Court Garnishees Account Of Lagos Firm Over Loan

A Federal high court sitting in Lagos has ordered that all money standing to the credit of a Lagos businessman, Joseph Anene Okonkwo and his company, Harvard Engineering Construction Company be garnished to satisfy a judgment sum of N326,266,141.34.

The scenario that led to the order of the court started sometime in 1998, when Harvard Engineering Construction Company applied for and was granted a loan of N60 million in two separate facilities by United Bank for Africa, UBA, Plc to enable the company construct a 60-bed hospital at Maraba Ganuku in Nasarawa State of Nigeria.

The first facility of N20 million was granted to the company on 18 June, 2000 by way of advance payment guarantee to enable it meet the requirement to collect 33% payment for the contract by Nasarawa State government.

Another N40 million was granted by way of bankers acceptance facility in July, 2000 domicile with the bank. The first facility was liquidated by a cheque deposit from Nasarawa State government.

However, the bank alleged that despite the domiciliary agreement, the company diverted the proceeds of the contract to avoid paying the second facility. As at 31 May, 2009, the total indebtedness on the second facility is N326,266,141, 34

On the 5 May, 2011, the court delivered judgment in favour of the bank and since then the judgment debtor has refused to pay.

The bank alleged further that though a notice of appeal was filed against the judgment, no further step was taken.

On 19 January, 2012, application for a garnishee order was filed before the court, the court granted the judgment creditor application for garnishee order nisi which was served on the 23 commercial banks and the judgment debtor.

The judgment debtor then filed a motion for stay of execution at high court, Enugu, as they contended that they were not served with the garnishee order nisi within time. They also claimed that the company cannot be said to be owing UBA Plc when the appeal has not been determined.

In his ruling on the application to stop the garnishee order nisi, Justice John Isoho while dismissing the application of the judgment debtors, said the judgment debtors have not shown any sufficient cause to warrant setting aside the order of the garnishee order nisi, adding that they do not appear to have come to equity with clean hands and their equity is defeated.

—Akin Kuponiyi