By Ishaya Ibrahim
Seplat Petroleum Development Company Plc (Seplat) on Friday said it was not a party to the litigation involving its chairman, Dr. ADC Orjiako.
An interim order of a Federal High Court, Abuja initiated by the Asset Management Corporation of Nigeria (AMCON) that was against Orjiako had empowered the corporation to enforce recovery of debts he allegedly owes AMCON.
Dr. Orjiako’s assets – houses in Lagos, London, Maryland (United States of America) including his shares in Seplat were ordered to be foreclosed by the court based on his alleged huge indebtedness to AMCON.
His company, Sheba Exploration & Production Company and its President, Dr. A.B.C Orjiako and Allenne Limited were also barred from withdrawing monies from their accounts domiciled in all the banks.
Reacting to the development on Friday, August 30, Seplat in a statement signed by Mrs. Edith Onwuchekwa, company secretary, said: “As stated in the NSE announcement dated 17th October, 2018 of the same subject, Seplat is not a party to the litigation. The company will continue to monitor the progress of this suit and would issue further communication on the matter as appropriate.”
“This announcement is being made by the company in accordance with Rule 17.10, Rulebook of the Nigerian stock Exchange, 2015 (Issuers Rule),” Onwuchekwa added.
President Muhammadu Buhari recently signed into law, the Asset Management Corporation of Nigeria (AMCON) (Amendment) Act, 2019 that increased the powers of the corporation to enforce recovery of debts from its debtors.
Based on the law, AMCON through its lawyers had written all commercial and merchant banks in the country, directing them to forthwith, stop those linked to the debts from having access to the accounts.
Orjiako’s Sheba Exploration & Production Company and Allenne Limited are barred from withdrawing monies from their accounts domiciled in all the banks.
The interim court order also empowered the Receiver/Manager the mandate to take over all the assets of Sheba E & P, its subsidiaries and affiliate companies, the personal assets of Orjiako (including his homes at Parkview Estate, Ikoyi, in London and Maryland in the US), his offices and offices of SEPLAT, a floating, production, storage and offloading (FPSO), as well as the shares of SEPLAT Petroleum and Development Company Plc and Platform Petroleum, pending the determination of the case.
On August 15, 2019, Justice T.O. Taiwo, had ruled in an interim order against the defendants – Sheba Exploration & Production Company and its President, Dr. A.B.C Orjiako (as chairman of board of directors of Seplat) and Allenne Limited in favour of AMCON (plaintiff/applicant), and appointed Francis Chuka Agbu, (SAN), as Receiver/Manager.
AMCON solicitors, Lexavier Partners Legal Practitioners, in the letter stated: “We refer to the above subject matter in which we act as Solicitors to AMCON, which is the plaintiff in the suit.
“We wish to inform you that on Thursday, August 15, 2019, the Federal High Court, holden at the Federal Capital Territory, Abuja, coral, Honourable Justice TO Taiwo, made the attached order against the defendants and in favour of AMCON.
“By the said Order, your bank is mandated to henceforth prevent all further withdrawal(s) of funds and other debit transactions from the defendants’ account (s) domiciled with your bank and also furnish the Receiver/Manager within seven days from the date of this notice, with comprehensive statements in respect of each account.
“The said account should be forwarded within the stipulated time to an address at Ikoyi. Please note that the attached order is binding and enforceable against your bank and shall remain so until and unless a subsequent order is made to the contrary.
“Consequently, we expect that your bank will fully comply with the order. Thus, we shall be constrained to initiate contempt proceedings against the bank and every responsible officer of the bank in the event that the terms of this order are flouted or in any way undermined by any action or conduct of the bank or any of its officers.”
When TheNiche contacted AMCON on Friday, the spokesman, Jude Nwauzor confirmed the latest development and did not rule out that negotiations were in progress between Orjiako and the AMCON solicitors.
Regardless, Seplat shares at the NSE on Friday was still among the choice stocks as it traded 46, 793 while the price remained unchanged from N397.70 throughout the trading week.