Ex-Oceanic Bank Staff Sue Ecobank For N3.6b

Nine former staff of Oceanic Bank International Plc, on behalf of  themselves and other staff of the bank before and after the merger of the bank with Ecobank Nigeria Plc, have slammed N3,646,470,383.62 suit on Ecobank Nigeria Plc over an alleged breach of contract.

In the suit filed before the National Industrial Court of Nigeria, Lagos, southwest Nigeria, on behalf of the claimants by a Lagos lawyer, Barrister Nwabu Okoye, the nine claimants, Uzoma Ihediohanma, Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Segun Alasan, Adetayo Fumilugba and Lolade Olaribigbe, who are suing in representative capacity alleged that in the scheme of merger of the two banks sanctioned by a federal high court, all assets, liabilities, undertaking, including real property right and contracts to which Oceanic Bank is a party had been transferred to Ecobank Nigeria Plc without further act or deed as provided in the scheme of the merger.

It was further stated that where any employee of Oceanic Bank does not wish to continue in the employment of the enlarged Ecobank Nigeria after the merger, such employee will be entitled to obtain the full terminal benefits based on his/her existing contract service; therefore the enlarged Ecobank became bond and liable to honour the provisions of the contract.

The contract of such employment shall include the following calculation of redundancy or severance payment, payment of gratuity to employees, entitlement of contributing staff to be paid of their entire contribution with accrued interest to and from the Oceanic Staff Saving Trust Fund.

On February 13, 2012, Ecobank advised 788 employees of Oceanic Bank whose employment had been transferred to the bank as it has been determined as from 15 February, 2012 to go.

The claimants are among the 788 staff whose employment were terminated and another 1,049 staff who were also affected.

The claimants alleged that in the calculation and payment of final entitlement, Ecobank grossly and flagrantly violated their contract of employment by failing and refusing to pay their gratuities as they were short paid in the sum of N159,710,523.51, unpaid total amount of staff savings investment trust fund contribution stood at N926,901,065.60  while severance and redundancy entitlement outstanding is in the sum of N59,858,804.51.

Despite letters of demand written on behalf of the claimants and other affected staff of Oceanic Bank by the law firm of Falana and Falana, Ecobank refused and failed to pay the entitlement.

Consequently, the claimants’ claim against the defendants are as follows: N926,901,065.060 being total of staff Saving Investment Trust Fund contribution of 1,833 of Oceanic Bank staff, N159,701,523.51 being total gratuity and N59,858,804.51 being short payment of severance and redundancy payment.