Stock Broking Firm Renews Legal Battle With Oyo State

In a bid to recover the sum of N97,052,718.64, from the Oyo State government, being money for services rendered, a stockbroking firm Thomas Kingsley Securities Limited, has renewed its legal battle in a breach of contract suit it filed against the state.

In an amended statement of claim filed before a Federal High Court in Lagos, southwest Nigeria, against the Oyo State government, Commissioner for Commerce, Industry and Tourism of the state and Attorney General of the State, the company alleged that by an agreement dated 4 September, 1998, on behalf of the Oyo State government, entered into a contract with it to manage all the investment portifolio of the state. Under the agreement, the company was required to purchase treasury bills, treasury certificates, development stocks and other instruments issued by the Federal Government, rectify its complaints with companies and call its outstanding benefits, consolidate its shares and revalidate its dividends and monitor its stocks.

Thomas Kingsley firm averred that its remunerations under the agreement were as follows 2.75 per cent of value of the stocks in the portfolio if the return on the investment is 20 per cent and more, 2.25 per cent of the market value of the total stocks in the portfolio if the return on investment is less than 20 per cent.

The plaintiff contended that it performed its functions under the agreement, but contrary to the agreement between the parties, the Oyo State government purchased a number of stocks worth millions of naira through other stock broking firms and thereby caused it colossal losses.

The plaintiff also averred that the state government unilaterally disengaged the firm from the contract and refused to pay the plaintiff’s fees earned during the three years that the contract subsisted amounting to the sum of N97,052,718.64.

Consequently, the plaintiff claims against the defendants jointly and in several areas as follows: the sum of N97,052,718.64 being the amount due to the plaintiff for services rendered to the state general damages for breach of contract.