Monday, December 22, 2014

Alleged Libel: Ex-Minister Sues Bank For N100b



Former Water Resources Minister and former President of the Newspapers Proprietors Association of Nigeria (NPAN) Alhaji Ismaila Isa Funtua has sued one of his bankers, Unity Bank Plc, for allegedly defaming him, The Nation reports.

In the suit filed with his company, Bulet International Nigeria Limited, before the High Court of the Federal Capital Territory (FCT), Abuja, the plaintiffs accused the bank, among others, of publishing false information about them.
They stated in a supporting affidavit that the bank in 2013, initiated a debt recovery proceeding against Bulet International before the FCT High Court.
The suit was dismissed on February 24, 2014 for lack of reasonable cause of action.
The plaintiffs said before the suit was dismissed, Unity Bank, acting through its lawyer, I. H. Yamah  allegedly wrote to Bulets’ tenants and clients , including the Federal Ministry of Finance, CBN, Australian and American embassies as well as the Ministry of Foreign Affairs, conveying an auction sale notice.
The notice threatened to sell the property being occupied by the tenants.
Unity Bank was said to have alleged in the letters that the plaintiffs owed it N6.856 billion and that the bank was in possession of perfected legal mortgage over the landed property occupied by the tenants.
The bank allegedly warned them not to have any commitments to their landlord.
The plaintiffs stated that the bank sued them again this year and that they have challenged the legality of the suit on the grounds that it failed to disclose reasonable cause of action.
They added that ruling had been fixed for February 2015.
The plaintiffs further stated that while parties awaiting the ruling fixed for February, the bank proceeded to publish public notices and articles in numerous newspapers as well as on its Internet outlets specifically addressed to the CBN, containing list of its alleged debtors. One of the plaintiffs, Bulet, was allegedly listed.
According to the plaintiffs, the letters, newspaper reports and public notices by the bank meant that the plaintiffs are bankrupt and irresponsible and took bank credit with intent to defraud the bank.

The plaintiffs said the letters and public notices were understood by the public that Unity Bank gave them N6.8 billion credit facilities and was in custody of perfected mortgage instruments, which exposed the plaintiffs’ tenants to auction sale of their home and offices.
They denied that the bank granted them N6.8b loan, describing the allegation by the bank as baseless and an attempt to damage their reputation.

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