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Tag: Ecobank

  • Honeywell appeals freezing of accounts by Ecobank

    Honeywell Flour Mills Plc has appealed against partial freezing of its accounts by the Federal High Court in Lagos following an application by Ecobank Nigeria Limited.

    The court had, following an ex-parte application by the bank’s lawyer, Mr. Kunle Ogunba (SAN), restrained chairman of Honeywell Group, Dr. Oba Otukedo, the company’s directors and subsidiaries from withdrawing from any bank or financial institution.

    But Honeywell, through its lawyer, Chief Wole Olanipekun (SAN), sought to discharge the order, contending that it was an abuse of court process.

    Ruling, Justice Mohammed Yunusa had held that the company could withdraw up to N60million in a month pending when the suit is heard and determined.

    Justice Yunusa said he was inclined to vary the orders to enable Honeywell Group meet its financial obligations by withdrawing N15million only per week.

    Dissatisfied with the ruling, Honeywell appealed, insisting that it wants full access to its funds.

     

  • Court strikes out Honeywell’s contempt charge against Ecobank

    Court strikes out Honeywell’s contempt charge against Ecobank

    The Federal High Court in Lagos Friday struck out a contempt charge filed against Ecobank Nigeria Limited by Honeywell Flour Mills Plc.

    Justice Ibrahim Idris held that the Form 48 and Form 49 (with which contempt proceedings are initiated) were not properly served on the alleged contemnors.

    The judge declined jurisdiction, but directed parties to maintain status quo until the order is set aside by the Court of Appeal.

    The judge said a party seeking to jail another for disobeying a court order was duty bound to ensure that processes in contempt proceedings were duly served.

    Breach of such proper service, he said, “will wrought consequences on the proceedings.”

    Honeywell and its sister companies Anchorage Leisures Limited and Siloam Global Services Limited accused the bank of disobeying an earlier directive by the judge that all parties should maintain status quo ante-bellum.

    They sued Ecobank over disagreements regarding an alleged debt owed the bank by the group.

    Justice Idris had last August 10 made an order of interim injunction restraining the bank from publishing the plaintiffs’ name as debtors.

    The judge also ordered parties to maintain status quo pending hearing of the plaintiffs’ suit against Ecobank.

    But while the suit was pending, Ecobank filed other suits before other judges in a bid to recover its debt from Honeywell Group and its chairman Oba Otudeko.

    Honeywell, through its lawyer Chief Wole Olanipekun (SAN), filed the Form 48 and Form 49, urging the court to hold the bank in contempt.

    Declining jurisdiction, Justice Idris held: “What I can see from a close examination of form 48 is that the form is stamped; the wordings are however illegible. I can see that the stamp has the date of 19th November 2015. The same applies to Form 49.

    “A valid proof of service of the same forms must have endorsed therein the following, as stated by the Court of Appeal: (1) particulars of the person serving; (2) date of service; (3) time and place of service and (4) the person that accepted the service.

    “I’m afraid that it appears that the Form 48 and 49 were not properly endorsed with the particulars of service. In effect, there is no reliable or authentic information before the court as to the service of the Form 48 and 49 on the defendants herein.

    “This issue goes to the issue of the jurisdiction of the court. This court must act with caution. I decline jurisdiction.”

    He, however, warned parties against taking any action that could incur the court’s wrath.

    “Let me warn that orders of court are binding and enforceable until set aside by an order of court of competent jurisdiction. The order of this court that the parties maintainstatus quo ante bellum remains valid and binding on all the parties until set aside.

    “Whenever the disciplinary jurisdiction of this court is properly invoked, this court will descend heavily without any fear on whichever party is found guilty of contempt of this court. This court barks and it bites.

    “I hold that the jurisdiction of this court has not been properly invoked in respect of the contempt proceedings and same is hereby struck out,” Justice Idris held.

    He adjourned till February 26 for hearing of Ecobank’s motion for stay of proceedings.

  • Ecobank Nigeria inaugurates agency banking

    Ecobank Nigeria inaugurates agency banking

    Ecobank Nigeria has commenced Agency Banking Services, enabling its appointed agent partners to carry out banking services on its behalf.

    Agency banking is designed to increases the bank’s retail distribution network allowing it provide basic banking services to its customers as well as offer payment services such as bank transfers, bill payments and airtime top to the general public. It is also intended to offer basic banking services to the under-banked and while providing extended hours for available banking services in the customers’ neighborhood.

    Announcing the commencement of the Ecobank Agency Banking service in Lagos, Head, Cards and e-Banking, Ayotunde Kuponiyi, said it is part of the bank’s distribution strategy to take banking service to the door-step of the customer.

    “This is extending our banking services to consumers’ neighborhood to offer even greater convenience and accessible financial services in a cost effective and secure manner,” he said.

    Kuponiyi listed Ecobank agents partners which are offering this service in Lagos as Buymore Supermarket chain (in Agungi-Lekki, Kilo Surulere, Ikeja GRA), Kenzo Retail Supermarket chain (in Lekki, Festac and Apapa) and Save-a-Lot Supermarket in Egbeda.

    He maintained that more locations are coming up in Lagos and other major cities and towns across the country.

    Banking services provided by the agency banking include opening Ecobank Quick Account, cash withdrawal and deposit into Ecobank accounts; funds transfers into any bank account in Nigeria, bills payment (utilities, cable subscription, etc), mobile phone airtime topup amongst other services.

    Ecobank Agency Banking, which is the first of its kind in Nigeria, is aimed at offering affordable access to financial services to promote and deepen financial inclusion in the economy.

  • ‘Honeywell not indebted to Ecobank’

    Honeywell Group is not indebted to Ecobank Nigeria Limited, according to the Bankers Committee (Sub-committee on Ethics and Professionalism).

    The Committee ruled that an agreement for Honeywell to pay the bank N3.5billion as full and final payment was valid “and should be complied with.”

    Ecobank has five pending applications at the Federal High Court in Lagos. Three are before Justice Mohammed Yunusa; two before Justice Okon Abang.

    The bank is seeking to recover an alleged N4.1billion debt owed it by Honeywell Flour Mills Plc and its sister companies.

    Honeywell also has a pending suit before Justice Mohammed Idris. The suit follows disagreements between it and Ecobank as to the complete liquidation of the group’s outstanding obligations to the bank having regards to the terms and conditions of the credit facility.

    The Bankers Committee’s June 26 report, addressed to Ecobank Managing Director/Chief Executive, was signed by the Secretary, Sub-committee on Ethics and Professionalism, ‘Seye Awojobi, with reference number ODA/FMA/BUO/1493.

    The committee said it received a petition that the bank was “attempting to renege on a settlement agreement” on facilities it granted to Anchorage Leisures Limited, Siloam Global Services Limited and Honeywell Flour Mills Plc.

    The Committee said: “After several offers and counter offers with respect to the amount for the settlement, the parties agreed at the meeting of 22nd July, 2013, involving your bank’s MD/CEO and the Honeywell Group Chairman that Honeywell would pay N3.5billion in full and final settlement of the indebtedness of the three companies. It was also agreed that Honeywell would immediately proceed to pay  N500million as a sign of faith towards the agreement.”

    According to the report, Honeywell paid N500 million to the bank on July 23, 2013, and completed payment of the agreed N3.5 billion on January 10, 2014. Thereafter, the group requested for a letter of discharge from the bank.

    However, the bank, in a November 14, 2014 letter to Honeywell Group, claimed that the N3.5billion was a partial payment, and that the agreement that the sum was in full and final settlement was an “in principle understanding”.

    The bank also stated that Honeywell Group’s Chairman was a “related party” to the transactions, hence the request for a discharge letter could not be granted.

    The Committee found that it was not in dispute that Ecobank’s management consummated an agreement on July 22, 2013 with Honeywell Group to accept N3.5billion in full and final settlement.

    It further stated that  when the transactions were consummated with Oceanic Bank Plc (legacy bank), Honeywell Group’s Chairman was neither on the board of the bank nor the board of Ecobank Transnational Incorporated, the parent company.

    The Bankers’ Committee said based on clarifications from the Banking Supervision Department of the Central Bank of Nigeria (CBN), he was not a “related party” to the transactions as he was not on Oceanic Bank’s board when the transactions were consummated.

    “After due consideration of findings, the sub-committee ruled that the agreement between the borrower and your bank to pay the sum of N3.5billion as full and final payment of the borrower’s indebtedness is valid and should be complied with and this was ratified by the Bankers Committee,” the report stated.

    The cases before Justice Abang and Justice Yunusa will come up on January 13; while the one before Justice Idris will come up on January 15.

     

     

  • Ecobank appoints Charles Kie as MD designate

    Ecobank appoints Charles Kie as MD designate

    Ecobank Nigeria has announced the appointment of Mr Charles Kie, an Ivorian national, as the new Managing Director Designate of the bank.

    The bank said in a statement on Tuesday in Lagos that the appointment would take effect on Jan. 1, 2016, but would be subject to the approval of the CBN and meet other regulatory requirements.

    The statement said Kie was appointed after a selection process which included internal and external candidates.

    The bank said that until Kie’s appointment, he was the banks group executive responsible for leading the corporate and investment banking business across 40 countries, 36 of which were in Africa.

    “Charles Kie represents ETI on the Board of Directors of EBI.SA, the Ecobank subsidiary in France as well as Ecobank Development Corporation (EDC), the investment banking arm of the Ecobank Group.

    “Kie joined Ecobank in October 2011 as Chief Operating Officer of the then Ecobank Capital and was subsequently appointed the Head of the Group’s Corporate Banking business.

    “Between 2008 and 2011, Charles Kie was Group CEO of Groupe Banque Atlantique, based in Togo and Cote d’Ivoire.

    “Groupe Banque Atlantique (now majority owned by Banque Centrale Populaire of Morocco) had operations in eight countries in West Africa and one in Central Africa as well as a representative Office in Paris (France).

    “Kie also had a successful career with Citibank between 1997 and 2008, rising to the position of CEO of Citigroup West Africa between 2004 and 2008.

    “Kie, a graduate of Ecole Superieure de Commerce d’Abidjan (Cote d’Ivoire), has an MBA from the London School of Economics and an MSc from the University Of Clermont Ferrand France.

    “He has attended the Harvard Business School – Advanced Management Programme.

    “An Ivorian national, Kie is fluent in both English and French,” the statement said.

    The News Agency of Nigeria (NAN) reports that Kie will succeed Mr Jibril Aku whose five-year tenure as Managing Director ends on Dec. 31.

  • Ecobank initiates bankruptcy proceedings against Otudeko

    Ecobank initiates bankruptcy proceedings against Otudeko

    •Otudeko: bank’s suit an abuse of court process

    Ecobank Nigeria Limited has initiated bankruptcy proceedings against chairman of Honeywell Group, Oba Otudeko, at the Federal High Court in Lagos.

    But Otudeko has prayed the court to dismiss the suit for being an abuse of court process.

    Ecobank and Honeywell filed separate suits pending before three judges of the court over a debt which the group allegedly owes the bank.

    While the bank has five suits against Honeywell and Otudeko before justice Okon Abang (two) and Mohammed Yunusa (three), the company, which also filed a contempt charge against Ecobank, has one before Justice Mohammed Idris.

    Ecobank, in a petition before Justice Abang, initiated the bankruptcy proceedings over an alleged debt of N4.1billion which it said Honeywell owes it as at August 6.

    The bank said the suit was as a result of loan facilities availed Honeywell Flour Mills Plc, Siloam Global Services Limited and Anchorage Leisures Limited, said to have been personally guaranteed by Otudeko.

    The bank, through its lawyer Mr Kunle Ogunba (SAN), is seeking a receiving order against Otudeko’s estate, funds, investment and shares in Honeywell Group, Honeywell Flour Mills, among other companies, as well as an order declaring him bankrupt.

    Ecobank prayed for an order commanding Otudeko to immediately avail it the companies’ statement of affairs as well as net worth and other credible financial details as required by the Bankruptcy Act.

    It asked for a consequential order empowering the bank to sell Otudeko’s properties wherever they are situated, as well as an order enabling it to utilise the investments or shares in companies in which Otudeko has interest.

    In a motion on notice, Ecobank, among others, is also seeking an interlocutory order appointing a special manager and receiver over Otudeko’s assets.

    But Otudeko, through his lawyer, Chief Wole Olanipekun (SAN), urged the court to dismiss or strike out Ecobank’s petition, or in the alternative, give an order for stay/discontinuance of proceedings in the petition in deference to arbitration.

    He said the originating process in the action was not personally served on him as mandated under the Bankruptcy (Proceedings) Rules.

    Besides, Otudeko said the petition was filed in gross violation of Section 7 (1) (a) of the Bankruptcy Act and Rule 22 (3)(a) of the Bankruptcy (Proceedings) Rules which mandate that at the petitioning creditor shall file an affidavit verifying the petition.

    The Honeywell Group’s chairman said the alleged debt “is neither ascertained nor undisputed.”

    He added that Honeywell Four Mills and its sister companies commenced a suit against the bank before another judge “owing to disagreements between it (Honeywell) and the respondent (Ekobank) as to the complete liquidation of their outstanding obligations to the respondent having regards to the terms and condition of the credit facility.”

    Otudeko said the suit before Justice Abang was an abuse of court process, adding that he was “never served with a notice of demand, which is a condition precedent under the guarantee agreement.”

    Ecobank had, on October 16, filed a motion exparte, praying for an order restraining Siloam Global Services and Otudeko from operating or dealing with funds in any bank or financial institution pending the determination of the motion on notice for the appointment of a provisional liquidator or interim receiver.

    Justice Abang, however, directed Ecobank to put Siloam Global Services and Otudeko on notice.

    It was learnt that the Bankers’ Committee, an umbrella body comprising the Central Bank of Nigeria (CBN), Deposit Money Banks (DMBs) and Discount Houses in Nigeria, waded into the dispute.

    The Bankers’ Committee, it was learnt, ruled that Honeywell Group has fully discharged its obligation with regard to settling the facility granted it by Ecobank. The Committee’s position was said to be contained in a ruling by its Sub-Committee on Ethics and Professionalism which was mandated to investigate the issue.

    However, Ecobank insists that Honeywell Group was indebted to it.

    Justice Abang had ruled there was the need to first determine whether the court has jurisdiction to adjudicate on the matter before proceeding with Ecobank’s application.

    He adjourned till January 13 for the hearing of Siloam Global Services and Otudeko’s application challenging the court’s jurisdiction.

     

  • Ecobank deepens CSR support for indigent students

    Ecobank deepens CSR support for indigent students

    Ecobank Nigeria has awarded scholarships, enrolled the West African Examinations  Council (WAEC) exams for several students of Government Secondary School, Lugbe, Abuja.  The bank also donated various learning materials to the school as part of this year’s Financial Literacy Day.

    Breakdown of the bank’s gesture showed that 100 students benefited from the one year scholarship, 20 students got WAEC enrollment fees, while 1000 exercise books  and  27 white boards were handed  to the school.

    The Financial Literacy Day, an initiative of  the Bankers’ Committee is set aside to focus attention on children and youths in primary and secondary schools in the country  and to empower them by enhancing their financial knowledge and planning skills. It was held in collaboration with Junior Achievement of Nigeria (JAN).

    Speaking at the event, Managing Director, Ecobank Nigeria, Jibril Aku, said the support to the school worth millions of naira was one of the several ways of promoting education and supporting indigent students across the country.

    Represented by Business Executive, Public Sector, Ecobank Nigeria, Shehu Jafiya, the MD enjoined the students and school authourity to put to good use the ‘’kind gestures from the bank.’

    “We believe this gesture will help indigent students who are unable to pay fees or enroll for WAEC. I advise you to face your studies. The importance of education cannot be over emphasised. We are interested to help you succeed in life,” he  said.

    He tutored the students some financial tips, how to manage money, make right decisions and gain financial freedom. Responding, Principal of the school, Mr Gilla Ishaku John,  commended Ecobank for the gesture.

  • Honeywell files contempt charge against Ecobank

    Honeywell Flour Mills Plc has initiated contempt proceedings against Ecobank Nigeria Limited at the Federal High Court in Lagos.

    The company accused the bank of disobeying an earlier directive by Justice Mohammed Idris that all parties should maintain status quo.

    Ecobank had challenged the court’s jurisdiction to hear the suit filed by Honeywell and its sister companies – Anchorage Leisures Limited and Siloam Global Services Limited.

    Dismissing the preliminary objection, Justice Idris held that a cursory glance at the statement of claim shows that the plaintiffs’ claim arose from banking transactions.

    This, he said, places the suit within the court’s jurisdiction as provided in Section 251 (1)(d) of the 1999 Constitution.

    “The plaintiffs’ claim arose from a banker-customer relationship, as such this court has jurisdiction to entertain the matter,” the judge said.

    He held that Ecobank’s preliminary objection lacked merit and awarded N10,000 cost in the plaintiffs’ favour.

    Justice Idris adjourned to Monday for hearing of the contempt proceedings.

    In a related case before Justice Okon Abang of the same court, Ecobank had, on October 16, filed a motion exparte, praying for an orders restraining Siloam Global Services Limited and chairman of Honeywell Group, Dr. Oba Otudeko, from operating or dealing with funds in any bank or financial institution pending the determination of the motion on notice for the appointment of a provisional liquidator or interim receiver.

    The bank also sought an order directing and compelling all the banks and financial institutions in which Siloam Global Services and Otudeko have accounts, to furnish Ecobank with their details.

    It also prayed the court to restraining Siloam Global Services and Otudeko from removing its funds, investments in all banks and financial institutions or alienating/ disposing their fixed and moveable assets within Nigeria.

    Justice Abang, however, did not grant the prayers. Rather, he directed Ecobank to put Siloam Global Services and Otudeko on notice.

    Meanwhile, Otudeko’s lawyer, Chief Wole Olanipekun (SAN), filed a December 7 motion on notice praying the court to strike out the petition and discontinue proceedings in deference to arbitration.

    Yesterday, Olanipekun argued that the court lacks jurisdiction to adjudicate on the matter.

    Ecobank’s counsel, Mr. Kunle Ogunba (SAN), argued that the court ought to determine Ecobank’s exparte application of October 16 first.

    But Olanipekun argued that his clients had given valid reasons to compel the court to determine the challenge to its jurisdiction before determining the bank’s motion exparte.

    Ruling, Justice Abang held there was the need for the court to first determine if it has jurisdiction to adjudicate on the matter before proceeding hearing Ecobank’s application.

    He adjourned till January 13 for the hearing Siloam Global Services and Otudeko’s application challenging the court’s jurisdiction.

     

  • Ecobank boosts e-commerce with MyMall

    Ecobank boosts e-commerce with MyMall

    Ecobank Nigeria has launched an online trading platform, MyMall Nigeria to enhance e-commerce transactions.

    The platform,  inaugurated  by the lender in collaboration with Netplus Advisory services, will enable Small and Medium Enterprises (SME) operators to sell and market their goods and services online.

    It was designed for all categories of products and can be accessed from any part of the world.

    The bank’s Deputy Managing Director, Tony Okpanachi, said the decision to set up MyMall Nigeria was to provide a platform for SMEs’ customers of the bank to tap into the enormous opportunities in e-commerce sphere and take their businesses to a higher level.

    He said the platform will provide a wider access for users to sell their products and offer services to the whole world.

    “Ecobank is bringing this opportunity to our SMEs because we believe that business will significantly move from the brick and mortar to online presence. We are confident that our customers will not be left behind; MyMall, Nigeria will equip you to have an online presence and be relevant in the market place of this age,” he said.

    Okpanachi was optimistic that the bank’s branch network in the country and presence in 36 African countries, would be an added advantage to participants at the mall, stressing that, payment across borders was been worked on.

    The bank’s Business Executive, Business Banking, Kingsley Umadia, said MyMall Nigeria could not have come at a better time, assuring that the online marketing space powered by Ecobank will provide tools for trade for the SMEs to succeed.

    Its Head SME/Value Chain Banking, Sunkanmi Olowo, said 62 SME operators have enlisted onto MyMall. “It is a one stop online mall for buyers and sellers to fulfill their needs for selling and buying online.”

     

     

     

  • Ecobank MD steps down

    Ecobank MD steps down

    The Board of Ecobank Nigeria has announced that its Managing Director, Jibril Aku will step down on December 31 this year. By the bank’s internal policy,  having concluded his five-year tenure as managing director, Aku will step down from his current role.

    He will take on another senior role in the parent company of the bank, Ecobank Transnational Incorporated (ETI) in the first quarter of 2016.

    Aku started his banking career with Citibank (Nigeria International Bank), before joining former Afribank Nigeria Plc as Executive Director, Operations & Technology from 2003 to 2005.