“BIPC Sues NDIC and Liquidated Bank Over Illegal Share Sales”
The 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, accusing them of the illegal sale of shares. The case, which began in 2011, experienced delays when NDIC sought an out-of-court settlement, leading both parties to an arbitration panel in Abuja. However, the panel was unable to resolve the issue as NDIC later decided to pursue the matter in court.
During the latest court hearing on Wednesday, the plaintiff’s legal representative, Douglas Pepe, SAN, called a key witness, Mr. Paul Agu, the former Managing Director and CEO of BIPC. Agu explained that the plaintiff had applied for a N550 million loan facility from the Federal Mortgage Bank, pledging some of their shares to All States Bank (in-liquidation) as collateral. In return, the bank was to act as a guarantor and facilitate the loan.
However, Agu stated that the bank failed to meet its contractual obligations, including deducting arbitrary charges from BIPC’s account and failing to complete the necessary processes for a letter of credit. Pepe presented 32 documents as evidence to support their claims, including bank statements from BIPC’s account with All States Bank between August 2002 and December 2003, as well as records detailing the illegal sale of shares.
The respondents’ lawyer, Aondover Iorngee, cross-examined the witness and requested a date to begin their defense.
BIPC accuses NDIC and All States Bank (in-liquidation) of breaching their agreement, selling the shares pledged as collateral without authorization, and charging BIPC excessive fees. The company is seeking N2.6 billion in lost income for being unable to trade the shares since 2002, in addition to compensation for the shares, which were worth N740 million in 2007 and appreciated to over N5.5 billion by that time. Furthermore, BIPC is demanding N99.5 million for the proceeds of the illegally sold shares and N62.8 million for lost dividends and bonuses. The plaintiff also seeks an additional N2 billion in general damages.
