Capital Oil moves against AMCON’s takeover

Nnamdi Felix / Abuja

Buoyed by a variation order it secured at a Federal High Court sitting in Abuja which amended an earlier order granted to the Asset Management Corporation of Nigeria, AMCON, over it’s assets and facilities, Capital Oil and Gas Industries Nigeria Limited and its embattled managing director, Mr. Ifeanyi Ubah, on Friday mounted an intense legal battle to have the court set aside the order granted to Amcon, which empowered it to take control of the companies assets and facilities.

The court had on 13 November granted a temporary forfeiture order against Ubah and his company in favour of AMCON following an exparte application brought before the court by Amcon. The court granted the Corporation control of Uba’s assets and companies, including petroleum products at the company’s tank farms.

He however successfully secured a varriation of the order which allowed him access to 25 per cent of his personal and company’s funds in sixteen accounts domiciled at UBA to enable him maintain himself and pay salaries to his 5000 staff working in his companies.

At Friday’s proceedings, Ubah, who was represented by Chief Wole Olanipekun, a senior advocate of Nigeria, challenged the order made against him by the court on the ground that a recovery action had already been commenced against him and his company, Capital Oil and Gas Industries Nigeria Limited, since on the 9th of November, before Amcon approached the court with an exparte motion on 13th November, for an order to recover its funds. This, according to the embattled oil importer, is contrary to the provisions of section 49 sub-section 3 of the Amcon Act 2010.

He urged the court to discharge the order it granted earlier as it was obtained by AMCON through misrepresentation and non disclosure of material facts and circumstances touching on the status of the facilities immediately preceding the institution of the action.

He further stated that Capital Oil is the second largest importer and supplier of fuel across the country and that a forfeiture will have a negative impact on a large number of the society who depend on its products to run their lives and businesses.

Amcon’s lawyer, Mr. Femi Balogun, however opposed the application, and argued that section 49 sub-section 3 does not preclude AMCON from commencing a recovery action against the Ubah before applying to the court for an order to take possession of his company and properties.

The court presided by Justice Abdul Kafarati subsequently adjourned till 11th December to rule on the application.