Ecobank’s Suit To Stop N800 Million Amnesty Fund Refund Suffers Setback

A Federal High Court in Abuja has refused to grant an application by ECOBANK Nigeria Limited to restrain the Federal Government from forcing it to refund N800 million arising from loss suffered due to the multiple payments made to beneficiaries of the Amnesty Programme.

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In a ruling on Wednesday, Justice Inyang Ekwo ordered the counsel to the bank, Isaac Oguche, to put the respondents on notice within seven days of the order.

Justice Ekwo also directed Oguche to serve on all the respondents in the suit the processes filed and adjourned the matter until May 31 for the bank to show cause.

Recall that the Federal Government had established a Niger Delta Amnesty Programme for the disarmament, demobilisation and rehabilitation or reintegration of the militants and development in the oil-producing region.

The key component of the programme was the payment of monthly stipends to qualified beneficiaries through their accounts maintained with various banks in Nigeria.

ECOBANK had, in an ex-parte motion marked: FHC/ABJ/CS/469/2023, sued the Attorney-General of the Federation, the National Security Adviser and the Federal Government through the Niger Delta Amnesty Programme as 1st to 3rd respondents respectively.

In the motion dated April 5, the bank’s lawyer, Chief Anthony Idigbe (SAN) sought an order of interim injunction restraining the respondents or cohorts from arresting its directors, staff or agents or taking steps to disrupt its business without following due process of law pending the hearing and determination of originating motion.

It also sought an order of interim injunction restraining the respondents either by themselves or agents from taking further steps “to further harass the applicant, directors and staff.

In the affidavit in support of the motion deposed to by the Regional Operations Head of the bank in FCT, Oladipupo Raji, the bank averred that since the inception of the programme to January 2023, there had been no allegation against ECOBANK for fraud in relation to monies paid to its customers by the Niger Delta Amnesty Programme.

Idigbe said on Jan. 19, commercial banks, including ECOBANK, were summoned to a meeting by the NSA with the President, retired Maj-Gen. Babagana Monguno), in respect of the Amnesty Programme.

He said: “That the NSA, at the meeting which I attended informed the bank’s representatives that some of the beneficiaries of the Amnesty Scheme have been receiving double payments from the Federal Government of Nigeria by opening multiple accounts in several banks and that the 3rd respondent has also been paying funds to unknown individuals.

“That the NSA thereafter sought the support of the banks in tackling the challenges in sanitising the system and ensuring the leakages are blocked.”

He said to their surprise, the Permanent Secretary, Mr Aliyu Mohammed, informed all the banks that the Federal Government had purportedly lost the sum of N13 billion through the leakages and thereafter stated emphatically that the sum of N849,408,000 must be refunded by ECOBANK within 2 weeks.

“That the banks, shocked by the demand and the threat of arrest, requested for time for them to audit their books to verify the claims for multiple payments in line with the payment instructions given by the 3rd respondent,” he said.

Raji said that ECOBANK was not involved in the processing of payments, approval of payments or verification of the list of the beneficiaries of the scheme.

The worker, who refuted the allegations in the Niger Delta Amnesty Programme lawyers’ letter dated Feb. 23, denied liability for the payment of the sum of N319,830,000 million.

He insisted that the bank did not engage in any fraudulent activities in relation to the funds paid to its customers either before or after the opening of the account.

According to him, the bank is not appointed as a financial adviser on the amnesty payment programme and is not given any responsibility for verifying payments to the beneficiaries of the programme under any contract.

He added that the applicant is not aware of the criteria used in picking/selecting the beneficiaries of the Amnesty stipends.

Raji, who urged the court to grant their reliefs, said the motion was filed in the interest of justice.