3 Fayose Brothers Enmesh In Alleged Unpaid N356.6m Debt

3 Fayose brothers and their company, have been dragged before a Lagos Federal High Court, by the Asset Management Corporation of Nigeria (AMCON), over alleged unpaid N356, 668, 241 million.

The three Fayose brothers that were dragged before the court presided over by Justice Daniel Osiagor are: Akinyemi Olugboyega Richard, Akinwunmi and Adeleke, listed as first, second and third respondents, while the company, Equip & Offshore International Limited.

AMCON in its statement of claims attached with a written statement on oath sworn to by its Credit Officer, Blessing Nwankire, and filed before the court by one of its lawyers, Barrister Oluwayomi Akinde, alleged that Equip & Offshore International Limited is a company registered under the Companies and Allied Matters Act with registration number 343274 with its registered address as 1, Ahoada Street, Rumiibekwe, Port Harcourt, Rivers State; was a customer of the defunct New Nigerian Bank Plc (now Unity Bank Plc, the predecessors-in-title to AMCON herein).

The second Defendant Akinyemi Olugboyega Richard Fayose being the Managing Director of the company facilitated the transaction between the defunct New Nigerian Bank and the company

Nwankire averred that sometime in June 2003, the company applied for and was granted a facility (known as invoice discount facility) of N30 million.

The security for the said facility according to AMCON included among other things: All Asset Debenture; Personal Guarantee of the Managing Director/CEO of the company Mr. Akin Fayose.

Upon the Defendants’ fulfillment of the conditions for drawdown, the facility was duly availed to the company for a tenor of 120 days which has since expired.

However, the defendants failed to liquidate the facility comprising of the principal and interest, in spite of repeated demands for the outstanding indebtedness by AMCON the defendants failed to liquidate debt.

Due to the inability of the company to liquidate the credit facility obtained from New Nigerian Bank Plc, the company became indebted to AMCON to the tune of N132,648,210.70 million, the loan became non-performing and the indebtedness was subsequently assigned to AMCON pursuant to its statutory objective of reviving the financial system by efficiently resolving the non-performing loan of the company.

AMCON averred further that it met with the company sometime in November 2014 where the defendants upon accepting their indebtedness offered to pay a paltry sum of N11,000,000.

In furtherance of subsequent negotiation, the defendants issued two First Bank Plc Cheques dated December 16, 2015 in the sum of N10 million and N3.2 million, respectively. The Cheques were returned without any value to ÀMCON for lack of funds in the said account.

 Similarly, AMCON engaged a Solicitor to demand the outstanding indebtedness of the Defendants but to no avail.

The claimant avers that upon purchasing and acquiring the said non-performing loans of the company, Equip & Offshore International Limited, from Unity Bank Plc, and after several demands for the repayment of the facility, it appointed Bamigbola Consulting as its Asset Management Partner (AMP) to recover the said non-performing outstanding loans from the Defendants.

According to the claimant, despite the letter of demand and the subsequent efforts by the AMP to recover the indebtedness and get the defendants to pay, the defendants have failed, refused, or neglected to pay.

In furtherance of recovering the indebtedness of the defendants, AMCON discovered that some of the defendants have funds in certain banks, especially the bank accounts linked to Akinyemi Olugboyega Richard Fayose

The lawyers stated: “It has then become imperative, due to the defendants’ unwilling attitude to liquidate the outstanding sum of N356,668,241.60 million with interest at the rate of 20.5 percent per annum from August 1, 2022, to bring the extant action.”

Consequently, they applied to the Court vide an application “Without Notice” dated the 4th day of August 2022 seeking an Order of the Court to freeze the accounts of the defendants to the tune of N356,668,241.60 million with interest at the rate of 20.5 percent per annum from August 1, 2022 among other reliefs. The said application was granted on October 12, 2022.

The lawyers stated that it will not be in the interest of justice to allow the defendants to continue to enjoy the wealth amassed from using the funds granted as a loan to the company by the eligible financial institution without intent to repay the said facility to AMCON.

“All efforts made by its external solicitors and partners to recover the said debt through dialogue were to no avail as the debtors refused, neglected, and in fact decided not to liquidate the amount owed and due to the Claimant.

“The defendants are not entitled to any relief, set-off or any sum at all against AMCON and the AMCON pleads Section 43(1) (a) of the Asset Management Corporation of Nigeria Act 2010 (as amended) and further pleads that even if the defendants will or have any cause the defendants will not suffer any damages.

“The claimant demands a declaration that the Defendants are indebted to the claimant in the sum of N356, 668, 241. 60 million with interest at the rate of 20.5 percent per annum from August 1, 2022; an order for the immediate payment of the sum of N356, 668,241.60 million, to the claimant; an order for the payment of interest on the sum of N356,668,241.60 million, at the rate of 20.5 percent per annum from August 1, 2022, till final judgment and post-judgment interest at the rate of 10 percent per annum until final liquidation of the entire final judgment sum with the accrued interest, and cost of the legal action assessed at N5 million,” the lawyers stated.

Meanwhile, the presiding Judge, Daniel Osiagor, has adjourned the matter till February 15, 2023, for a hearing.

Source -: Newsmakers