the powers of the law and will not allow any non-performing loan in its name as we remain committed to meeting all our obligations.

In addition, FBN’s non-payment for the TotalEnergies farm-out of the Noble Rig (drill ship), has exposed GHL to over $15M default penalty by 14 November 2024 which FBN is fully aware of.

These costs are in addition to further millions of dollars in costs and exposures to global service providers like Schlumberger, Baker Hughes, Century FPSO and Marine Platforms, Halliburton, etc.  

For over three years, despite demands from GHL and in line with all the signed agreements, FBN has refused, failed and neglected to pay salaries and operating expenses of GHL staff, offices and operations. 

“If they cannot pay for GHL personnel and operations, how do they plan to pay for an additional independent asset manager, when GHL has already appointed ab initio Schlumberger and Baker Hughes as joint technical operators and advisers,” the oil company queried.

THISDAY reported on Thursday, that a group of shareholders at First Bank of Nigeria Holdings Plc., with 10 percent of the company’s shares had formally requested the company to call an Extra-ordinary General Meeting (EGM) under section 215 (1) of CAMA in which case they have 21 days to call the EGM.

Top on the agenda of the proposed meeting is the removal of Otedola and a Non-executive/Deputy Chief Executive of Geregu Power Plc, Omodayo-Owotuga. 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

President Tinubu List Economic Expectations from New Tax Laws

On his verified X handle @officialABAT, the President had said that the new tax laws form the groundwork for the Nigeria of tomorrow, focused on unlocking opportunities for all.

Published

on

By

15 Views

President Bola Tinubu said today that the four tax reforms bills he signed into law reflect his administration’s resolve to create a modern, transparent, and efficient tax system capable of supporting national development, promoting investment, and reducing the burden of multiple taxation on citizens.

President Tinubu explained that the laws would be unifying Nigeria’s fragmented tax system, remove redundant overlaps, boost investor confidence, enhance transparency, and promote coordinated efforts across all levels.

He also described the legislation as a clear departure from previous policies, emphasising that the reforms are designed to ease the burden on working families, small businesses, and low-income earners while eliminating inefficiencies that have long plagued Nigeria’s fiscal structure.

On his verified X handle @officialABAT, the President had said that the new tax laws form the groundwork for the Nigeria of tomorrow, focused on unlocking opportunities for all.

“We are also building a framework for the Nigeria of tomorrow-leaner, fairer and laser focused on unlocking opportunities for all,” he said.

He added : ” These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet.

Designed to overhaul Nigeria’s fiscal and revenue administration framework, the laws which have been described as a major leap in the nation’s economic reform drive.

“For too long, our tax system has been a patchwork-complex, inequitable, and burdensome. It has weighed down the vulnerable and shielded inefficiency. That era ends today.”

Continue Reading

Business

Tinubu signs four Tax Reform Bills to law today

The bills were recently passed by the National Assembly following extensive stakeholders consultations and technical reviews.

Published

on

By

22 Views

President Bola Ahmed Tinubu will today (Thursday) sign into law four tax reform bills set to overhaul Nigeria’s fiscal landscape, streamline tax administration, and boost investor confidence.

The ceremonial signing is scheduled to take place at the State House, Abuja.

In a statement , Bayo Onanuga, Special Adviser to the President on Information and Strategy, said that the four bills are : the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill

The bills were recently passed by the National Assembly following extensive stakeholders consultations and technical reviews.

Continue Reading

Business

Lagos State Enforcement Team Busts Illegal Abattoir in Agege, Arrests Operators

Published

on

30 Views

The Lagos State enforcement squad of the MOE&WR led by KAI operatives on Wednesday burst an illegal abbatoir which was being operated at a private residence at Succo road directly opposite the RRS Barracks and LASTMA Yard in Oko Oba, Agege, arresting some of those found slaughtering animals for public consumption in the location.

The operation followed a tip-off from a whistle blower.

“The enforcement team said, the contaminated meat from cows and goats have been confiscated to prevent it from entering the food chain”.

“This action of the operators of the abbatoir is in defiance of the closure of the Oko Oba Abbatoir and poses great health dangers and environmental risks to the law abiding residents of the area”.

“We need to make it clear that such disregard for public health and sanitation will not be tolerated in Lagos State” .

“Every Government’s primary responsibility is the protection of lives and properties and we will not shirk that responsbbility.”

“We will continue to ensure that only safe and approved public facilities are allowed to operate within our communities.”the statement reads.

Continue Reading

Trending