FirstBank Directors, Otedola Face Arrest over Contempt of Court

Nume Ekeghe

The Directors of FBN Holdings Plc including the Chairman of the parent company of FirstBank Nigeria Limited, Mr. Femi Otedola, presently face arrest by the court for issuing a Mareva injunction against General Hydrocarbon Limited (GHL) despite a court order against the financial institution in a suit with the oil and gas company, without disclosing to the court that the case had already been argued and determined.

It was gathered that GHL already has contempt proceedings against the directors of the financial institution, and court bailiffs and officers of the Nigeria Police Force are on their trail for arrest.

To be arrested include Otedola, the Managing Director/Chief Executive Officer, Mr. Olusegun Alebiosu, and other directors.

A letter dated November 2024, which was addressed to the Governor, Central Bank of Nigeria, Mr. Olayemi Cardoso, showed that GHL had dragged FBN Holdings to court as the holding company was seeking to frustrate and take over the oil and gas company’s bona fide assets.

GHL had signed a memorandum of understanding (MOU) with FBN which the oil and gas company that has an Oil Mining Lease (OML) kept in good standing and for which GHL had zero benefit, ”when FBN deterred, failed and refused to meet its obligations to GHL as at when due, causing huge financial losses, loss of reputation and erosion of goodwill.”

The letter which detailed how the relationship between GHL and FBN commenced, stressed that despite an existing MoU with GHL, “FBN became very tardy in disbursing after GHL failed to pay its ‘consultants’ and did not disburse the $25 million out of the agreed $50 million until three to four months later, in January/February 2024, causing more losses to GHL’s drilling operations as we were liable for over $500,000 per day for the Blackford Dolphin rig which was on standby mode (not operating) during the period of non-payment.”

It added: “More importantly, FBN is putting at risk the repayment of the outstanding exposure to AMCON and the repayment of its new facilities under the MOU and seeking to create Atlantic Energy 2 by trying to orchestrate another non-performing loan situation.

“GHL will resist this with all the powers of the law and will not allow any non-performing loan in its name as we remain committed to meeting all our obligations. In addition, FBN’s non-payment for the TotalEnergies farm-out of the Noble Rig (drill ship), has exposed GHL to over $15M default penalty by 14 November 2024 which FBN is fully aware of.

“These costs are in addition to further millions of dollars in costs and exposures to global service providers like Schlumberger, Baker Hughes, Century FPSO and Marine Platforms, Halliburton, etc.  For over three years, despite demands from GHL and in line with all the signed agreements, FBN has refused, failed and neglected to pay salaries and operating expenses of GHL staff, offices and operations. If they cannot pay for GHL personnel and operations, how do they plan to pay for an additional independent asset manager, when GHL has already appointed ab initio Schlumberger and Baker Hughes as joint technical operators and advisers.

“Whilst our management and seismic teams comprise of the best of Shell, Mobil, Chevron, Total, etc with cognate deep-water experience of the neighbourhood, making GHL the one and only Mr. Governor, we have been left with no choice but to go to court and arbitration to  preserve our fundamental rights and our rights under the agreements in the face of FBN’s attempts to clubber and bully us out of existence. We are seeking to enforce the provision of our MOU which allows us to raise finance independent of FBN when they fail to do so, for which they have failed abysmally. After over three and half years (3.5) years, all we have received from FBN is bad faith.

“We write to you with utmost respect and urge you to use your good offices as regulator of the banking industry and protector of customers who has led the return to orthodoxy to take the following action. Our Prayers: Direct FBN to immediately comply and continue to comply with its obligations to GHL;  to save the project and meet TotalEnergies/Noble Drilling November 14, 2024  final deadline and in line with Clause 5 of the Tripartite Agreement, and FBN’s Mandate Letter to CBN dated March 28 2022, for which GHL has already lost $47million and 217-man days, debit the accounts of First Bank with CBN for the sum of $53million and pay Noble Corporation/TotalEnergies and other service providers as listed for the Oyo 8 Workover.”

THISDAY reported on Thursday, that a group of shareholders at First Bank of Nigeria Holdings Plc., with 10 percent of the company’s shares had formerly requested the company to call an Extra-ordinary General Meeting (EGM) under section 215 (1) of CAMA in which case they have 21 days to call the EGM.

Top on the agenda of the proposed meeting is the removal of Otedola and a Non-executive/Deputy Chief Executive of Geregu Power Plc, Mr. Julius B. Omodayo-Owotuga.

The shareholders alleged that since Otedola’s acquisition of significant amount of shares that led to his emergence as Chairman of FBN Holdings, the financial institution has not known peace.