By Jude-Ken Ojinnaka
Justice R. H. Gwandu of the National Industrial Court, Lagos division has ordered Ecobank Nigeria Limited to pay sum of N1.086 billion being judgement debt into the account of the Chief Registrar of the Industrial Court, pending the hearing and determination of the appeal filed by the Bank against the judgement of the Court.
Justice Gwandu gave the order in his ruling on an application filed by Ecobank for stay of execution of the judgement of the Court.
The court had in its judgement delivered penultimate Friday ordered Ecobank to pay the sum of N1,086,611,589.11 to 1,742 ex staff of defunct Oceanic Bank being their alleged unpaid Staff Savings and gratuities, and an application by the ex- employees for an Order nisi for attachment of all monies outstanding to the credit of Ecobank Nigeria Ltd with the Central Bank of Nigeria and other Banks in Nigeria, for satisfaction of the judgement debt.
In its ruling on the application to stay execution of the judgement, the court refused the bank’s application and granted the Order nisi with order that the judgement sum be paid into the account of the Chief Registrar of the Court pending the hearing and determination of the appeal.
Recall that following the suit filed by 1,742 ex-Oceanic Bank employees against Ecobank who were denied their legitimate entitlements by the bank, the National Industrial Court, Lagos had in a judgement ordered Ecobank Nigeria Limited to pay the sum of N1, 086,611,589.11 to the ex staff.
Dissatisfied with the judgement of the Court, Ecobank filed an appeal challenging the judgement of the Court and also filed an application for stay of the execution of the judgement.
On the other hand, the ex-employees brought an application for the order nisi for attachment of sums to the credit of the bank with the Central Bank of Nigeria and Commercial Banks to satisfy the judgement sum for the judgement debt.
Justice Gwandu in his ruling on the application for stay, and the application for order nisi said:
“Bench ruling read on motion for stay, Order nisi is granted as prayed, stay of execution is denied”.
In the Bench ruling, the Court also held : “It therefore behoves this Court to take steps to protect the integrity of its judgement and see that the Res is protected even when the appeal may or may not be pending. I hereby order the judgement debtor to pay the judgement sum into the account of the Chief Registrar of National Industrial Court of Nigeria pending the outcome of Appeal filed by the Applicants.”
Recall that in a representative action suit filed by Mr Nwabu Okoye, counsel to Mr Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba and Lolade Olaribigbe who sued for themselves and as representatives of 1,733 other ex-employees of defunct Oceanic Bank now Ecobank Nigeria Limited, the Claimants sought for the following orders from the National Industrial court.
“An order directing Ecobank Nigeria Limited to pay the outstanding sum of N1,146,470,393,.62 being the sum total of their savings in the Staff Savings Investment Trust Fund, (SSITF) scheme contributed by 1,742 ex-employees of Oceanic Bank made up of those transferred to Ecobank upon merger of the two banks through the merger of February 15, 2012 and those whose employment were determined before or upon the said merger which remain unpaid till date.
In their statement of claim, the claimants averred that the amount outstanding as their contributions to the SSITF scheme which the defendant (Ecobank) has refused to pay till date stands at N926,901,065.60.
The claimants also asked the court for an order directing Ecobank to pay the sum of N159,710,523.51 being the total sum due as gratuities to 48 of the claimants and another sum of N59, 858,804,.51 being the short payments of severance or redundancy paid by the defendant to 74 of them.
They further asked the court for an order directing Ecobank to pay 22 percent interest per annum on the aforesaid sums of money being claimed from February 15, 2012 until judgement and thereafter at the rate of 12 percent per annum until the liquidation of judgement sum.
However, Ecobank through its counsel S.C Arubike filed a statement of defense to the suit as well as counter- claim.
In its counter- claim, Ecobank demanded for the sum of N967,529,765.38 being the excess of severance and/or redundance benefits paid to the ex-employee of Oceanic Bank,(claimants) at 24 percent interest from October 30, 2014 until any judgement is delivered in its favour and interest of 10 percent untill the judgement sum is fully liquidated.
The bank also counter-claimed for the sum of N225,724,076,.78 being the excess gratuities and entitlements paid to the representative members by Ecobank, another sum of N1,541,491,955.03 being the sum outstanding and payable as at October 30, 2014 on credit facility granted to the representative members of the ex-staff.
The defendant bank further counter-claimed the sum of N41,640,000,000 being the amount due and outstanding as at December 31, 2010 on the Term Loan of N25,054,481,701.00 granted by Oceanic Bank (now Ecobank) to the former employees through the Board of Trustee of the Trust Fund which facility was accepted and fully utilized by the claimants for the purchase of shares of blue-chip companies and which sum the ex-staff (claimants) have failed, neglected or refused to repay till date despite repeated demands.
The summary of the claimants’ case according to the court was that prior to the merger of Oceanic Bank and Ecobank on December 30, 2011, there was in existence in Oceanic Bank the SSITF introduced by Oceanic Bank in 2004 to encourage its staff to save part of their earnings towards further financial commitments and assist staff in planning for their retirement.
It was further stated that the initial minimum contribution of each employee to the SSITF scheme was N6000 per month which was in August 2005 increased to a minimum of N14,000 per month .
Subsequently in 2008 the level of contributions to the staff Fund was further reviewed upward by the bank and the review was based on the level of the staff involved, ranging from N20,000 to N50,000.
It was also stated that sometimes in May 2010, Oceanic Bank discontinued deduction of the SSITF from its employees’ monthly salaries while every staff whose appointment was terminated or resigned from the bank was duly paid his or her SSITF.
The claimants further said that by a letter of February 13, 2012 , Ecobank advised a total number of 788 employees of Oceanic Bank whose employment has been transfered to the bank (Ecobank) consequent upon the merger, that effective from Wednesday February 15, 2012 such employees’ contract of employment with Ecobank has been terminated.
Claimants stated that 697 of those whose employments were terminated are among the 788, these 697 according to the plaintiffs have unpaid claims, including non payment of their SSITF contributions among others.
It was also contended by the claimants that the calculations and payments of final entitlement to 706 out of the 788 employees whose employment was determined as of February 15, 2012 or resigned as an option under the merger with Ecobank was flagrantly violated.
After analysing the facts of the case as submitted by counsel to both parties, Justice R.A Gwandu dismissed the defense and counter- claim of Ecobank on the ground that the bank failed to put credible evidence before the court to support its counter-claim.
In his judgement, Justice Gwandu held that upon the consummation of the merger , Ecobank has fully acquired all the assets and liabilities of Oceanic Bank and cannot repudiate or push some of the liabilities on its employees, more so when it was the bank that was in control of the SSITF scheme.
The trial judge further held that Ecobank cannot deny that there was contributions to the SSITF or show evidence that the claimants were paid the sum they claim.
“I therefore hold that the claimants have proved their case and are entitled to the payment of the sum of N926,901,065.60 being the sum total in the account of the Staff Savings Investment Trust Fund being contributions of 1,742 ex-employees of Oceanic Bank made up of those transferred to Ecobank upon the merger and whose contract of employment were determined on February 15, 2012 and those whose employment otherwise were determined before or upon the merger.
On the issue of unpaid gratuities, Justice Gwandu said: “I therefore hold that the defendants are liable to the claimants in the sum of N159,710,523.51 being the total sum due on the basis of years of service of the employees”.
However, the judge refused the claimants’ claim of N59,858,804.51 being the total sum of short payment of severance or redundancy package paid by Ecobank to 74 of the claimants.
Justice Gwandu said it would be unfair for the court to hold Ecobank responsible for any lapses that may have occurred under the agreement brokered by ASSBIFI since some of the ex-staff benefited under the agreement and are happy under the same agreement more so the intervention of ASSBIFI had the consent of the ex-staff.
“10 percent interest is granted on the judgement sum from 30 days after the judgement is delivered till it is fully liquidated” the judge ordered.
