Alleged N13.5bn Debt: You Lied, There Was No Supreme Court Judgement in Your Favour, Honeywell Group Replies Ecobank

The Honeywell Group had responded to an allegation by Ecobank Nigeria Limited that it was indebted to the financial institution to the tune of N13.507 billion following a Supreme Court judgement, describing the allegation as completely false.

Honeywell, in a letter by its lawyers, Wole Olanipekun & Co, that was signed by Bode Olanipekun on behalf of the law firm, dated July 10, 2023, stressed that neither Dr. Oba Otudeko, nor the Honeywell Group was a party to the Supreme Court decision/proceedings.

It maintained that the  Supreme Court did not at any time grant or award any claim in favour of Ecobank.

A copy of which was addressed to the Managing Director, FBN Holdings on Wednesday, also urged the parent company of FirstBank to ignore and decline the request by Ecobank that the holdco should reject the recent strategic investment in FBN Holdings by way of share purchase.

The Honeywell Group in its latest strategic investment in FBN Holdings through its affiliate company, Barbican Capital Limited, had last week purchased 4,770,269,843 FBN Holdings shares in a cross deal worth N87.8 billion. The company had also said its investment in the holdco was to create value for shareholders.

Barbican is owned by Honeywell Group and Otudeko.

But piqued by the development, Ecobank Nigeria Limited through its lawyers, ‘Kunle Ogunba & Associate had written to FBN Holdings, and had advised it against approving or accepting the investment due to outstanding “humongous indebtedness” by the company and its founder, Dr. Oba Otudeko.

Specifically, Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated (ETI), alleged  that the Honeywell Group and Otudeko were indebted to the bank to the tune of N13,507,052,417.99. It had further alleged that with the investment in FBN Holdings, Honeywell Group and Otudeko were diverting funds that ought to be for the repayment of the loan.

But in response to Ecobank, the Honeywell Group in the letter titled: “Re: Shares Belonging to Honeywell Group Limited, Honeywell Flour Mills Plc, Anchorage Limited, Siloam Global Services Limited and Dr. Oba Otudeko in FBN Holdings Plc or in Any Other Entity,” described the claims by Ecobank as false.

It stated: “We (Wole Olanipekun) write at the instance of Dr. Oba Otudeko and Honeywell Group (our clients,), whose attention has been drawn to a letter dated 7th  July, 2023 (written on the instruction of Ecobank Nig. Ltd.) with the above subject. “Even though the author(s) of the letter refused to deliver copies to our clients, and/or the other entities referred to in the letter (which has been widely circulated in the media space), it is our instruction to respond.

“Whereas, the letter falsely alleges that there was a decision of the Supreme Court in SC/CV/210/2021 made on 27th January, 2023, “affirming the indebtedness” of our clients and that the decision also “commanded” our above stated clients to perform certain acts, neither Dr. Oba Otudeko, nor Honeywell Group Plc was a party to the Supreme Court decision/proceedings and no order was made against them.

“Thus, the further statement in the letter that “…..the actions being taken by Dr. Oba Otudeko is (sic) …. in order to frustrate the enforcement of the judgement of the Supreme Court against him” is without any factual or inferential basis arising from the express terms/contents of the judgement.”

Honeywell noted that Ecobank was the defendant in the claim at the Federal High Court which culminated in the decision of the Supreme Court in SC/CV/210/2021. “The bank had no counterclaim right from the Federal High Court through to the Supreme Court and, naturally, the Supreme Court could not have, and, indeed did not grant or award any claim in favour of the bank.

“The sum of N13,507,052,417.99 (thirteen billion, five hundred and seven million, fifty two thousand, four hundred and seventeen naira, ninety nine kobo) stated in Ecobank’s letter is/was not contained in the Supreme Court decision or any extant Court decision in Nigeria or elsewhere.

“No order of court has also awarded the same or any judgement sum (as debt owed) at all in favour of Ecobank as a liability from our clients or any of the Honeywell companies.”

It therefore urged the Managing Director of FBN Holdings to, “ignore and decline all the requests contained in the said letter.” “As you are aware, the duties of the Chief Executive Officer of a financial institution are statutory and they do not extend to the various actions Ecobank’s letter requested you to perform, including but not limited to intervention in transactions between third parties on the Nigerian Exchange.

“The level of seriousness to be ascribed to the letter can easily be appreciated from its title which has referred to “Shares … in FBN Holdings Plc or in any other entity”  as if the responsibilities of your office extend to the outfit(s) vaguely/nebulously referred to as “any other entity.

” We are convinced that you also appreciate the confidentiality obligations incumbent on your person, office and institution which are inconsistent with the requests in Ecobank’s letter; especially when there is no express order of Court mandating such disclosures.

“In the optimism that you will be well guided in the prevailing circumstances, particularly by the legitimate positions communicated herein.”

Obinna Chima

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