The scandal of how Folio sold the shares of the Daily Times of Nigeria (DTN) in the Nigerian Stock Exchange to settle part of the loan secured in acquiring the DTN‘s shares, and how Fidelis Anosike disposed off the property of the company situated at Cold Harbour Lane, London and diverted the proceeds have continued to reverberate.
On Saturday the Senator representing Anambra South Senatorial District, Senator Ikechukwu Obiorah described as malicious news reports entitled; Inspector General Of Police Orders Criminal Investigation Of Senator Ikechukwu Obiorah Over N80million In Bounced Checks & More, currently in circulation in the cybersphere and some sections of the Nigerian Print Media.
In a correspondence obtained by Elombah.com, entitled; Re: MALICIOUS PUBLICATIONS AGAINST SENATOR IKECHUKWU OBIORAH, DSV LIMITED, AND ITS AFFILIATE COMPANIES, The Senator through his Solicitors, V.I.Bosah sought to debunk the view that Senator Ikechukwu Obiorah, DSV Limited, or its affiliate companies paid for their shares by issuing bounced cheques.
It would be recalled that in a widely publicized order, the Court of the Federal Capital Territory in the Federal territory judicial division holden at Abuja on the 1st day of February, 2010 before the honorable Chief Judge, Justice L. H. Gummi was said to have ordered the Inspector General of Police [IGP], Onovo to commence criminal investigation on Senator Ikechukkwu Obiorah over bounced checks issued by him to Folio Communications Limited.
The Court was quoted as saying:
“Upon reading the application ex-parte and the accompanying affidavit of Paul M. Ayam and upon hearing Dr. Alex A. Izinyon, SAN praying this Honorable Court for the following Orders:- leave to prefer criminal charge by way of direct compliant of facts constituting the offense pursuant to the provision of S.143 [d] and 185 [b] of the criminal procedure code. It is hereby ordered as follows:- The Court hereby direct that the Inspector General of Police should investigate this matter and report back to this court within 14days from today.” –
Background
The Federal Government, represented by NICON Insurance, held 96.05 per cent of DTN‘s shares and that pursuant to the privatisation programme of the government, bids were invited from prospective investors.
Folio Communications later emerged the preferred bidder for the FG‘s shares in DTN, but since Folio was in no position to make immediate payment for the shares, it borrowed N750m from bank.
As soon as the Bureau of Public Enterprises handed over the business and undertakings of the DTN to Folio Communications, Fidelis Anosike and his brothers pounced on the assets of DTN to the detriment of other shareholders of the newspaper outfit.
Folio sold the shares of the DTN in the Nigerian Stock Exchange to settle part of the loan secured in acquiring the DTN‘s shares. Anosike also disposed off the property of the company situated at Cold Harbour Lane, London and diverted the proceeds.
On Friday, January 29, 2010 A Federal High Court in Lagos nullified the acquisition of the majority shares of the Daily Times of Nigeria PLC by Folio Communications Limited, owned by Mr. Fidelis Anosike.
The court‘s verdict was sequel to a suit filed by a shareholder of the DTN, D.S.V Limited, which challenged the propriety of the acquisition and complained of gross and illegal sale of the DTN assets.
The plaintiff had also joined DTN, Afribank, Folio Communications, Fidelis Anosike, Charles Anosike and Noel Anosike as co-defendants in the suit.
Delivering his judgment, Justice Okechukwu Okeke held that the acquisition was illegal, null and void.
The judge further held that Folio Communications did not pay for the majority shares of the DTN, saying that it was unlawful for Folio to still parade itself as a shareholder of the DTN.
The judge also reverted the shares acquired by Folio Communications to the DTN.
Justice Okeke said, “There is no doubt that this is a worrisome case; that Folio Communications took a loan to pay for the shares of Daily Times of Nigeria.
“I find it as a fact that Folio Communications, Fidelis Anosike, Charles Anosike and Noel Anosike did not pay a kobo to acquire the shares of Daily Times of Nigeria; they only used the properties of DTN to stand as security to obtain loan to pay for the majority shares of DTN.
“I find great merit in the plaintiff‘s (D.S.V Limited) case and I accordingly grant the following reliefs.”
But on Thursady, February 10, 2010, A Federal High Court in Lagos granted an interim injunction restraining Senator Ikechukwu Obiorah and DSV Limited from implementing the resolution of the Extra Ordinary General Meeting (EGM) of Daily Times held on January 31, 2010.
The court, presided over by Justice Binta Murtala-Nyako, also restrained the respondents from parading themselves as shareholders of Daily Times pending the conclusion of the matter.
Justice Nyako’s order was sequel to an ex-parte motion brought by a shareholder of Daily Times, Mike Nwachukwu, who alleged that he would suffer great injuries from the decisions and actions taken at the recent EGM of Daily Times Plc.
He also urged the court to restrain Obiorah and DSV from exercising any control and power as shareholders in the management of the newspaper conglomerate.
After entertaining arguments from the plaintiff’s counsel, Damian D. Dodo, Justice Nyako barred Obiorah and DSV from taking any action that would be injurious to the newspaper company pending the hearing and determination of the motion on notice.
The court also barred in the interim the Corporate Affairs Commission from executing any of its statutory powers arising from instructions or directives of Obiorah and DSV pending hearing and determination of the suit.
Nwachukwu had earlier in suit FHC/L/CP/13/2010 prayed the court to restrain Obiorah and DSV from taking any step(s) or acting in any manner injurious and prejudicial to his interest in Daily Times.
Subsequently, in Newspaper and Online reports evidently sponsored by some parties to the dispute, It was said that “The Senator had under a previous court arraignment been directed to pay N80million to Folio Communications Limited in exchange for assets in Daily Times Nigeria. As agreed, he issued four checks for N20million each [see copies of checks] dated December 20, 2005 through one of his companies by the name Harlesden Engineering Limited drawn on a Zenith Bank account housed inNnamdi Azikiwe Avenue in Awka, Anambra. The checks which were numbered from 10208049 to 10208052 bounced upon deposit in Folio Communication’s Diamond Bank account housed at Victoria Island, Lagos. The checks were re-deposited a month later [January 20th 2006] and all four checks bounced again [see copies of check]”.
But In a statement, Senator Obiorah said:
“The general public will recall that the purchase price for the Federal Government’s 96.05% shareholding in DTN was N1.25Billion out of which Senator Obiorah paid the sum of N500M in exchange for approximately 40% of the shares of DTN. This payment was made directly to BPE vide the following cheques (see attached cheques):
Standard Trust Bank certified cheque dated 21st July 2004 for the sum of N100M
Guardian Express Bank certified cheque dated 22nd July 2004 for the sum of N300M
Guardian Express Bank certified cheque dated 23rd July 2004 for the sum of N100M.
Folio Communications Ltd borrowed N750M from Hallmark Bank, mortgaging in the process DTN’s assets.
In effect, Folio did not pay one kobo for the shares of DTN.
The loan of N750M later with accumulated interest went up to N950M which Folio purportedly paid as follows:
Proceeds of sale of DTN asset – N500M
Loan obtained by DTN from Afribank – N315M
Loan obtained by DTN from Afrinvest – N135M
Total = N950M
Due to non-repayment of the above loans with the accrued interest, Afribank petitioned the Federal High Court for the winding up of DTN PLC which suit is pending.
Upon another petition filed by our clients, the Federal High Court in its judgment delivered on the 29th of January 2010 ordered and declared, inter alia:
a. That Folio Communications Ltd did not pay for the 140,252,900 shares hitherto allotted to it in DTN PLC.
b. That the 140,252,900 shares hitherto allotted to Folio have reverted back to DTN PLC
c. That Folio is no longer a shareholder of DTN PLC
d. That the debt owed Afribank Plc by DTN is capable of being settled by the sale of the reverted shares without the need to wind up DTN”.
But the sponsored publications had claimed that “With Senator Obiorah at the realm of affairs at the DSV, new terms of agreement had to be drawn between FCL and DSV. But the process of reaching agreement proved tumultuous. Senator Ikechukwu Obiorah was said to be pulling his weight as a Senator and FCL. He wanted more out of the agreement terms than FCL was willing or able to part with. And as a result, the matter quickly became a litigant’s affair. A total of eight lawsuits were filed between the two parties and pending in court until a group of prominent Nigerians intervened. The group consisting of Chief Anthony Idigbe, Mrs Onyiuke-Okereke and Nduka Obaigbena facilitated of a settlement agreement outside of Court that was later rectified by Court. The terms of settlement was made on November 18th 2005 at the Federal High Court of Nigeria Holden at Lagos under Suit No: FHC/L/CP/594/05. The terms of settlement was signed by Senator Obiorah and the management of FCL in the presence of Chudi Offodile, a legal practitioner” [see the terms of settlement].
They continued: “One of the essential points of the terms of settlement called for the parties to immediately withdraw all cases pending in court and to desist from taking further legal actions against each other. It was agreed that Board appointments into Daily Times Nigeria shall be in the ratio of 60% for FCL and 40% for DSV. It was also mutually agreed between the parties for “Senator Ikechukwu Obiorah to remit N160million to FCL as being part of the purchase price of some of the properties acquired by FCL as a result of the purchase of Daily Times Nigeria. The Senator, through his Corporate Ideals Properties Limited paid the N160million through an Intercontinental Bank check for N100million dated November 28th 2005 with check number 00000095, another Intercontinental Bank check for N40million dated November 18th 2005 with check number 00000096, and an Intercontinental Bank certified check for N19million dated November 18th 2005 with check number 00007554. The remainder of N1million was brought in as cash”.
Still Continuing the publications claimed that “Trouble began as the management of FCL received supposed payments from Senator Obiorah as part of the terms of settlement. This was as the FCL management team brought to the attention of Senator Obiorah of the bounced checks in written form on August 7th 2006. It was indicated in the letter that if the dud checks were not rectified, the team will take further legal steps.
“The Senator failed to respond to the August 2006 letter and so the team at FCL filed their complaints officially to the police but the Senator pulled all available strings and his weight to block all the complaints made to the Nigeria Police from seeing the light of the day. The Senator then reacted further in a show of strength to have the Economic and Financial Crimes Commission[EFCC] pick up the FCL team in June 2007.
“To cap it, the Senator in a brazen and puzzling move descended on the team of FCL in to take over control of the Daily Times Nigeria. The move was halted by Justice Binta Nyako of the Federal High Court sitting in Lagos. The Judge restrained Senator Obiorah from taking steps or any step or action injurious to the privatized Daily Times. The Court Order was handed onFebruary 11, 2010”.
In his reaction, Senator Ikechukwu Obiorah pointed out that he was sworn in as a senator in June 2007. That is about three years after his acquisition approximately 40% interest in Daily Times of Nigeria Plc. And so the allegation that “Senator Ikechukwu Obiorah was said to be pulling his weight as a Senator and FCL” to influence the litigation in his favour is a distortion and simply false!
Also on the allegation that “It was also mutually agreed between the parties for Senator Ikechukwu Obiorah to remit N160million to FCL as being part of the purchase price of some of the properties acquired by FCL as a result of the purchase of Daily Times Nigeria”, the Senator said; “Please refer to the attached Caveat Emptor in This Day of Tue., February 2, 2010, page 15, paragraph three by Folio Communications Ltd which said thus: ”
“The public should note that DSV Ltd who sought to buy shares in the Folio Communications Ltd- core investors in the DTN- were unable to fulfill conditions precedent in the acquisition of such shares”.
“The inconsistency in those two publications should speak eloquently for itself”, The Senator concluded.
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