* As Court Reaffirms Freezing of SPDC Accounts in 20 Banks
By Chisaa Okoye
Two Leading financial institutions and their top executives may be committed to prison for disobeying the Mareva order of a Federal High Court, Lagos, directing them to freeze the accounts of Shell Petroleum Development Company (SPDC) domiciled in the banks.
The two banks and their officials are United Bank For Africa (UBA) Plc, its Company Secretary, Bill Andrew Odum, and Chief Financial Officer, Ebenezer Kolawole and Citi Bank Ltd, its Company Secretary Sola Fagbure and Chief Financial Officer, Sharaf Mohammed.
Justice Oluremi Oguntoyinbo had on January 25, 2021, granted an interim Mareva injunction directing 20 commercial banks to freeze the accounts of SPDC Ltd.
The order was sequel to an ex parte application by AITEO Eastern E & P Company Ltd, seeking to recover the cash value of the more than 16 million barrels of crude oil allegedly diverted by the SPDC from its (Aiteo) oil platform.
Specifically, the Judge had directed the 20 banks to ring-fence any cash, bonds, deposits, all forms of negotiable instruments to the value of $2.7 billion and pay all standing credits to the Shell companies up to the value into an interest yielding account in the name of the Chief Registrar of the court.
At the resumption of the matter, Kemi Pinheiro SAN, Aiteo’s counsel, had initiated the contempt proceedings he filed against the two banks and their officials.
He told the judge that the contemnors willfully disobeyed the interim order of January 25, 2021, directing them to block SPDC’s accounts, for interfering, obstructing and/or frustrating compliance with the interim orders.
Pinheiro also prayed the court for an order directing the Inspector General of Police to immediately arrest, detain, investigate and prosecute the respondents for interfering with the course of administration of justice.
The counsel stated that out of 20 nominal respondent banks in the matter, the two banks failed to comply with the order of the court particularly as it pertains to the filing of an affidavit to disclose the amount in the credit of SPDC in their respective banks.
Opposing the submissions of Aiteo’s counsel, the banks counsel, Olawale Akoni SAN, asked the court to hear his application to discharge the Mareva Order first.
Similarly, SPDC’s lawyer, Adewale Atake SAN, opposed Aiteo’s application to hear the committal proceedings first, and reminded the court of a pending application to stay proceedings in the matter and refer the case to Arbitration as well as a motion for the discharge of the order freezing his SPDC’s accounts. He also urged the court to hear his application first.
Atake, also made an oral application, urging the court to vary the Mareva order on the ground that it had imposed “hardship” on his client (SPDC) and even the Federal Government of Nigeria (FGN).
But Pinheiro opposed both applications, pointing out that “a party who is in disobedience of court order cannot be seeking relief from the same court and a party who has filed a motion challenging the jurisdiction of the court cannot equally be seeking for favour from the same court,”.
Justice Oguntoyinbo refused the application and maintained that the Mareva order subsists. The judge also noted that the FGN is not a party in the suit.
She however reserved ruling on which application to be heard first till next Tuesday, March 2.