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Legal Claims Against Stanbic IBTC Hit N68bn as AMCON Suit Adjourned To Dec 06

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Stanbic IBTC Group litigation portfolio has hit N68 billion as as at 30 September 2022.

This consisted of 398 cases with aggregate value of monetary claims against the Stanbic IBTC Group of N67,981,440,083.51 (Sixty Seven Billion, Nine Hundred and Eighty One Million, Four Hundred and Forty Thousand, Eighty Three Naira, Fifty One Kobo) only, while the claims in other currencies were USD$1,912,819.15 & GB £74,284.64.

In the ordinary course of business, the Group is exposed to various actual and potential claims, lawsuits and other proceedings that relate to alleged errors, omissions, breaches.

Stanbic IBTC says based on present information and the assessed probability of such existing claims crystallising that the group has adequate insurance cover and / or provisions in place to meet such claims.

Meanwhile, the lenders bad debt litigation against AMCON was adjourned to 06 December 2022 for settlement of issues for determination.

Stanbic IBTC Bank had in December 2012 entered into an agreement with AMCON to purchase the Eligible Assets (non-performing loan) of a client, which the Bank had classified as “doubtful”.

AMCON confirmed its willingness to purchase the proposed Eligible Assets at a total consideration of about N10 billion, which sale/purchase was concluded in December of 2012.

AMCON by a letter dated October 4, 2017 informed the Bank of its intention to reprice the loan and claw back the sum of N5.7bn, being what was alleged to be excess overpaid consideration, as a result of what was felt was an overvaluation.

Stanbic IBTC in its response to the allegation, emphatically denied the allegations and said it provided evidence to AMCON to the contrary.

Accordingly, the Bank instructed its lawyers to institute a Legal action against AMCON, pursuant to which it obtained an interim injunction (ex-parte), restraining AMCON and the CBN from debiting its Account for the alleged claw-back sum.

However, the Bank subsequently discovered that AMCON had earlier filed a suit at the Federal High Court, Lagos Division on the same subject matter.

Consequently, the Bank discontinued its suit against AMCON and filed a Counter-Claim against AMCON in its suit.

On 26 September 2022 when the matter came up for settlement of issues, the Judge granted the Bank’s application to amend its defence processes in the matter.

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