The Nation Newspaper

Category: Law

  • N1.38b tax dispute: Ashaka Cement sues FIRS

    A manufacturing company, Ashaka Cement Plc, has sued the Federal Inland Revenue Service (FIRS) before the Tax Appeal Tribunal, North West Zone sitting in Kaduna over a N1.38 billion tax dispute.

    The suit was filed by company before the tribunal chaired by Justice Bashir Albasu.

    Other members of the panel are Eberechi Adele (SAN), Joshua Waklek,  Khadeeja Halilu and Dr Olumhense Imoisili.

    In its statement of claim, Ashaka Cement Company expressed disagreement with  the tax assessment made by the FIRS and prayed  the tribunal to review the decision.

    It said that in December 2014, the respondent (FIRS) commenced a Tax Audit Exercise on the appellant company for the  2013 financial year.

    “Subsequent to the exercise, the respondent issued an invitation/demand notice dated December 2, 2014 on the appellant assessing unpaid tax liabilities which the its representatives attended on December 15,2014.

    “The invitation/demand notice contained the breakdown of the assessment made by the respondent.

    “The appellant received the said letter on the December 4, 2014. The appellant responded to the said notice by an objection letter dated December 22,2014 and served it on the respondent on December 29,2014,”Ashaka Cement said.

    According to the company, the service of the objection letter was preceded by a reconciliation meeting held between the appellant’s representatives and the respondent’s representatives on December 15,2014.

    The appellant claimed that vital issues contained in the respondent’s notice were discussed and ironed out.

    Ashaka Cement argued that the grounds of objection raised by in its notice was a reflection of issues raised, canvassed and agreed upon at the reconciliation meeting.

    It noted that the company assessed its tax liability on technical fees based on estimate only and all supporting documents were attached in form of appendixes 1-12.

    “The relevant regulations require that technical fees computations prepared by an operating entity in Nigeria be reviewed and certified by a qualified chartered accountant. In this instance, the appellant has only made estimate of technical fees payable. This has not been certified or paid,” the company said.

    The company said despite the reconciliation meeting held between the parties, the respondent on the January 6,2015 finally issued a notice of refusal to amend the assessment.

    Ashaka Cement said it further wrote to FIRS on March 2, 2015 and April 16, 2015, asking the tax agency to reconsider its position by reviewing the assessment of the Tax Audit Exercise for the year 2013.

    The company said the request was declined which prompted it to instruct its counsel to file an appeal with the Tax Appeal Tribunal but could not do so within the statutory 30 days allowed by the Company Income Tax Act.

    Counsel to the appellant, Mr A. Dauda  informed the tribunal last week that steps had been taken to effect service of the required processes on IRS, the respondent organization.

    In a related development, hearing in the tax dispute between the Kaduna State Board of Internal Revenue and Ahmadu Bello University Zaria, with respect to unremitted personal income tax of over N6 billion has commenced before the Tribunal.

  • Activists, clerics petition council over not-for-profit code

    Activists, Pastors and workers of some Pentecostal churches have petitioned the Financial Reporting Council of Nigeria over its plan to promote the “Not for Profit Code 2015” against the religious organizations.

    The code seeks to nullify theocracy in the church which is ascendancy of rulership and headship of the church by spiritual means. It sought to impose democracy as preferred means of assumption to the structures of the church leadership in the area of appointment, tenure and succession.

    Some of the aggrieved churches are Redeemed Christian Church of God (RCCG); Living Faith International also known as Winners’ Chapel and Foursquare Gospel Church. They alleged that the promotion of the code was being mooted with active connivance of the Federal Ministry of Trade and Investment.

    Addressing a news conference in Lagos last week, their counsels led by Bamidele Ogundele said “governance in the church is a spiritual affair and that any attempt to separate spiritual affair leadership from administrative leadership would bring dichotomy, create crisis within the churches of God and create multidimensional contradictions”.

    Ogundele argued that the Sections 1.1, 8-40 of the code which impose General Assembly and tampered with the structures in the church “ is anti-Christ, satanic agenda, illegal and a breach and an infringement of the fundamental rights of their clients to freedom of thought, conscience and religion under Section 38(1) of the 1999 Constitution as amended and Article 8 of the African Charter of Human and Peoples Right (Enforcement And Ratification Act), Law of the federation 2004.

    He said that the council has over stepped its powers and functions under Sections 7 and 8 of the Financial Reporting Council of Nigeria as well as duplicating the functions of the Corporate Affairs Commission (CAC) under Companies and Allied Matters Decree, Law of the Federation 2004 which is saddled with the responsibility of registration and monitoring Churches and charitable organiSations.

    He said their clients are committed to the defence of rule of law and constitutionalism in Nigeria and have therefore decided to challenge the new development in court in order to prevent crisis in the church and to enforce their fundamental human rights at the Federal High Court, Lagos.

    The applicants in the suit number FHC/L/C5/974/15 are Bamidele Ogundele, Busola Ogunyode for themselves and the registered Trustees of the Centre for Rule of Law; Pastor Ayodele Oladeji, Babatunde Adefila, Isaac Opayinka and Bunmi Olawunmi.

    Respondents in the suit are the Attorney General of the Federation, Ministry of Trade and Investment and the Financial Reporting Council of Nigeria.

    The applicants among others sought six reliefs from the court including  a declaration of the court that the purported Not-for-Profit Sections Codes 2015 muted and being promoted by the second and third respondents is illegal and unconstitutional because it amounts to duplication of the functions of the CAC saddled with the responsibility of registration and monitoring of compliance of charitable organizations/groups.

    They also prayed the court for an order of injunction restraining the respondents, their agents and privies from adopting and given of effect of law to Not-for-Profit sector Codes, 2015 based on their infringement on the right of the applicants to religion under section 38(1) of the 1999 Constitution and Article 8 of the African Charter of Human and Peoples Right (Enforcement And Ratification Act), Law of the federation 2004 and its inconsistence with section 7 and 8 of the enabling law establishing the body i.e. Financial Reporting Council of Nigeria Act Cap f42, Law of Federation, 2011.

    Media Consultant to the Council, Mark Ogbamosa said it was a misunderstanding  that the churches see the Code as been targeted at them.

    “A committee was set up to work on a corporate governance for different sector of Nigeria. There is Corporate Governance already in Nigeria. In fact, we have six of them. For instance, there is one for CBN and banks and another  for the NGO’s and Churches and Mosques fall under this group because they are more or less public organizations. . The truth is that when you have Corporate Governance in churches and mosques, it is not for them to pay taxes. That is wrong because it is not about taxation,” he said adding that the council is also not going to look into the accounts of the churches. That is for Internal Revenue board to do.

    He however explained that corporate governance has  to do about tenure and succession.

    “It is saying that you cannot be in one position for too long. When you stay too long in one position, you become a dictator. You must give room for other people to cue in because you  are committing people’s money. So if it takes one person to stay there for too long, it means there could be dictatorship, there could be mismanagement”.

    Ogbamosa said the code has to do with universally accepted system of  church administration than of spiritual.

    He said the council is aware that the pastors have sued the agency and that they already have the papers.

  • Rights abuse: Journalist seeks to join Customs boss in suit

    A journalist, Mr Innocent Nwachukwu, has prayed the Federal High Court in Lagos to join the Nigerian Customs Service (NCS) and its Comptroller-General Alhaji Abdullahi Inde in his suit against the Department of State Services (DSS) and the Attorney-General of the Federation.

    His lawyer, Aloy Ezenduka, while moving the application, urged Justice Mohammed Yunusu to join NCS and Inde as third and fourth respondents because they are “necessary parties.”

    Nwachukwu, who is the publisher of Tentacles magazine, filed the fundamental rights enforcement action following his alleged arrest and detention by the DSS in an underground cell for 17 days.

    He said last December 14, the DSS invited him to its headquarters following a publication in his magazine relating to Inde, and had been harassing him and visiting his homes in Lagos and Abia with a view to arresting and detaining him over the publication.

    He said matters got to a head on January 14 when seven heavily armed and hooded DSS officers, in Gestapo style, arrested and beat him and his dependents up in spite of a subsisting court order against his arrest.

    The applicant is seeking a declaration that his arrest, handcuffing, being forcibly taken to DSS office at Shangisha blindfolded violated his rights. He said he was later transferred to DSS headquarters at Abuja by road in hand cuffs and blindfold, and was physically and psychologically tortured.

    He is also praying the court to declare that the removal of computers and other documents from his home without warrant “based on the malicious, trumped up and unsubstantiated allegation/petition of one Alhaji Abdullahi Diko Inde” is unlawful and amounts to gross abuse of power.

    The applicant is demanding N500million as general damages against Customs and Inde “for instigating the unlawful arrest, public humiliation and detention in an underground cell at the headquarters of the first respondent (DSS) for 17 days and the denial of the consorts of his three young children without any form of care…”

    Nwachukwu said the DSS operatives kicked him in the stomach and groin severally and denied him access to his lawyers while accusing him of being a blackmailer and an extortionist, which he said were defamatory and libelous.

    He said his arrest was “intended to gag the applicant, disrupt the practice of his profession and stop him from further publishing the dirty scandals surrounding the third and fourth respondents, especially the fourth respondent Alhaji Abdullahi Dikko Inde…”

    Nwachukwu was first invited after he published a story entitled: 20 obstacles against Jonathan’s election. Subsequently, the DSS said his arrest was due to Inde’s petition.

    DSS has objected to the application seeking to join NCS and Inde, saying the plaintiff’s cause of action does not involve the two.

    Justice Yunusa adjourned till October 26 for ruling on the motion to amend the statement of facts.

  • Gravitas Review: A guide to law and policy evaluation

    Let it be stated from onset that as a vehicle for academic and legal scholarship, the law review journals have long been known to be critical and central to the development of law in most jurisdictions. The purpose of law review publications is the detailed and comprehensive treatment of various topical issues in law, ranging from the interrogation of a legal principle, a statutory provision, some judicial decision, a proposed or a piece of legislation, to book reviews. The categories of subject matter open for review are not closed, except, of course, where the journal specifies by itself the ambit of its thematic focus.

    The Gravitas Review of Business and Property Law, simply known as the Gravitas Review is a journal that has just returned to hold its place in the corpus of Nigerian legal publications. A return because according to the Managing Editor ‘The Gravitas Review was an influential law journal in the late 1980s and early 1990s. It unfortunately ceased publication in the mix of socio-political crisis of 1993’.

    A law journal is made by the quality and content of its text and volumes. The Gravitas Review has aimed to be at the very top with an editorial team and board of advisers made up of some of the finest legal minds within Nigeria and elsewhere in the globe. The journal seeks ‘to be that quality business law journal from Nigeria publishing well researched articles on energy law, corporate law, international commercial transactions, economic crimes and sanctions, capital market and securities, maritime, taxation, tourism, project finance, land transactions and intellectual property among others’. Doubtless, this commitment to top quality has been demonstrated with the inaugural edition, the March 2015 Volume 6 No. 1 which dealt with various topical issues in business and property law.

    Under Intellectual Property, is the piece on page 1 titled: ‘Role of the Court in the Interpretation and Development of Intellectual Property Law: The Nigerian experience’by Prof Adebambo Adewopo. According to the writer ‘The role of the court in the interpretation and development of Intellectual Property (IP) law is, undoubtedly, pertinent and significant in the dynamics of IP law and practice in the country’. In the piece we find an examination of the classical role of courts regardless of the jurisprudential schools of thought, be they natural, normative or of the positive schools. That is to say, in the exercise of the judicial powers of the court, three things are obvious- courts are responsible for adjudication, courts decisions creates precedents and rule order particularly in the Common law and even the Continental civil law system, finally as we find from the writer, courts are more able ‘to discover and give effect to the underlying policy and legislative intendment of the overall purpose of law.’

    Despite having the first IP legislation received in 1900 known as the Trade Mark Proclamation of 1900, how has the courts fared with several other regulations and laws on IP having regards to legal issues in Patents, Copyrights, Trademark protection and enforcement? The writer posits that there is not much to cheer yet. In a country experiencing an upsurge of talent and creativity among the youths and other segment of the population, in the arts, music and sciences, the need to protect intellectual property of individual and groups cannot be overstated. A number of cases were examined such as Microsoft Corp. v Frankie (2005), Omnia v Dykrade (2003), Ferodo v Ibeto (2007) whose positions were not so helpful, but the writer is of the view that MCSN v Adeokin (2007) and Compact Disc Technologies Ltd v MCSN (2008) clearly defines the role of courts as well as provide the authority ‘for the legal status of collecting societies as owner, assignee and exclusive licencee of copyright under the Copyright Act.

    In the case of Company Law and Practice Enwanta Ehigiato in page 19 offered an equally engaging piece ‘Mandatory Incorporation of Foreign Companies in Nigeria: Some Legal Considerations’. In looking at the regulatory regime of companies law and practice under the CAMA, the writer sought to put in context and interpret the expression ‘carrying on business’ as it applies to local and foreign companies. This is analysed within the specifics of the provisions of Section 54 of the CAMA which makes it mandatory for any foreign company wishing to, or doing business already at the time of enactment of the legislation to be registered. Nonetheless, by virtue of section 60(b) of CAMA as noted by the writer, the foreign company can sue and be sued. This provision is important for international commerce and trade in a globalised economy, a point well captured by the cited case per Pats-Acholonu JCA in Watanmal (Singapore) Ltd v Liz Olofin & Co Ltd (1981). There are also exemptions to the mandatory incorporation rule in section 54 to be found in section 56(1). In the comparative examination of the laws and practices in the United Kingdom and Australia, the judicial positions suggest that the meaning attached to ‘carrying on business’ will depend on regular and repetitive business or having a place of business. Same position with Nigeria, except that a nation eager to be open and attractive for foreign investment must prove less stringent in the regulatory regime for foreign positive business interests.

    The third article on Labour Law by Professor Joseph Abugu titled: ‘Nearly Always, A Strike or Lock Out is Unlawful in Nigeria’. The writer set the tone of the piece clearly thus ‘The right to strike is a keystone of modern democratic society. No society, which lacks that right, can be democratic. Any society which seeks to become democratic must secure that right.’Following this point, the writer further states that the right of employees to strike hinges on the power of each individual to terminate his or her employment by giving notice. If there is a right to strike and many grand judicial and scholarly expositions hold that view, how does the exercise of that right become unlawful in Nigeria?

    This point is at the very heart of the writer’s focus since the 1999 Constitution recognises the freedom of movement and association. In Statutory Constraints, he enumerates and restates the scheme of rigid regulations through several decrees or laws, majorly under the military regime requiring the consent of the Inspector General of the Police, of the Chief of Staff Supreme Headquarters or the Military Command. Laws such as Trade Union Act, Trade Disputes Act, Trade Dispute Essential Services Act, Trade Disputes Emergency Provision, Decree 21, etc capture aspects of the statutory constraints. There are also categories of employees totally prohibited from strike, as those in the Armed Forces and Police, Customs, Prisons, CBN, etc called essential services. If downing tools by way of strike is deemed unlawful what is the consideration for employers Lockout of employees? The writer is of the view, and rightly so, that it is unlawful. There are immunities for the protection of union leaders and their members as provided in sections 24 and 44 Trade Union Act 1973. The Nigerian experience as stated by the writer finally is that though unlawful, strike as a weapon in the hands of workers continued to be utilised for bargaining and negotiating.

    In page 44, the title under Arbitration section is the piece is ‘The Lagos State Arbitration Law and The Doctrine of Covering The Field: A Review’by Abdulrazaq Adelodun Daibu. The writer makes the point about the critical importance of Arbitration as well as other Alternative Dispute Resolution (ADR) mechanisms to serve the interest of persons in the industrial, trading and commercial hub of Nigeria which is Lagos as a city and state. Covering the field refers to the situation in which a piece of legislation has dealt with the entire content and jurisdictional ambit of its subject matter typically in a federation and a conflict arises when a state within the federation enacts a similar law. Most Constitutions recognise the superiority of the laws of the central authority over those of the states in a federation and where the two conflicts, the central law prevails or even invalidates the other. This is more so where the matter is either in the exclusive list to the central government or the shared concurrent list. This is the point in the case cited by the writer per Fatai-Williams CJN in AG Ogun State v AG Federation (1982). What then is to be made of the Lagos State Arbitration Law, that is to say, can it be deemed invalid in the light of the dictum of the former CJN about invalidating a similar law at the time by Ogun State to an existing Federal Law? The writer boldly concludes that Lagos State Arbitration Law must be amended to survive the doctrine of covering the field.

    The fifth article is titled: ‘A Critical Analysis of the Excess Dividend Rule in Nigeria: Oando Plc v FIRS (Oando IV) Revisited’. This piece is on page 55 under the Taxation section and it reviews the Excess Dividends Tax (EDT) contained in section 19 of the Nigerian Companies Income Tax Act (CITA) 2004. This legislation seeks to control tax avoidance by corporate entities by taxing excess dividends. Excess dividends simply refers to that which is retained by companies for its own expansion or operational purposes. How appropriate is this scheme of taxation? The writer sought to engage with three models which are, the American model, the Taiwo Oyedele’s model and the Canadian model. The key point against the EDT is that it amounts to double taxation. If the promptings for taxing Excess Dividend in Nigeria is because it is an obvious or disguised attempt to shortchange the state through tax evasion, this point had long been settled as a legal principle in the opinion quoted in the piece of Justice Learned Hand ‘Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the treasury; there’s not even a patriotic duty to increase one’s taxes.’

    This may be the point, yet there is the need to proscribe tax avoidance and tax evasion as the writer put it with laws referred to as General Anti-Avoidance Rule (GAAR). The core issue is that the Oando IV case continues to reinforce a cycle of double taxation and such a rule of tax practice may not be the best for tax administration. We find finally that the American model does not impose EDT but will tax all distributions; Oyedele’s model shields all previously taxed incomes and gains from further taxation, finally the Canadian model under s 83(2) of the Income Tax Act recognises the payment of tax free capital dividends to shareholders of Canadian private corporations.

    On page 75 Prof. Nnabue USF and Onyema Otitodiri both lecturers at Imo State University Law Faculty had the article under International Investments titled: ‘Enforcement of International Custom on Expropriation of Foreign Properties and the Plight of Developing Countries’. From the background of sources of international law enshrined in Article 38(1) Statute of International Court of Justice, the writers stated that the ‘rationale for expropriation is based on the doctrine of economic sovereignty which in turn is derivable from the principle of economic self-determination. This is to say that states have the inalienable right to determine both their economic system and future without interference by or reference to another state or group of states’. How can this postulation withstand the trend in a globalised world of mutuality and economic interdependency?

    The writers here seek to hold aloft the concept of sovereignty as an inviolable answer. The basis for lawful expropriations as the writers enumerated are clear- public purpose, non-discriminatory, based on due process and followed by compensation. There is a strong sense in this except that hegemons dictate the pace of things in international law. Vested rights and Acquired rights become the predominant consideration at the expense of the rights of developing nations. Vagts D.F. made this point early in 2001 “Hegemonic International Law (Am. J. Int. Law) contending that ‘In the scholarship of international relations, power has been the central object of study, that no law graces the hegemons universe’.

    This edition concludes with a Book Review section on page 83. A review by Dr Wale Olawoyin, SAN of Principles of Corporate Law in Nigeria a book by Professor Joseph Abugu. The reviewer informs on the essential aspects of this 18 chapter, 821 pages book that looked into the evolution and structure of the corporation, protection of stakeholders against corporate maladministration, corporate governance issues and corporate insolvency.

    In all, the Gravitas Review offers a rich package and anyone interested in legal scholarship and enquiry will hold this copy and others to follow as a major resource material for practice and academic purposes. Legal practitioners, Lecturers, students and top state officials will immediately find the journal a veritable guide in law and policy evaluation.

  • N10b suit:  Braithwaite accuses bank’s witness of misleading court

    N10b suit:  Braithwaite accuses bank’s witness of misleading court

    A defence  witness in a N10 billion suit against Standard Chartered Bank,   Mr. Olugbenga  Akinmoladun, has told a Lagos High Court, Ikeja that the error as regards the date on his expert report on when the bank obtained its development permit was a mistake.

    Akinmoladun, who was under cross-examination by the claimant, Dr. Tunji Braithwaite said the mistake was a typographical error.

    But Braithwaite disagreed with the witness, contending that it was a deliberate falsehood intended to mislead the court.

    “I put it to you that you are in error when you said there was approved building permit. The error is a deliberate falsehood to mislead this court”, Braithwaite declared.

    The witness had written in his report that the development permit, marked exhibit D5 is dated  September 9, 2010 contrary to the actual date of June 2, 2010 on the document.

    Dr. Braithwaite is seeking an order declaring as illegal the erection of  a 14-storey commercial building and multi-level car park by the bank in an otherwise residential area in Victoria Island, Lagos and for demolition.

    He claimed that he is uncomfortable with the bank’s installation of giant industrial generators directly opposite his house, saying that the generator would create fumes and noise capable of shattering the air and the serenity of the environment.

    Under cross examination by the claimant, the witness denied that the structure did not have a  protective net but insisted on having seen a protective net at the 14th floor when he got to site. He also insisted that the airspace did not fall short of the requirements of Lagos State building regulations.

    Akinmoladun had claimed in his report that he physically measured the distance between the construction site and the claimant’s residence, adding that it is ‘about the size of a standard plot of land’.

    “The distance between the project and the claimant house is the size of a standard plot of land. I measured it. Our measurement is not faulty”, he stated.                                                                                     But the claimant disagreed and asked the witness why he speculated and failed to put the exact figure, if he actually measured it.

    The witness said it was because he didn’t  consider  it as necessary nor that it would become a  bone of contention.

    Earlier when led in evidence by defence counsel, Adeniyi Adegbonmire , the witness claimed to be a senior lecturer in the Department of Urban and Regional Planning of the University of Lagos (UNILAG) and also a registered town planner with more than 25 years experience but that he is yet to obtain a doctorate degree in the profession.

    “I am a lecturer at UNILAG. I am a senior lecturer and the first head of department of Urban and Regional Planning, UNILAG. I have been involved in World Bank infrastructure development project in Akwa Ibom, Niger and Ondo states. I also did the EIA of Diamond bank. I also did the EIA and building approval for City Bank. I took part in the building process and approval in Shoprite in Ikeja. I did the same for American International High School at Chevron drive. I have also been involved in land administration of UNILAG consult in Kaduna state”, he said.

    Adegbonmire tendered two reports before the court and the trial judge, Doris Okuwobi through Akinmoladun and they were admitted as exhibits D15 and D16 respectively.

    The reports tendered were Advocacy Planning Report in respect of the property situated at 142, Ahmadu Bello Way, Victoria Island and the review of claimants reply to defendant’s statement of defence dated July 2013 and August 2014 respectively prepared by Olak Consult.

    He said he prepared the report for Standard Chartered Bank in respect of the building approval of the property to counter the claimant’s expert ýreport.

    As a result of the development, the claimant said he would be praying the court for physical inspection and measurement by a neutral body.

    ”The claimant will be bring an application for an order for  physical and actual measurement of the project site by either the president of town planning association or surveyor general in view of the manifest conflict in the evidence of both sides on the core issue”, he said.

    Justice Okuwobi subsequently adjourned proceedings to October 22, 2015 for further direction.

  • Court upholds family’s land title

    The Ogun State High Court sitting in Abeokuta has upheld the Ilamiro Ilashe family’s claim to a parcel of land at Agbara in Ado-Odo/Ota Local Government.

    The Ilamiro Chieftaincy family of Igbesa, through the Ajaguna of Ilamiro land, Chief Adele Alayan  and Mr Nureni Orokoko sued Mr Segun Sodipo, Rafiu Apesin, Waheed Yusuf and Abiodun Adepoju (for themselves and on behalf of Agbara community), over the land.

    Justice A. A. Akinyemi declared that the plaintiffs, who joined Chief S. O Opara and Chief Akanni Soyombo as defendants, were entitled to the land with Survey Plan no. FF/700/OG/89. He made an order of perpetual injunction restraining all the judgment-debtors from the land.

    He held: “I am satisfied that the evidence of traditional history proffered by the plaintiffs is sufficient, on a balance of probabilities, to entitle them to a declaration of title to the land in dispute.”

    The judge, in the suit numbered HCT/2007/97, awarded N 100,000 damages to the plaintiffs because Alayan had testified that on June 23, 1995, the defendants led thugs to invade the land and demolish their family house.

    “There is evidence, which I believe, showing that the plaintiffs were in exclusive possession of the land and that the defendants entered the land to disturb their possession. Trespass is unlawful interference with land in exclusive possession of another and is actionable per se,” the judge held.

    The Court of Appeal in Ibadan also dismissed an appeal on the judgment by Sodipo because no records were transmitted from the lower court. In a judgment by Justice M.B Dongban-Mensem, the court held: “We agree that the appeal is stale and is liable to be and is hereby dismissed.”

    Meanwhile, the Inspector-General of Police, on June 17, directed the Commissioner of Police in Ogun State to investigate a petition by the plaintiffs through their lawyer Bode Oyeyemi.

    In the petition, the family said the defendants have “flagrantly” disobeyed the subsisting judgment by allegedly moving into the land with over 500 heavily armed thugs who chased the family members away and prevented them from “reaping the fruits of their hard earned judgment while they (defendants) are busy selling our land at the speed of light at the cheapest rates.”

    Chief Alayan has warned the unsuspecting members of the public against paying the wrong people for the land. “Buyers have to go to the rightful owner to buy the land genuinely, not the trespasser.  If anybody is buying the land without my signature on the land document, he/she has wasted his money,” he said in a statement.

  • Eastern Bar elects new leaders

    Eastern Bar elects new leaders

    The Eastern Bar Forum (EBF)  of the Nigerian Bar Association (NBA) has elected new leaders to run its affairs for the next two years.

    The election was part of the last EBF quarterly meeting under its former chairman Mr. Ogbonna O. Igwenyi. The programme was declared open by the Chief Judge of Anambra State, Justice Peter N.C. Umeadi at the NBA Onitsha Bar Centre.

    In a hotly contested election, Mr. E. O. E. Ekong was elected chairman. Others are Arthur Chukwu (Vice-Chairman), Basil Aguigwo (Secretary), Emeka Anosike (Financial Secretary), Promise Iwezor (Rivers  Representative) and Charles Azubuike (Abia State Representative).  Imo, Bayelsa and Akwa Ibom States are yet to send representatives to the governing council.

    Ekong was born August 30, 1963. He hails from Cross River State. Ekong attended Calabar Preparatory School, Calabar 1968-1974, Hope Waddel Training Institute, Calabar, 1974-1975; King’s College, Lagos 1975 -1980, University of Jos 1981-85 where he obtained the  Bachelor Of Laws Degree (LL. B. Hons) with Second Class Lower and in 1985-1986 he attended the   Nigeria Law School, Lagos where he obtained his Barrister at Law qualification with Second Class Lower.

    He  was  Chairman, Nigerian Bar Association (NBA), Calabar  branch (May 2011 – May 2013), Member Council of Legal Education, Member International Bar Association, Member Commonwealth Lawyers Association, among others.

  • Contempt: Court hears FHA Home MD’s suit tomorrow

    Contempt: Court hears FHA Home MD’s suit tomorrow

    The National Industrial Court of Nigeria will tomorrow hear a contempt application by Managing Director of FHA Homes Limited Mr Roland Igbinoba against the Managing Director/Chief Executive Officer of the Federal Housing Authority (FHA) Prof. Mohammed Al-Amin.

    The plaintiff, who is challenging his suspension, initiated contempt proceedings against Al-Amin and Haytuddeen Atiku Awwal (appointed to act in Igbinobia’s place) for their refusal to obey a June 19 court order directing his reinstatement.

    Justice Maureen Ewose had granted an order of interim injunction restraining the respondents, including FHA, FHA Homes and Prof Al-Amin, their directors or agents from implementing a June 2 letter by Al-Amin purportedly suspending Igbinoba.

    The court made an order directing the respondents to reverse all the steps taken by them based on the letter, and to restore the control and powers vested in Igbinoba as Managing Director pending the hearing and determination of his Motion on Notice.

    “Both parties in this matter are hereby ordered to maintain the status quo ante bellum until the Motion on Notice is heard and determined,” the judge held.

    The orders were made following an affidavit of urgency filed on Igbinoba’s behalf by his lawyer Mr Chukwun-weike Okafor.

    Igbinoba, in the contempt proceedings, stated that despite being served with the interim order, Al-Amin has refused to reverse the suspension, while Awwal has yet to vacate his Acting MD position.

    In the application for an order of committal dated June 30, Igbinoba is praying the court to commit both Al-Amin and Awwal to prison for disobeying the court order.

    The application is on the ground that Al-Amin had in various paid advertorials and interviews “acknowledged being aware of the court order of June 19, 2015.

    “The said Haytudeed Awal Atiku refused to vacate the position of the Managing Director wherein he said the third respondent (Al-Amin) has informed him not to vacate the said position.”

    The plaintiff is, therefore, seeking “an order of committal to prison custody of the third respondent for disobeying the order.

    In the second prayer, the applicant asked for “an order of committal to prison custody of Haytuddeen Awal Atiku (Acting Managing Director, FHA Homes Ltd)” for also disobeying the order.

    Igbinoba, in his originating processes, accused the Board of Directors headed by Al-Amin of not giving him an opportunity to defend himself against allegations against him before he was purportedly suspended.

    He was summoned to an emergency board meeting of the FHA Homes Ltd at the instance of Al-Amin where he was given the letter containing what he called unsubstantiated and frivolous allegations.

    He, therefore, asked the court to order his reinstatement and declare his suspension as illegal, null, void and of no effect.

    Igbinoba, a mortgage banking professional, had been head-hunted from his Lagos base to turn around the fortunes of the mortgage finance arm of the FHA in 2013.

    Al-Amin, who doubles as Chairman of the Board of FHA Mortgage Bank, directed Igbinoba to proceed on suspension so that allegations against him could be investigated.

    The decision to suspend him was said to have been taken on June 2 following a board consideration of an Interim Report of the Committee to reconcile the Authority’s Financial/Property Standing with FHA Mortgage Bank.

    Problems were said to have become apparent in January when Igbinoba reportedly handed over to the most senior Deputy Manager while proceeding on his annual leave. Al-amin was said to have reversed the action and replaced the Acting MD with another Deputy Manager, Awwal.

    On resumption, Igbinoba would not honour some of the transactions initiated by the acting MD and approved by Al-Amin, insisting they did not follow due process.

    Igbinoba, who was appointed on July 19, 2013, said due to the reforms he implemented, unaudited results for 2014 showed a profit before tax of N226 million, which he said was the first time in over a decade of the bank’s existence that it would make profit for two consecutive years.

    He said having brought the bank to some level of profitability and stability in the last two years, his suspension came as a surprise.

    On the in-house Committee Report by FHA, Igbinoba said he saw it for the first time during the emergency meeting. “If I had the opportunity of seeing the report before the emergency board meeting, I would have come with documentary evidence to refute the allegations levelled against me.

    “As it appeared I was already judged by the report as I did not get a chance of fair hearing or even defend myself. However, I have made efforts to provide some documentation to correct the misrepresentations in the report based on the available documentation I have at this time,” he said.

    On CBN’s Supervisory Report, Igbinoba said there were several anomalies in it, even as his management team was working on the relevant recommendations.

    “Some of the anomalies in the CBN report are that profit for 2013 is N27.09m whereas the same CBN approved audited report for the bank at N147m for the same year,” he said.

    On allegation of granting loans without board approvals, Igbinoba said: “We have not granted any loans without Board approval other than the loans that are within the approval limit of the Management Credit Committee.”

    On his alleged failure to open an Escrow account to warehouse the proceeds of sales of recapitalised assets of the bank, he said they are ongoing and are warehoused in several accounts, all of which are accounted for as shown in the audited report for 2013 and unaudited report for 2014.

    On allegation that he granted mortgage and personal loans to himself without disclosure and board approval, Igbinoba said he had never singlehandedly signed off on any loan in-spite of his approved limit.

    On employment of staff without recourse to the Board of Directors for approval, he said: “At no point have we employed new staff without the approval of the board. At present I do not have the details of the staff member(s) that falls under this category as claimed by the chairman.

    On his alleged failure to comply with the directives of the Board of Directors on the unilateral deployment of the Acting Heads of Finance and Operations, he said the redeployments were meant to address capacity issues, adding that the board committee resolved that it was justified.

    On his “failure” to comply with the directive of the supervisory ministry on the recall of former staff, he said: “Upon receipt of the letter from the Ministry, we respectfully sought for some clarifications and pleaded for their response. As at date we are awaiting the response from the ministry.”

    “I wish to state that the presentation of the FHA Interim Report of the Committee to Reconcile the Authority’s Financial /Property Standing with FHA Mortgage Bank at the last emergency meeting, and the decline to my request for time to present a written response with full documentation clearly indicates that I was not given a fair hearing before the decision to suspend me from office was taken at that meeting. Furthermore, I was confronted with the said report for the first time the day I was suspended.

    “Despite my several letters and reminder to the Permanent Secretary on these issues nothing has been done by the Ministry,” he said.

    Igbinoba accused Al-Amin of playing the role of chairman and CEO at the bank and interfering with its hierarchical structure bypassing the next most senior confirmed staff Mr. Zabura Usman and handing over to Awwal.

    The plaintiff said Awwal allegedly originated the N14.7 million Gwarimpa Branch renovation, with Al- Amin’s approval, without the Board or Board Finance and General Purpose Committee’s input.

    He added that Al-Amin reversed the redeployment of the Acting Head of Finance, which is strictly a management function, even though the Board Establishment Committee had backed the redeployment.

    Besides, Igbinoba said Al-Amin unilaterally replaced him as the representative of the Nigerian Mortgage Refinancing Company (NMRC) with Awwal.

    “Finally, it is important to state that the core reason for the victimisation and harassment from Prof Al- Amin is premised on his unilateral approval in my absence to renovate the bank’s Gwarimpa Branch with the sum of N14.7 million with a contractor.

    “The approval did not follow due process and was not considered either at the Board’s Finance & General Purpose Committee or at the Board level. I could not implement the award because of this reason.

    “He waited for the immediate past Hon. Minister of Lands, Housing and Urban Development, Dr. Akon  Eyakenyi to leave office before he perpetuated the illegal suspension.

    “On hearing of fraudulent contract approval and usurping of management functions in the bank, the Hon. Minister had clearly told Prof. Al-Amin to stop interfering with the reforms program that Mr. Igbinoba has been carrying out with huge success for the last two financial years of the bank.

    “But once the minister left on the  May 29, Prof Al-Amin called for the emergency meeting to illegally suspend me,” the plaintiff added.

  • Ortom moves against criminals

    Ortom moves against criminals

    Benue State Governor, Samuel Ortom has vowed to rid the state of armed robbers and kidnappers.

    He made the disclosure when the Executive committee of the socio-cultural organisation, Mdzough U Tiv, visited him at the Benue Peoples House in Makurdi.

    The governor said such criminal elements posed a serious threat to residents and investment in the state since no investor was willing to invest in an insecure environment.

    He said he was collaborating with traditional rulers, youths, as well as the Civilian Joint Task Force to rout the criminals.

    According to him he was happy that peace building efforts between Tiv farmers and Fulani herdsmen had started yielding results with the two groups signing a peace accord in Logo local government area after which they play a football game.

    Ortom appealed to citizens to forgive and reconcile with one another so as to create what he described as a new Benue.

    The Governor urged leaders of the group to shun partisan politics and promote unity of all Tiv people irrespective of political and religious affiliation.

    President General of the organisation, Chief Engr. Edward Ujege urged the governor to consolidate on peace building efforts between farmers and herdsmen started by the previous administration, the teaching of Tiv language in schools and support for Tiv Day.

  • Human rights violation: Businessman drags IGP, others to court

    Human rights violation: Businessman drags IGP, others to court

    A businessman, Gbenga Ajugu, has sued the Inspector-General of Police (IGP), Solomon Arase, over the alleged infringement of his rights by personnel of the Force Intelligence Bureau Annexe (FIB), Obalende, Lagos.

    Ajugu, the Managing Director of Microdigits Computers and Allied Services, instituted the suit before an Ikeja High Court after the police officers allegedly impounded his car and other valuable documents for over three months, to favour his business partner and M.D. Krypton Technologies, Sijuade Adewunmi.

    Joined as respondents with the IGP in the suit are the Commissioner of Police; one ACP Bankole; CSP Lawal; the Investigating Police Officer ( IPO) Siji Ogunniyi; Inspector Akindele of FIB; Krypton Technologies, Sijuade Adewunmi, as well as former employees of Microdigits, Ayodele Alade, Monsuru Aregbe and Akinyemi Olushola.

    Microdigits,  a firm that specialises in the installation of Close Circuit Television (CCTV), fire alarm gadgets among others, last year entered into partnership with Krypton technologies to render its services at a hotel in Abeokuta, Ogun State, where Krypton secured a contract.

    Following the satisfaction derived from the services rendered, another contract was awarded but disagreement over who would supply the gadgets for the new contract made the duo fall apart.

    The police had arrested and detained Ajugu as well as confiscated his properties and other documents following allegations by Adewunmi that he was owing him N2.5 million, just as they threatened to deal with him should he not pay the said debt.

    Ajugu who alleged that the FIB men were simply acting out a script written by Adewunmi with the directive of a Commissioner of Police (CP), said if the law enforcement agency had done their investigation,  they would have discovered that it was Adewunmi who was owing him.

    Alleging threats to life, Ajugu claimed Adewunmi had physically threatened to deal with him, accusing the police of perpetrating injustice.

    Narrating what transpired between them, Ajugu said trouble started between them after he refused the supply of CCTV Cameras to him from a man introduced by Adewunmi.

    He said: “Sijuade (Adewunmi) and his company, Krypton have never undertaken these kind of jobs before but saw it as an opportunity to explore and make money.

    “Meanwhile, Microdigits has got an impressive track record, so it was a jolly sweet beginning as our relationship blossomed and together we executed the first project in Abeokuta and left it at 70 per cent completion because other contractors were yet to finish up with the civil work.

    “Gladly Microdigits provided her impeccable tract record and Krypton used this to scout for other jobs, beginning with an Abeokuta job at a hotel called IBD hotels.

    “Sijuade Adewumi of Krypton and his senior partner (Tosin Adebowale) who got the job were so impressed and promised they would scout for more jobs so Micridigits would continue to be their technical partner.

    “By November last year, Krypton Technologies came with a blank Bill of Quantity (BoQ) from a company EMKAISER, with the prospect of securing another multimillion naira job.

    “Microdigits swung into action and delivered the expected pricing to execute the job and fine-tuned the technical details, Krypton on her part effected her financial expectations and presented to the main contractor.

    “Luckily, they won the job, and Krypton transferred cash to Microdigits to begin work. Within the first week, Microdigits moved the job to 70 per cent and then the executive director of the main contractor was very impressed and gave another job which was to fix the fire-alarm systems.

    “Thus Microdigits’ contract moved up from N6million to N12.7 million. The value of Kryptons’ contract was however kept close to Sijuade’s chest.

    “Trouble started when I was to go to Dubai to secure products (CCTV Cameras) for the project because they are never stocked by Nigerian companies. This did not go well with Sijuade who preferred a guy who could supply the products to Microdigits.

    “But I didn’t want to stake over N5million on a man I barely know, but rather would spend a few hundreds of thousands to go buy the products from Dubai, with attendant peace of mind.

    “Sijuade became visibly angry and hostile, but I knew that it’s my call and responsibility to get the required product as the technical person and of course as required by my contract.

    “Thus, I went to Dubai, had a good deal with the original manufacturer of the products, and came back to Nigeria, paid and installed the products, and waited for more money from Krypton, but was shocked when Sijuade ‘fired’ me.

    “He connived with my boys, (who claimed they would finish the job without their boss), and within twenty four hours resumed to take up my job.”

    He said because Adewunmi allegedly has a relationship with one Assistant Commissioner of Police, he wrote a petition claiming he defrauded him of N2.5 million, whereas, he (Ajugu) was being owed N6.7million by Adewunmi’s company.

    “The federal police instead of advising the complainant that they are not constitutionally empowered to intervene in civil matters, immediately, without caution or regard for organised business laws in the country decided to be a judge in their own court hence broke the law they have  sworn to protect by impounding without a court warrant my personal car; a Honda SUV car with all the original papers.

    “They refused to see the matter as a pure business transaction between two duly registered companies, and not a crime committed by an individual even with mounting evidences to suggest that it’s a pure civil matter.”

    While denying being indebted to Adewunmi,  Ajugu said they agreed on a payment regime of 40, 40, 15 and five percents, adding that their labour and other cost was part of the N6million that they were supposed to get.

    “To this we agreed, and by November 21, we got an alert of N1.6million credited to our account from Krypton technologies to start the cctv job. It was a bank transfer from Krypton technologies to Microdigits.

    “Immediately I brought in my men and equipment, we swung into action even though we expected the promised  40 per cent (N2.4 million) but we got less than that.”

    Since the company was impressed with the job done, Ajugu said they were awareded the next aspect, which was installation of the fire alarm systems valued at N4.7 million.

    “Looking at the drawing, I discovered that there would be a possible flaw in the overall execution of the CCTV job, so I wrote a memo for an adjustment, and forthwith it was approved, and this added N2million to the CCTV job, making it N8 million.

    “On December 5, we received payment of N1million from Krypton technologies to start the fire alarms systems, and forthwith we started work and by December 13, the first phase of the job was almost done, which is cabling and it accounts for 70 per cent of the whole job.

    “Sijuade released N3.4million into our company account on December 19 while I was in Dubai.  With the released fund, I was able to buy 33 units of cameras (out of about 57 ) and 60 units of smoke detectors and more needed cables to compensate for the flaws in the calculations of the BoQ.

    “I told Sijuade we needed more money to move on with the project, and I was shocked when he said I should itemise and analyse everything I had bought.

    “By that time, we have been paid N6million out of N12.7 million naira (less than 50 per cent payment made to us), and we had taken the job to 80 per cent completion.”

    In his submission, Adewunmi however denied owing Ajugu, accusing him of abandoning the project and going on a luxury trip to Dubai.

    “During the process of carrying out one of the contracts, funds where remitted into the accounts of Microdigits for the purpose of effecting the contractual obligations.

    “Unfortunately, instead of purchasing the necessary materials to perform the contract, Ajugu went to Dubai leaving the project unfinished having diverted the sums for personal use i.e. purchase of car and luxurious living.

    “On his return, I asked Ajugu to render account of what has been done so far on the project and how the funds disbursed to him have been used.

    “He failed to provide satisfactory answers to the query nor was he able to provide the outstanding funds for the project. Consequently, he was relieved of the project.”

    Adewunmi alleged that his company was indebted to the tune of N3million  on the project, which prompted his involvement of the police for proper investigation.

    He averred that Ajugu’s suit was to circumvent the investigative powers of the police, urging the court to dismiss it.