By Aloysius Umalo, Makurdi
Benue Investment and Property Company (BIPC) has filed a lawsuit against the Nigeria Deposit Insurance Corporation (NDIC) and All States Trust Bank (in liquidation) at the Federal High Court in Makurdi for their involvement in an illegal sale of shares.
The lawsuit, which dates back to 2011, faced delays as NDIC initially sought an out-of-court settlement, leading to arbitration proceedings in Abuja.
However, the matter could not be resolved through arbitration, prompting the resumption of court proceedings.
During the recent court hearing, the plaintiff’s Counsel, Douglas Pepe SAN, presented Mr. Paul Agu as a key witness.
Agu, a former employee and MD/CEO of BIPC, testified that the company had applied for a loan of N550m from the Federal Mortgage Bank, using shares as collateral with All States Bank (in liquidation) providing a guarantee.
Despite the bank’s failure to uphold its contractual obligations, they began deducting charges from BIPC’s account and failed to complete necessary procedures for the loan transaction.
Pepe submitted 32 documents as evidence in support of BIPC’s claims, including bank statements and share transfer details.
The plaintiff accused the defendants of breaching the contract, charging unauthorized fees, and unlawfully selling the pledged shares.
BIPC is also seeking N8.6bn in damages, including compensation for lost income due to the inability to trade with the shares, the current value of the shares, proceeds from the unlawful sale, lost dividends, and bonuses, as well as general damages.
The plaintiff explained that they sought a loan of N550m from the Federal Mortgage Bank and used shares as collateral with All States Bank (in liquidation) offering a guarantee.
The plaintiff further alleged that the respondents failed to fulfill their contractual obligations, charged unauthorized fees, and sold the shares pledged as collateral.
They are equally seeking adequate compensation, including N2.6bn for lost income due to the inability to trade the stocks pledged as collateral since 2002.
Additionally, they are demanding the return of shares valued at over N740m in 2007, appreciating to over N5.5bn by 2007.
They also want N99.5m as proceeds from the unlawfully sold shares and N62.8m for lost dividends and bonuses as well as the sum of N2bn as general damages from the respondents.
The case is ongoing, with the respondents Counsel, Aondover Iorngee, preparing to present their defense in response to the allegations brought forth by BIPC before before Justice Rafael Egbe of the Federal High Court in Makurdi.
