From Uche Nnorom, Makurdi
The Federal High Court in Makurdi, has adjourned to June 19th, the matter between the Benue Investment Property Company, Ltd, BIPC and the Nigeria Deposit Insurance Company, NDIC over unauthorized sale of its shares.
The suit, it was learnt, is one of several litigations arising from transactions between the defunct AllStates Trust Bank Plc and Benue Investment and Property Company Limited, BIPC which was a customer of the Makurdi branch of the defunct bank.
According to a document obtained by NDIC, the defunct bank granted BIPC various facilities, including an advance of loan of N13,000,000.00, a term loan of N550,000,000.00, an APG facility of N397,986,506.40 and an additional advance of N15,000,000.00.
The document also stated that as at 16th January 2006, when the bank’s license was revoked, BIPC’s indebtedness stood at N230,599,919.93 (Two Hundred and Thirty Million, Five Hundred and Ninety-Nine Thousand, Nine Hundred and Nineteen Naira, Ninety-Three Kobo).
Hence, to secure these facilities, BIPC deposited original share certificates in several blue-chip companies as collateral, including, Julius Berger Plc., Benue Cement Company Plc., UAC Nigeria Plc., First Bank of Nigeria Plc., NAL Bank Plc., Union Bank of Nigeria Plc., National Oil and Chemical Nigeria Plc. AshakaCem Plc. Conoil Plc. Afribank Nigeria Plc.
The defunct bank also, forwarded some designated share certificates to its stockbrokers, Messrs Rolex Securities Ltd. (later renamed GMT Securities & Asset Management Limited), for verification and perfection of the bank’s interest.
However, instead of complying with the bank’s instructions, the stockbrokers, on 11th March 2005, disposed of the shares through another company, Solid Rock Investment and Securities Ltd.
They subsequently remitted a Zenith Bank Plc. Cheque for N4,000,000.00 (Four Million Naira) to the defunct bank, purportedly as proceeds from the sale. GMT Securities Ltd. Conducted further unauthorized sales in 2010 and 2013.
