AMCON stated upon maturity of the loan facility, the Ekiti born Senator, refused, failed and neglected to liquidate the loan leading to the accumulation of interest over times of interest and that as at January 1, 2011, the principal facility and interest stood at N307, 779, 998.80 million.
AMCON further averred that due to continuous accumulation of interest, the defendant’s indebtedness to it as at November, 2017, stood at N478, 170,566.62 million. While adding it instructed its counsel, Godwin N. Chigbu, to write the Senator a demand letter through the addresses he provided with the bank.
It stated that despite several demand letters been delivered to the defendant, he still refused and neglected to pay the demanded sum. Adding that as at March 31, 2018, the Senator’s debt stood at the sum of N511, 311, 895. 80 million.
Due to the alleged failure of the Senator to pay back the indebtedness, AMCON consequently, asked the Court for an order directing MOB to pay it the sum of N511. 311, 895. 62 million being the debt owed since March 31, 2018.
It also asked the court for a court order directing the Senator to pay interest on the claimed sum accessed at 15 percent par annum from April 1, 2018, till the date of judgment. And an order directing the defendant to pay 15 percent par annum from the date of judgment until the judgment is fully liquidated.
However, Senator Bamidele in his statement of defence and counterclaim filed before the court by one of his counsel, Precious Orotma (Miss) said the alleged debt arose because of the banker-customer relationship between him and the defunct Oceanic Bank. Adding that the bank sometimes in 2007, through its team of investment bankers and asset managers approached and invited him to partner with the bank for the purchase of stocks and shares.
He also states that the Bank and its subsidiary company now explained to him that the Bank would provide the sum of N210 million, inform of margin facility while the Defendant would provide an equity contribution of 30% plus security in the sum of N90 million, worth of shares and cash. Adding that the bank told him that his contribution would be merged with that of the Bank to finance the purchase of shares and stocks in which the purchased shares would remain in the custody of the Bank which shall also manage the investments through its asset management, this known as Oceanic Capital Limited and Oceanic Asset Management (OAM).
The senator also stated that as a result of his request, an offer of margin facility was made to him on October 15, 2007, to the tune of N210 million, on the fulfillment of certain conditions. Adding that Oceanic Bank did not take reasonable care in ensuring the performance of the contract and observe compliance with all terms and conditions of their agreement in relations to the transaction, as it failed to monitor the stock market, advise the him accordingly and appropriately sell down as it was obliged by the margin facility agreement.
The Ekiti State Senator also stated that the Oceanic Bank International Plc. through-out the period of year 2007 up to the time it was acquired by Eco bank Plc, did not approach him for the repayment of the marginal facility, because it knew that we were joint investors and that he did not take and could not have taken a single Kobo out of the Bank as it was not like a conventional loan facility where a Borrower could withdraw or drawdown from the account.
He stated that while waiting for the meeting to explore amicable resolution of the issues surrounding he mismanaged margin facility as promised by the Claimant’s Counsel, the Claimant’s Counsel sneaked into this Honourable Court to file a frivolous Suit against him with an ulterior motive to confiscate his fund and properties and with a view to ultimately blackmailing, harassing and forcing him into negotiation.
He consequently asked for a declaration that Eco Bank of Nigeria Plc, was in breach of the margin facility agreement dated October 10, 2007, as a result of its failure to use its professional skills a d expertise to property disburse, invest, manage, control and create the margin facility which occasioned huge losses to him.
He further asked for an order directing Eco Bank of Nigeria Plc, to pay post-judgment interest at the rate of 10percent until the judgment is liquidated.