First Bank Shares: Oba Otudeko Responds To Ecobank
Wole Olanipekun & Co, the legal representatives of Dr. Oba Otudeko, Chairman of Honeywell Group Limited, have issued a response to the letter from Ecobank Nigeria Limited regarding the recognition of shares transferred to Barbican Capital Limited.
The law firm, on behalf of Dr. Oba Otudeko, urged FBN Holdings PLC to disregard the requests made in Ecobank’s letter.
The response emphasized the absence of a specific court order supporting Ecobank’s claims and highlighted the statutory duties of a Chief Executive Officer (CEO) of a financial institution.
In the letter from Otudeko’s legal representatives, it is also stated that the debt amount of N13.5 billion mentioned in Ecobank’s letter is not supported by any court decision, including the ruling from the Supreme Court.
The sum of N13,507,052,417.99 stated in Ecobank’s letter is/was not contained in the Supreme Court decision or any extant Court decision in Nigeria or elsewhere.
No order of court has also awarded same or any judgment sum (as debt owed) at all in favour of Ecobank as a liability from our clients or any of the Honeywell companies.
Accordingly, we urge you to ignore and decline all the requests contained in the said letter.
The response clarifies that no court has awarded such a judgment sum in favour of Ecobank against Dr. Otudeko or any of the Honeywell companies.
The letter asserts that the responsibilities of a CEO of a financial institution are limited to statutory duties and do not extend to intervening in transactions between third parties on the Nigerian Exchange.
“As you are aware, the duties of the Chief Executive Officer of a financial institution are statutory and they do not extend to the various actions Ecobank’s letter requested you to perform, including but not limited to intervention in transactions between third parties on the Nigerian Exchange.”
The response raises concerns about the confidentiality obligations incumbent upon the CEO and institution, asserting that Ecobank’s requests for disclosures are inconsistent with these obligations.
It is emphasized that there is no express court order mandating such disclosures.
Consequently, Otudeko’s legal representatives urge FBN Holdings to dismiss and reject the requests made in Ecobank’s letter, highlighting the lack of a court order supporting the claims.
The response expresses confidence in the FBN Holdings CEO’s understanding of the prevailing circumstances and their adherence to legitimate positions.
The ongoing exchange between Ecobank and Otudeko’s legal representatives regarding the recognition of shares held by Barbican Capital Limited continues to draw attention.
Market observers are closely monitoring the developments in this dispute.
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It is shocking and unacceptable that Mr. Oba Otudeko is owing Ecobank billions of naira while trying to take over First Bank. Mr. Otudeko’s behaviour is so unethical that for more than a decade he faced Ecobank in several courts and lost. Ecobank loaned him billions and when it was time to pay up, he refused to pay, and the bank took him to court. The case has gone from the lowest court in the land to the highest court, and Otudeko still lost, but he has taken several steps to dodge payment and his actions has shown that he is recalcitrant and determined not to repay what he owed Ecobank.
The regulatory bodies including the Central Bank of Nigeria and the Security Exchange Commission (SEC) should sanction Oba Otudeko and compel him to pay Ecobank. His new investment in First Bank – to enable him sit on the board of First Bank – should be prevented by the CBN and SEC should act expeditiously to put a hold on all the shares of Honeywell Group Limited, Barbican Capital Limited and other businesses where Otudeko is using proxies including his children to maintain ownership and control. Otudeko engaged in several non Arm’s Length Transactions in order to transfer shares and ownership of some shares and businesses to his children.
I am not sure if there is a Non Arm’s Length Transaction law in Nigeria, but I want to believe that there should be a way that SEC and CBN can work with Ecobank and First Bank to reign in the unethical and suspicious actions of Oba Otudeko. SEC must do this to reassure investors that its rules and regulations will not be trampled upon by criminals and dubious businessmen.