Dangote In Legal Trouble As Judge Freezes His Accounts

A Federal High Court in Lagos today restrained twenty commercial banks in Nigeria from honoring any checks written by Sani Dangote, a younger brother of Africa’s richest man, Aliko Dangote.

Also affected by the judge’s order are checks written by Mr. Dangote’s companies, Dansa Foods Limited and Bulk Pack Services Limited.

The orders were given because Union Bank sued Mr. Dangote and his companies over their alleged failure to repay a debt of about N5 billion despite repeated demands.

A Federal High Court in Lagos today restrained twenty commercial banks in Nigeria from honoring any checks written by Sani Dangote, a younger brother of Africa’s richest man, Aliko Dangote. Also affected by the judge’s order are checks written by Mr. Dangote’s companies, Dansa Foods Limited and Bulk Pack Services Limited.

The orders were given because Union Bank sued Mr. Dangote and his companies over their alleged failure to repay a debt of about N5 billion despite repeated demands.Justice Okon Abang ruled that the restraining order would be in force until September 11, 2014 to enable him to hear all applications filed in a suit brought by Union Bank against Mr. Dangote.
 
Justice Abang ordered the banks to file affidavits within five days disclosing details of Mr. Dangote's accounts with them.

The affected banks are Access, CITI, Diamond, Ecobank, Enterprise, Fidelity, First Bank, First City Monument Bank (FCMB), Guaranty Trust Bank (GTB), Heritage, Keystone, Mainstreet, Skye Bank, Stanbic IBTC, Standard Chartered Bank, Sterling, United Bank for Africa (UBA), Unity, Wema and Zenith.

Justice Abang also ordered Union Bank to file a commitment to indemnify the defendants in the event that the court ultimately determines that the freezing order ought not to have been made.

“In line with Order 28 Rule 2 of the rules of this court, an interim order is hereby made restraining the banks from allowing the defendants to operative their accounts with them especially honoring withdrawal of funds,” the judge said.

“I think the dictate of justice demands that a preserving order should be made to preserve the res (subject matter) of this suit," Justice Abang added.

In two separate suits against Mr. Dangote and his companies, Union Bank had asked the court to issue an injunction restraining all commercial banks in Nigeria from allowing Mr. Dangote and his firms to withdraw funds from their accounts pending the determination of the suits. FULL STORY