A Federal High Court in Abuja has ordered that processes be served on the liquidator of the Nigerian Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (Mtel) on suits seeking to compel him to account for their proceeds.
The documents are related to the 13 suits filed by the defunct NITEL and Mtel creditors, who claimed that since the completion of the sale of the firms in 2015, the liquidator, Otunba Olutola Sembore, has failed to settle the firms’indebtedness to them.
On November 23, this year, Justice Nnamdi Dimgba gave approval, after hearing the plaintiffs’ lawyer, Anthony Oguajamma.
Oguajamma, in a motion ex-parte, sought leave to serve the processes on Sembore in his last known Abuja address, because the court’s bailiff was having difficulty in doing so.
He stated that Sembore, since his appointment as the liquidator of NITEL and Mtel, had his office at Plot 72 Kur Mohammed Way/Ahmadu Bello Way, Central Business District, Abuja, but later relocated to No 1 Massenya Street, off Cotonou Crescent, Wuse Zone 6, Abuja, which is now his last known address.
Alternatively, Oguajamma sought to serve Sembore by pasting the originating processes on the court’s notice board, because, since the liquidator was appointed by the court, he is,therefore, an officer of the court, who could be notified of the suits through the court’s notice board.
In his ruling, Justice Dimgba ordered substituted service of all processes in the suits on the defendant (Sembore) “by pasting same at a conspicuous place, such as the entrance gate, at No 1 Massenya Street, Off Cotonou Crescent, Wuse Zone 6, Abuja, FCT, being the last known address of the defendant.”
The judge adjourned to January 18, next year for the hearing of the suits. The defendant is expected to have filed his response to the suits before then.
The suits include: FHC/ABJ/CS/292/18 by Stetsonex International Ltd; FHC/ABJ/CS/439/18 by Mr. Sunday Ndubueze; FHC/ABJ/CS/441/18 by Negro Security Guards Ltd; FHC/ABJ/CS/293/18 by Garkuwa Investment Ltd; FHC/ABJ/CS/296/18 by Telephone Cables Nig Ltd and FHC/ABJ/CS/297/18 by Trumps Nig Ltd.
Others are: FHC/ABJ/CS/291/18 by Asher Hospital & Maternity Ltd; FHC/ABJ/CS/295/18 by Babareg Enterprises Nig Ltd; FHC/ABJ/CS/294/18 by Gen Telecom Plc; FHC/ABJ/CS/302/18 by DMI Technologies Ltd; FHC/ABJ/CS/306/18 by Fitracon Nig Ltd and FHC/ABJ/CS/318/18 by Sovereign Guards Ltd.
According to court documents, Otunba Sembore was appointed as liquidator of the core assets of Nitel/M-Tel in 2014 by the Goodluck Jonathan administration.
By his mandate, the liquidator was to apply funds realised from the sale of the core assets of NITEL and Mtel to paying liabilities to contractors to the firms.
It was found from the records provided by the liquidator that, in May 2015, each of the creditors was paid a first instalment of 15 percent of what was owed them. This was followed by another instalment of 12 percent in November 2015.
In July 2016, they were paid another tranche of 1.5 percent of what was owed each of the creditors, bringing to a total of 28.5 percent of what the liquidator has paid the creditors.
The creditors, according to court documents, are still being owed 71.5 per cent of the total indebtedness, over three years after the sale of both NITEL and Mtel was completed under a process said to have been supervised by the National Council on Privatisation (NCP) headed by the Vice President.
In one of the suits filed for the creditors by their lawyer, Ola Olanipekun (SAN), they want an order “removing and/or discharging Otunba Olutola Sembore from further representation/performance of the functions of a liquidator and/or in any other way or manner continuing to act as the liquidator of Nitel/M-Tel.”
They also want an order of injunction compelling the liquidator to immediately render account of monies accruing to the defunct Nitel/M-Tel, received and/or expended in liquidation of the defunct companies.
The plaintiffs equally want the court to compel the liquidator to disclose statement of bank accounts of the Nitel/M-Tel from the date of his assumption of duties till date of judgment.
They are also praying the court to appoint, in Sembore’s place, Abidemi Olusola Ajao as liquidator of Nitel/M-Tel, with all powers of a liquidator duly appointed in accordance with the provisions of the Companies and Allied Matters Act (CAMA).
The plaintiffs want the court to compel the liquidator to disclose details of all funds/assets of Nitel/M-tel in custody of any person(s), including Federal and state government corporations, commissions, Ministries, Departments and agencies accruing to the defunct companies, which were either remitted to him upon his assumption of duty or yet to be remitted.
They are also seeking disclosure by the liquidator, his agents, privies, assigns, representatives or whatsoever name called and by whatsoever nomenclature described, of funds accruing to the defunct Nitel/M-Tel or to the defendant in his capacity as the liquidator of the defunct companies since his assumption of duty/office.
It is part of the plaintiffs’contention that the liquidator, by the manner he has handled his brief, he is in violation of sections 422(5), 482 and 483 of the Companies and Allied Matters Act.
They also claimed that, by his conduct, the liquidator violated the provisions of sections 430, 447(1), 470(1) and 483 of CAMA.
The plaintiffs are alleging that Sembore is in violation sections 425(1)((d)(e), (2)(h)&(3) and 483(1)(2)of the same Act.
