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Stanbic IBTC Group litigation portfolio as at 30 June 2022 consisted of 387 cases with aggregate value of monetary claims against the Group of N60,085,485,057.90 (Sixty Billion, Eighty- Five Million, Four Hundred and Eighty-Five Thousand, Fifty-Seven Naira Ninety Kobo), while the claims in other currencies were USD$1,912,819.15 & GB £74,284.64.
The claims against the Group are generally considered to have a low likelihood of success and the Group is actively defending the same. Management believes that the ultimate resolution of any of the proceedings will not have a significantly adverse effect on the Group.
Where the Group envisages that there is a more than average chance that a claim against it will succeed, adequate provisions are raised in respect of such claim. In addition, the Bank subsidiary is involved in litigation against AMCON.
The 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.
The Bank in its response to the allegation, emphatically denied the allegations and provided evidence to AMCON to the contrary.
AMCON proceeded to apply to the Central Bank of Nigeria (CBN) to debit the Bank’s account with the sum requested to be clawed back, plus possible accrued interest.
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. The case is currently adjourned to 26 September 2022 for settlement of issues.