N1 Billion Suit Slammed On Finbank

Two limited liability companies, Toojin Engineering Nigeria Limited and Bo Polystores Nigeria Limited, customers of Finbank Plc, have renewed their N1 billion suit against the bank.

In a proposed amended statement of claim filed before a Federal High Court in Lagos South West Nigeria, by a Lagos lawyer, Sylvester Okojie,  it was alleged that Toojin Engineering Nigeria Limited, operating and maintaining current account number 211430017101 with the Abuja branch of Finbank, sometimes in 2004, won a contract from the Nasarawa State Government to construct a 20-megawatt hydro electricity generating project.

The company then applied for the opening of and did operate the said current account based on funds earned from the execution of the project with short term funding gaps from the bank, which resulted in a working capital facility of N150 million to the company by Finbank. The facility has since been totally liquidated.

The plaintiffs averred further that when the hydro electricity project entered its most crucial stage sometimes in 2006, the company approached the bank for import finance facility of N200 million to enable it import the required turbines, generators and other accessories of the power house. The loan was granted under attached terms and conditions.

However, the plaintiffs alleged that when the imported equipment arrived Lagos port, they demanded for the release of the shipping documents and some money to enable them clear the goods for onward transmission to the project site in Nasarawa State, but in spite of series of demands, reminders and endless meetings with the bank, it failed and refused to oblige them with neither the shipping documents nor the money for import duties and the goods therefore continued to lie fallow at the port till date.

Consequently, the hydro electricity project was effectively stalled, while the sum due and payable to the plaintiffs was not paid by the Nasarawa State Government. In addition, the credibility and prospects for further business relations with that government and indeed any other government or its agencies were severely eroded.

The plaintiffs also averred that the bank published to the whole world via the internet window and various placements on diverse websites in the internet and daily newspapers that the company was indebted to it in two separate accounts, N858,265,908.06 and N264,523,867.83, classifying the company as one of the major bank debtors.

The company averred that it was astonished not only at the spurious figure of N1,122,789,755.89, but the existence of an unknown account in its name described as Account 2 with an existing debit balance of N264 million, which was then protested after taking a cursory examination of the statement of account it obtained from the bank and discovered that despite the continued and unreasonable holding on to the shipping documents, it was at the same time debiting the company’s account with accruing interest and incidental charges.

The bank is now threatening and indeed taking steps to appoint a receiver/manager for the assets of the two companies.

In view of all these, the companies, while claiming N1 billion as general damages for libel committed against Toojin Engineering Limited by Finbank Plc, they are also urging the court to declare that it has wholly discharged from the import finance facility contract of N200 million with the bank.