Leading bank ordered to pay N4.5 billion to company

folarin okunola

December 24, 2015 5:53 PM

The court also ordered that the 100 million units of Starcomms shares sold to the company through private placement in 2008 were improper, invalid, null and void and as such to be set aside.

Sola David-Borha, MD/CEO Stanbic IBTC bank

According to various media reports, a Federal High Court sitting in Lagos has ordered Stanbic IBTC Bank Plc to pay the sum of N4.5 billion to a former Group Managing Director of Afribank Nigeria Plc, Patrick Olayele Akinkuotu, and his company Longterm Global Capital Limited, for breach of contract.

According to Nigeria CommunicationsWeek report, John Tsoho, the presiding judge over the case, also ordered Stanbic IBTC and the second defendant in the case, Starcomms Plc, to pay 10 percent interest on the judgement sum per annum until the date of liquidation.

READ: Stanbic IBTC to publish list of loan defaulters

In addition, the court also ordered that the 100 million units of Starcomms shares sold to the company through private placement in 2008 were improper, invalid, null and void and as such to be set aside.

The judgement of the court came after Akinkuotu and his company filed a suit against Stanbic IBTC Bank Plc and Starcomms before the court in 2012, alleging that Stanbic IBTC deliberately misled them into buying shares of Starcomms via private placement by misrepresenting facts and issuing false documents to that effect.

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