₦61.4bn debt: UBA pursues contempt proceedings against WEMPCO directors

From John Silas, Lagos.

The Federal High Court has granted an application by United Bank for Africa (UBA) Plc for substituted service of Form 49 on nine directors of WEMPCO named as alleged contemnors in an ongoing dispute over the company’s indebtedness to the bank.

The application was granted by the court, presided over by Justice Aluko, as part of proceedings to determine whether the individuals disobeyed an earlier court order and whether they should be committed to prison for contempt.

The directors named in the proceedings are Lewis Shui Ngor Tung, Phillip Shui Chei Tung, M.A. Ola Yusuf, Tung Lawrence Blake, Aali Aare Hadji Tokunbo, Paul Shui Po Tung, Tung Robert, C.L. Ip and Taiwo Alli.

UBA’s counsel argued that service of Form 49 was necessary to notify the individuals and require them to appear before the court to show cause why an order of committal should not be made against them.

Counsel further alleged that WEMPCO directors and some members of staff had taken steps in an attempt to disobey the court’s order.

The court’s approval of substituted service provides a procedural means of bringing the notice to the attention of the named individuals in accordance with the court’s directions. It does not, in itself, amount to a finding that they are guilty of contempt.

Form 49 is a formal notice requiring an alleged contemnor to show cause why an order of committal to prison should not be made for alleged disobedience of a court order.

The proceedings stem from an earlier order of Mareva injunction granted by the Federal High Court, alongside the appointment of a receiver/manager over certain assets of WEMPCO.

According to information supplied by UBA, the order followed the company’s alleged indebtedness to the bank in the sum of ₦61,445,695,993.76, representing more than ₦61.4 billion.

The latest application forms part of UBA’s efforts to enforce the existing court order and pursue the contempt proceedings against the individuals named in the case.

The matter remains before the court, which will determine whether the alleged contemnors disobeyed its order and whether any committal sanction is warranted.

The allegations against the named directors have not been established by a final determination in the contempt proceedings.

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