A multinational Oil company, Petrocam Trading Nigeria
Limited, has slammed N6.75 suit on Union bank of Nigeria Plc over an alleged
negligence and breach of contract.
In a statement of
claim filed before a Lagos High Court on behalf of Petrocam company by a
Lagos lawyer, Gboyega Oyewole SAN, it was alleged that the company and Union
bank in the course of ordinary business, entered into joint venture agreement
with marketers to jointly collaborate in opening letter of credit confirmation
lines for the importation of petroleum products from foreign sellers of the
product.
The joint venture accounts are domicile with the bank.
In executing the letter of credit confirmation lines, the
bank is expected to use the Naira sum in the account in bidding and purchasing
foreign exchange (FOREX ) for liquidation of mature letters of credit.
Sometimes in 2014, the company was said to have approached
the bank for an import finance facility line of $45 million in its favour to
finance the importation of petroleum products, upon securing the finance
facility, various letters of credit were raised to utilize the dollar facility.
The import finance facility was later increased to $100 million.
The letters of credit were to be paid back with sales
proceeds and subsidy reimbursement. Bank Guarantee were provided as security
for the sale proceeds.
However, the bank was alleged to have failed, neglected and
refused to perform its duty as an agent between the company and Central Bank of
Nigeria and as a bank to secure foreign exchange for the liquidation of matured
letters of credit as at when due.
The bank, rather than make bids on behalf of the company
within the period of 2014/2015 in the first quarter of the transaction when the
letter of instructions were given by the company, was only able to purchase
forex to liquidate these mature letters of credits within the period of
2016/2017,whereas 90% of the transactions were done in 2014/2015 when dollar
was at the rate of N155-N160 per Dollar.
However, the company failed to bid on these transactions
until when foreign exchange has moved to N288-N320 per dollar.
The company averred further that over N4 billion was
domicile with the bank in the joint venture account as at February, 2015 and
over N2.4 billion in Petrocam current account for purchase of foreign exchange
to liquidate these matured letters of credit, but that the bank was only able
to secure bid for $21,625,935.30 within the period of 90 days when they were
expected to liquidate the full value of $76,369,569.30 which exposed the
company to heavy losses as a result of the failure to bid as at when due by the
bank within the transaction cycle.
By reason of the several acts of gross negligence and breach
of the banker-customer relationship subsisting between the company and the
bank, the company joint venture account maintained with the bank for the
funding of trade facility has been allegedly unlawfully debited with a total
sum in excess of N6,704,918,533.71.
The company also averred that the various exorbitant charges
made on the company’s account by the bank was revealed by the report of the
independent consultant engaged by the company.
Wherefore the company claims against the defendant are as
follows:
*An order directing Union bank to credit or reverse the
wrongful debit on the company’s current account maintained with the bank for
the funding of the letter of credit totaling the sum of N6,704,918,533.71
arising from the bank’s breach of its duty to the company, interest on the said
sum of N6,704,918,533.71 at the rate of 22%per annum being the prevailing
interest rate from commencement of this suit to the date of judgement, and
thereafter 7% interest from the date judgement is given till the final
liquidation of the judgment sum.
*N50 million as general damages in favour of the Petrocam
company.
Union bank did not file any defence to this suit, rather it
has filed another suit against Petrocam Trading Company Limited and its
Managing Director, Mr Patrick Ilo before a Federal High Court in Lagos claiming
the sum of N10,062,643,928.72 and $5,247,693.82 plus interest at the rate of
27% per annum and N20 million as cost of instituting the said legal action
against Petrocam Trading company and its Managing Director.
Meanwhile, Petrocam company and its Managing Director has
filed preliminary objection against the suit, drawing the attention of the
court to their own pending suit against the bank at a Lagos High Court.
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