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Tag: Diamond Bank Plc

  • Access Bank, Diamond Bank shareholders approve merger

    Shareholders of Access Bank Plc and Diamond Bank Plc on Tuesday unanimously approved the merger of both financial institutions aimed at creating a formidable force.

    The News Agency of Nigeria (NAN) reports that the shareholders gave the approval at an Extraordinary General Meetings (EGMs) of both banks held in Lagos.

    Mr Herbert Wigwe, Access Bank Chief Executive Officer, told the shareholders at the EGM that the merger with Diamond Bank enables Access Bank to acquire a bank with 17 million retail customers and the most viable mobile payment platform.

    Wigwe said that the expected revenue and cost synergies were material and promises significant long term value.

    Wigwe said the bank, after the merger, would attract more opportunities such as trade finance from international partners.

    “With the final merger of both banks and the status of the resulting entity as ‘the largest bank in Africa’s largest economy,’ this greatly bolsters the bank’s brand, opening doors of opportunity both in local and international markets,” he said.

    Wigwe said the merger was expected to produce the largest banking group in Africa based on its number of customers with more than 29 million customers.

    “The resulting entity which will maintain the brand name Access Bank, but with Diamond Bank colors, will have more than 29 million customers, 13 million of which are mobile customers,” he said.

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    Wigwe said the bank would be a continental force with presence in 12 countries, 3,100 ATMS and nearly 32, 000 Point of Sale.

    “As a continental financial force, it is set to attract more opportunities such as trade finance from international partners seeking multinational lenders with local intelligence,” he said.

    He said Diamond bank merging with “Access Bank also means, the former’s customers can enjoy access to the latter’s strong balance sheet, ubiquitous presence and solid operational structure.”

    “Diamond Bank has formidable retail business with the largest retail customer base in Nigeria – over 17 million customers. Diamond Bank also has a track record of customer acquisition and low cost liabilirties generation.

    “The enlarged Access Bank will serve 27 million retail customers, almost double the number customers of any other bank in Nigeria and more than any other bank in Africa, “ Wigwe said.

    He noted that the enlarged Access Bank’s breath scale and product range will further accelerate the financial inclusion agenda that Access Bank and Diamond Bank had pursued separately.

    Wigwe, however, assured enlarged shareholders of the bank that dividend would be more robust and consistent after the exercise.

    Mr Adebayo Adeleke of Independent Shareholders Association (ISAN) commended the management of Access Bank for not shortchanging shareholders on the scheme of the merger.

    “Quiet a lot of commendable things have been put in place and we hope court will have no other reason not to agree on the merger,” Adeleke said.

    Adeleke said that the shareholders were in support of the plan that would give birth to one of the largest bank in Africa.

    “We are here to make sure we sanction this wedding and hope to see a marriage of a formidable force,” he said.

    He said that shareholders would want to see the birth and growth of new bank that would take challenges and takeover the entire world.

    To the President, Trusted Shareholders’ Association of Nigeria (TSAN), Alhaji Muktar Muktar, “we thank Access Bank for saving us from Diamond Bank by giving us a good deal.

    Muktar said that the bank gave them the best deal which was above Diamond Bank price on the Nigerian Stock Exchange.

    Sir Sunny Nwosu, National Coordinator (Emeritus), ISAN, who also commended Access Bank for the merger, called for special dividend to cushion the effects of dilution on shareholders.

    Nwosu said integration would not be a problem for Access Bank because it had managed many “marriages” in the past.

    NAN

  • Diamond Bank appoints Babade new chairman

    Diamond Bank Plc has appointed Mr Dele Babade as its new acting chairman.

    Babade succeeded Mr Oluseyi Bickersteth, who recently resigned as a director and chairman of the bank.

    In a statement signed by Company Secretary and Legal Adviser, Diamond Bank Plc, Uzoma Uja, the bank indicated that Babade’s appointment took effect on December 24, 2018.

    The new acting chairman was first nominated by First Carlyle Growth V (Carlyle) and his appointment as a non-executive director was approved by the Central Bank of Nigeria (CBN) with effect from April 20, 2017. Carlyle is one of the major shareholders in the bank.

    Babade is expected to oversee the business combination between Access bank and Diamond Bank Plc. The transaction is projected to be completed in the first half of 2019 and will see Access Bank as the post-merger bank.

    The Memorandum of Agreement and announcement of headline terms valued Diamond Bank at approximately NGN72.5 billion, about $200 million. The business combination will see Diamond Bank shareholders receiving N3.13 per share in cash and shares. Diamond Bank shareholders will receive a consideration comprising of N1.00 per share in cash and the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

    The business combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients. It will brings together treasury, risk management and corporate banking expertise with strong retail and digital banking capabilities to create a financial institution operating across the full suite of products for all customer segments.

    Access Bank plans to leverage the best talent of both banks and combine them to create a leading banking franchise in Nigeria. The combined bank will be led by Access Bank’s current CEO, Herbert Wigwe, and will retain the Access Bank name. It is intended that the brand will be redesigned to include strong elements of Diamond Bank’s digital and retail brand.

    Chief Executive Officer, Diamond Bank Plc, Mr Uzoma Dozie, said the merger was positive for all of Diamond Bank stakeholders, including customers, employees and shareholders.

    According to him, Diamond Bank’s customers will benefit significantly through the unrivalled combination of the best of Diamond Bank’s retail and digital leadership with the size of Access Bank’s balance sheet, corporate names and geographical reach.

    “In reaching this decision, the shared passion for leveraging Nigeria’s youthful and entrepreneurial talent and a commitment to better outcomes through financial inclusion have convinced us that this is the right combination. I believe that the combination of two strong and admired brands, with shared values and complementary strengths, will be a strong force for positive change in the Nigerian and African retail landscape. As a result, this merger creates significant potential for sustainable long-term growth which stands to benefit customers, employees and shareholders alike,” Dozie said.

    Babade holds Bachelors and Master’s degrees in Laws from University of London and was called to both the Nigerian and English Bar.

    He currently serves as Chairman of the Africa Risk Capacity Pan African Insurance Company (ARC Ltd) and is also the Chairman of its Finance and Investment Committee. ARC Ltd is a financial affiliate of the African Risk Capacity, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

  • Court adjourns bank’s N212m debt suit

    The Federal High Court in Lagos will on June 25 hear a suit by Diamond Bank Plc against Eko Akete Engineering and Construction Company Ltd.

    Justice Chuka Obiozor adjourned due to time constraints after the plaintiff’s counsel Ifeoma Odide informed him that the bank was ready for trial.

    The bank’s Ajah Branch Manager Stella Ekhator was present when the case came up, but the defendants were not represented.

    Diamond Bank is claiming N212, 052,898.22 from Eko Akete Engineering and its Managing Director Chief Fouad Ade Oki as at March 31, 2016.

    The bank said the sum represents principal and accrued interest arising from various facilities granted the firm and guaranteed by Oki.

    Diamond Bank is also claiming compound interest at 22.19 per annum on the sum from March 31, 2016 until judgment and thereafter at the rate of 15 per cent per annum until final liquidation of the judgment sum.

    Read Also:Court to Buhari: Order EFCC, others to release report on budget padding

    The plaintiff is praying for an order permitting it to retain ownership and control of the defendants’ fixed and floating assets “until the final liquidation of the requested sum with interest or until the charged property and assets are sold”.

    The bank said it approved the defendants’ request for a term loan facility of N75million for the purchase of heavy duty equipment and to fund the construction of Suleimon Soderu bypass in Ikorodu area of Lagos, at an agreed 21 per cent interest.

    The plaintiff said it later granted two other loan facilities of N36million and N55.5million to the defendants, adding that the defendants utilised the facilities, but refused to fund its account.
    Diamond Bank said the firm requested for extension of the loan facilities totaling N96, 124,118.90 to enable it meet its increasing obligations and liquidate the indebtedness, which was granted.

    The bank said despite granting an extension of the outstanding loan facilities and not charging a late penalty fee of one per cent, the firm “still failed, refused and neglected to settle its outstanding indebtedness to the plaintiff.”

    The plaintiff said it wrote the firm on February 27, 2015 demanding full payment of the total outstanding sum of N160.4million, yet the first defendant “still failed, refused and neglected” to pay the debt.

    The bank said a law firm, Jurislaw, which it engaged to recover the debt, also wrote to the firm on June 1, 2015 and to Oki on October 7, 2015, yet they allegedly refused to liquidate the debt.
    “As at March 31, 2016, the first defendant’s outstanding debt on the loan facilities plus accrued interest was N212, 051,898.22,” the bank said.

    Trial has commenced in the case, but the defendants are yet to file their responses.

  • Court orders forfeiture £578,080.00 ‘stolen’ from NIMASA

    Court orders forfeiture £578,080.00 ‘stolen’ from NIMASA

    The Federal High Court in Lagos Monday ordered the forfeiture of £578,080 (about N292 million) allegedly stolen from the Nigerian Maritime Administration and Safety Agency (NIMASA) and hidden in a Diamond Bank Plc account.

    Justice Saliu Saidu made the order based on an application by the Economic and Financial Crimes Commission (EFCC).

    The money was found in an account of a maritime firm, ZAL Marine Limited, EFCC said.

    The forfeiture motion, moved by EFCC’s lawyer Rotimi Oyedepo, was anchored on Section 17 of the Advance Fee Fraud and Other Related Offences Act 2006.

    Oyedepo said the money sought to be forfeited was reasonably suspected to be proceed of unlawful activity.

    “An application of this nature is designed to prevent the dissipation of funds/ property that is suspected to be proceeds of crime found in possession of any person without necessarily convicting the suspect in whose custody the property is found,” the lawyer said.

    An investigating officer Musbahu Abubakar said EFCC received intelligence on monumental fraud in NIMASA and that part of the proceeds of the fraud was transferred to ZAL Marine by NIMASA employees – Irene Macfoy and Chukwuemeka Emmanuel.

    He said Macfoy allegedly used her position as an Assistant Director and Head of Nigerian Seafarers Development Program to facilitate the fraudulent transfer of £1,074,600.00 from NIMASA’s Zenith Bank (UK) account to an offshore account belonging to Swiss Bulk Carriers S.A.

    It was allegedly under the false pretense of training 54 nautical science and marine engineering students on March 16, 2013.

    “Out of the said £1,074,600.00, the respondent (NAL Marine), without any contractual relationship with NIMASA, also fraudulently received and retained the sum of £578,080.00 from Swiss Bulk Carriers S.A.

    “The fund was transferred from NIMASA’s Account without any Parastatal or Ministerial Tender Board approval and/or contract with NIMASA.

    “There was no contractual relationship or agreement that existed between NIMASA, Swiss Bulk Carriers S.A and the respondent to warrant this fraudulent transfer of the funds sought to be forfeited,” the operative said.

    According to him, before effecting the fraudulent transfer to Swiss Bulk Carrier S.A, the mandatory value added tax remittance to the Federal Government was unlawfully evaded.

    “The respondent is a front company to Mrs. Irene Macfoy, an Assistant Director with NIMASA and the Head of the Nigeria Seafarers Development Programme.

    “The respondent is an agent of Swiss Bulk Carriers S.A who fraudulently retained and converted to their use, the total sum of £496,520.00 out of the said £1,074,600.00.

    “The respondent is reasonably suspected to have conspired with others to steal the above fund from the Federal Government of Nigeria,” Abubakar said.

     

     

  • ‘Hidden’ N249b: Court strikes out FG’s case against seven banks 

    ‘Hidden’ N249b: Court strikes out FG’s case against seven banks 

    …Six banks get N200, 000 compensation each

     

    A Federal High Court in Lagos has struck out a suit by the Federal Government seeking to recover $793,200,000.00 (about N249, 659,700,000.00) from seven banks which it claimed they hid for ‘unknown’ government officials.

    The banks are: United Bank for Africa Plc, Diamond Bank Plc, Skye Bank Plc, First Bank Ltd, Fidelity Bank Plc, Keystone Bank Ltd and Sterling Bank Plc.

    Justice Chuka Obiozor, who gave the ruling yesterday, also ordered the government to pay N200,000 as costs to all of the commercial banks except Skye Bank which had no legal representation.

    He also barred the government from bringing the same action against the banks without the court’s permission.

    The ruling followed a notice of discontinuance dated August 7 brought on Tuesday by the Attorney-General of the Federation through Professor Yemi Akinseye-George SAN.

    Akinseye-George told Justice Obiozor that the government had decided to explore an ‘out of court settlement’ with the banks in the public interest.

    Last July 20, the government accused the banks of hiding $793m in contravention of the Treasury Single Account (TSA) policy.

    It sought and obtained an interim order directing the banks to remit the sum to a designated account at the Central Bank of Nigeria (CBN).

    But on Tuesday the Federal Government applied to discontinue the suit on the instruction of the Attorney-General.

    Akinseye-George relying on Order 50 Rule 2 Subsection 1, Federal High Court Civil Procedure Rules of 2009, moved the court to strike out the suit.

    The application was challenged by the six banks which urged the court to substitute the strike out order for an order of dismissal.

    The lawyers, including UBA’s counsel, Dr. Ajibola Muraina, Seyi Sowemimo (SAN) for Fidelity Bank; Abimbola Akeredolu (SAN) for Sterling Bank. N. A. Oragwu (Diamond Bank); E.A. Okorie (First Bank) and Babatunde Ogungbamila (Keystone Bank) also asked for costs of between N10million and N20million for each bank as compensation or damages.

    However, following Akinseye-George’s argument that the banks were not entitled to any cost because, among others, they did not file any affidavit to particularise the nature of the damage they claimed to have suffered, Justice Obiozor adjourned till Wednesday for ruling.

    Delivering his decision Wednesday, the judge found, among others that since the suit did not proceed to trial the justice of the case was in favour of an order to strike it out, rather than a dismissal.

    He said: “I have also considered the reason given for the discontinuance – the demand, as it were, of public interest. I have also considered the fact that when a notice of discontinuance is duly and validly filed, it cannot be recalled, as the suit ceases to exist the moment it is effectively discontinued, subject to the payment of costs.

    “I find that as I have not adjudicated on claims in the action before me for a pronouncement on the merits of the issues arising therefrom, the proper order to make, with respect to this matter, is one striking out this suit and not of dismissal and I so hold.

    In the instant case before me, the matter is yet to proceed to trial. I do not find that the justice of this case demands that this matter should be dismissed.

    Regarding the costs demanded by the banks, the judge said: “Nevertheless, I shall not turn a blind eye to the effect of the interim order on the defendants. This case cannot now go on. I find no reason not to compensate the defendants with costs at least to those of them who have appeared in this matter.”

    He however declined to grant the amount demanded as costs, saying “I find the request for N10million or N20million as costs to the defendant not to be founded on, with respect, established principles.”

    The judge added: “The defendants deserve compensation which I assess and put at N200,000 against the favour of and to be paid to each of the first, second, fourth, fifth sixth and seventh defendants.

    “In the final analysis, the suit is hereby struck out and the plaintiff shall not re-list this suit without the prior leave of court. The interim order of this court made on the 20th of July 2017, are hereby set aside, truncated and discharged.”

  • Lawyer sues Access Bank for failed N40, 000 ATM Transaction, demands N100m

    Lawyer sues Access Bank for failed N40, 000 ATM Transaction, demands N100m

    Mr Musa Baba-Panya, an Abuja-based Legal Practitioner has instituted a suit in the FCT High Court against Access Bank Plc claiming N100 million for alleged defamation of his character.

    Mr Chidi Ifeonye, the counsel to the plaintiff, who filed the suit on May 26, made the process available to newsmen on Wednesday in Abuja.

    The plaintiff had instituted the suit as a result of the bank’s failure to reverse the N40, 000 he claimed was debited from his Diamond bank account while using the defendant’s ATM facility on March 11.

    The plaintiff had described N100 million claims as general, aggravated and punitive damages for the defamation.

    Baba-Panya said that the defendant’s alleged recalcitrant attitude caused him grave embarrassment, hardship and trauma.

    “After a considerable waiting, no response of any sort came forth from the defendant, till date, thus was left with no option than to institute this action,’’ he said.

    The plaintiff averred that the money in debt was meant to execute a printing project at the ECWA Church, Maitama on that fateful day.

    “The development was most unpleasant to both the printer and I. It especially put me in unwarranted ridicule and scrutiny among the Church folks,’’ he said.

    The plaintiff is seeking a declaration finding the defendant liable for the defamation of his character via its negligent conduct against him.

    The plaintiff is also urging the court to compel the bank to write a letter of apology copying the Customer Relation Manager platforms of the CBN-interbank system.

    He also prayed for apology letter to be forwarded to the Customer Relation Manager of Diamond Bank Plc and to the ECWA Church, Maitama, Abuja.

    Baba-Panya was also seeking the award of N40, 000 being the alleged liquidated money in debt.

    He also sought an interest award at inter-bank rate on the money debt effective March 11, until final judgment.

    The plaintiff further asked for award of 10 per cent interest on the final judgment sum until final liquidation.

    He urged the court to grant him an award of N500, 000 as cost of legal cost, including solicitor’s fees.

    The matter has however not been slated for hearing.

  • Fashion designer in court for allegedly cheating corps member

    A 35-year-old fashion designer, Cecelia Agu, is standing trial in a Karu Grade 1 Area Court, Abuja, for allegedly cheating a corps member to the tune of N90,000, but was granted N 200, 000.

    The judge, Malam Hassan Ishaq, who granted the bail, also ordered Agu to produce a surety in like sum.

    He adjourned the case till May 10 for hearing.

    Agu had denied committing the offence that contravened Section 322 of the Penal Code.

    Earlier, the prosecutor, Mahmud Ismail, had informed the court that one Grace Akinlabi, on April 13, reported the matter at the Maitama Police Station.

    He said that the complainant alleged that towards the end of her National Youth Service Corps (NYSC) programme in October 2016, she approached the defendant to train her in sewing.

    “ The complainant met the defendant whose shop is located at Wuse, Abuja, for a three-month apprenticeship course, and Agu charged her N135, 000.

    “ After they both agreed to the amount, the complainant made a cash deposit of N 90, 000 into the Diamond Bank account of the defendant in December 2016,’’ Ismail said.

    The prosecutor told the court that after receiving the N 90,000, the defendant called the complainant on phone to tell her to hold on for a while.

    “ She told her that she has to wait until she gets new apprentices, then she can join them to learn.’’

    The prosecutor told the court that after waiting for four months, Akinlabi approached the defendant to refund the money due to breach of agreement.

    He said that the defendant admitted to committing the offence during police investigation.

     

  • Court adjourns suit against Diamond Bank till March 8

    Court adjourns suit against Diamond Bank till March 8

    The National Industrial Court, Abuja, has fixed March 8 for the hearing of a case instituted by one Mr Luke Inaboya, against the Diamond Bank Plc, challenging termination of his appointment.

    Inaboya, an Internal Auditor in the bank, is challenging the purported termination of his appointment in November. 2011.

    The claimant prayed the court to declare the action of the bank as wrong.

    The aggrieved auditor is also asking the court to order for the payment of all his salaries, entitlements and other benefits due to him from 2011 till date.

    At the resumed hearing on Monday, the trial could not go on because the respondent’s counsel, Miss Josephine Akwere, told the court that she had the defendant’s memoranda of appearance to file.

    Counsel to the claimant, Mr Alex Teru, who did not oppose the motion, equally told the court that he had a pending application.

    Teru told the court that he is seeking for an extension of time for the claimant to file his reply to the respondent’s defence.

    The application was not opposed by the respondent’s counsel, while the judge, Justice Edith Agbakoba,  adjourned the case till March 8 for hearing.

  • Court restrains R.T. Briscoe from access to funds over N2.5b debt

    Court restrains R.T. Briscoe from access to funds over N2.5b debt

    *Firm: We’re not indebted to bank

    The Federal High Court in Lagos has restrained an automobile and generator company, R.T. Briscoe Nigeria Plc, from withdrawing its funds in any bank over an alleged N2.5billion debt owed Diamond Bank Plc.

    Justice Ibrahim Buba granted an order of interim injunction restraining the company, its directors or management from “operating, withdrawing from or otherwise tampering with the respondent’s funds in any bank of financial institution within Nigeria.”

    The order, the judge said, will subsist until the bank’s application for the appointment of a provisional liquidator for the company is heard and determined.

    Justice Buba also made a consequential order compelling the affected banks where R. T. Briscoe has accounts to furnish Diamond Bank or its firm of solicitors with details of credit outstanding in the company’s accounts within seven days.

    The judge further barred R.T Briscoe from alienation, dissipating or transferring its fixed and moveable assets, properties, machinery and tools of trade until the bank’s application for appointment of a liquidator is determined.

    Diamond Bank, in its winding-up petition, said R.T Briscoe is its long-standing customer since May 2012.

    It said it availed the bank global facilities which include an overdraft facility, letter of credit facility and term loan, which were all availed in tranches.

    The facilities, the bank said, were for the purchase of Toyota brands of vehicles and spare parts, importation of Atco brand of generators and compressors, purchase of a piece of land in GRA, augmentation of its working capital, among others.

    The bank said following a Central Bank of Nigeria (CBN) directive on non-performing loans, it made a demand for the recovery of total overdue loan obligations of N712,488,921.67 and a total outstanding indebtedness of N2,529,687,108.86 as at last June 3.

    Diamond Bank said it agreed to restructure the credit facilities by revising the repayment schedule, yet the company “willfully failed and/or neglected to liquidate the indebtedness in accordance with the strict adherence to the revised schedule.”

    “The respondent is still heavily indebted to the petitioner in the sum of N2,478,284,729.88 as at May 2016,” the bank told the court through its lawyer Kunle Ogunba (SAN) of Insolvency Forte.

    The bank said R.T Briscoe is “insolvent and unable to pay its just and legitimate debts”, and should, therefore, be wound-up by the court in line with sections 409(1) and 410 (1) (b) of the Companies and Allied Matters Act of 2004.

    But, R.T Briscoe has urged the court to discharge or set aside the interim order of injunction because the bank allegedly suppressed and misrepresented material facts to the court.

    The company said the Companies Winding Up Rules require the petitioner to make the application for injunction on notice rather than ex-parte.

    “There are third party interests being adversely affected by the interim order of injunction granted against the respondent,” R.T Briscoe said.

    The company denied being indebted to the bank to the tune of N2.5billion as at May “or at any time”.

    It claimed to have been servicing its loan obligations monthly despite awaiting the final approval for the loan restructuring.

    R.T Briscoe said its business has been “crippled” by the order as no staff or contractors or suppliers could be paid.

    “It is in the interest of justice to set aside and discharge the interim order of injunction,” the company added.

    Justice Buba adjourned until July 8 for hearing.