ECOBANK VS HONEYWELL. THE REAL FACTS OF THE MATTER. WHAT DOES A BANK THAT HAS BEEN PAID IN FULL STILL WANT?

Obafoluke Otudeko

There's been plenty of sensationalism concerning this case between the 2 institutions mentioned above that is- Honeywell vs ECOBANK, without people knowing the whole truth of the matter as it were. And because one of the sides was making so much noise and the other was quiet as a matter of in house policy, it was like the other side was guilty for being quiet!

Just because one of the parties had adopted to be quiet and allow the matter take the proper course (follow the proper laid down law procedures for solving matters/issues), without making noise doesn't make them guilty or that they didn't know what to do too.

So what we have done here, is to bring out the the facts of the matter as it were and all that was done before things went askance and got to where it is now.

The summary of the fact is that, Honeywell Group as a business entity and in the individual capacities of those that own the brand and subsidiaries, does not owe ECOBANK a dime, Kobo in any form at all. And that's because all that was owed the bank in any form, totalling ₦3.5 billion Naira after the agreement made with the bank's authorities with evidence was paid. That is, liquidated and settled and therefore, Honeywell Group meaning with all the subsidiaries owes ECOBANK no money, no amount whatsoever.

Honeywell Group commenced discussions with Ecobank in May 2012, with a view to agree a full and final settlement of the indebtedness of three of its operating companies (including HFMP) to Ecobank. All three facilities were originally consummated with the then Oceanic Bank Plc.

Several meetings were held between the parties with a view to achieving a settlement of Honeywell’s indebtedness to the Bank. A settlement was finally reached at the meeting of the 22nd July, 2013 involving the Chairman, Dr. Oba Otudeko CFR, and Ecobank’s Managing Director, Mr. Jibril Aku to the effect that Honeywell should pay the sum of N3.5 billion in full and final settlement of its indebtedness to the Bank

Following the meeting, Honeywell immediately paid the sum of N500 million and wrote to the Bank confirming the terms of the agreement. The Bank responded via its letter dated 22nd July, 2013 confirming the payment agreement, and stating that the balance of N3 billion should be paid before the exit of CBN examiners from the Bank.

Although the Bank stated that the balance be paid before the exit of the CBN examiners, no specific dates were mentioned and Honeywell was not informed of the date of the eventual exit of the CBN examiners even though they kept engaging the Bank in discussions.

After several attempts by Honeywell to discuss the payment of the balance, the Parties held a meeting on the 12th of December, 2013 at Honeywell’s offices involving their Chairman, Dr. Oba Otudeko CFR, the Bank’s Managing Director, Mr. Jibril Aku, the Bank’s Company Secretary, Mrs. Denike Laoye and other senior executives of both organizations. At this meeting, the payment agreement was reiterated by the Parties. There was no mention that the settlement amount had changed or that the agreement had lapsed. The said Bank executives who were in attendance have the authority to bind the Bank statutorily.

Following the 12th of December 2013 meeting, Honeywell completed the payment of the agreed N3.5 billion on the 9th of January, 2014. Honeywell thereafter wrote to Ecobank referring to the meeting of
December 12, 2013 and the agreement reached while also confirming that the payments had been completed as agreed. Honeywell also requested for: (1) a letter of discharge, (2) the release of the securities held against the facilities and (3) an update of the Group’s accounts on the CBN CRMS portal.

More after the break.

ONDO STATE AND GOVERNOR OLUWAROTIMI ODUNAYO AKEREDOLU

Governor Rotimi Akeredolu

Uneasy is the head that wears the crown is what they normally say and we can bet that's the current situation with the handsome white beard wearing SAN and Governor of Ondo State.

Heard that as it is currently, one of the major headache the Governor is battling and seriously grappling with is the monumental indebtedness he met on ground when he came on as Governor. So colossal is the debt that it can cause the faint hearted to give up.

But still yet not wanting to have a defeatist attitude, he has plunged headlong into the situation and his making every effort at finding how to unravel the complicated knots.

We hear that servicing the debt alone mad and is deducted straight from source by the FG. So before the state's monthly allocation is received, some major macheting is done, so what arrives can only just​ sort out salaries and little more.

So for the man who had made many promises in his campaign to get here, the reality on ground is a bit scary and not too nice. So to try to meet up one way or the other, is taking some very ingenious manuevirings at least to make the little happening now to even happen.

It's not even like what normally accrues to the state in the 1st instance is anything great or extraordinary, but that stipend and couoled with the overload of weight and expectations is causing his excellency's white beard to be going more platinum by the day.

One only hopes that respite one way or the other, would come the way of the Governor, somewhere, somehow.

Maybe by virtue of foresight now, it would have been better not to have thought to carry this kind of unrelenting weight at all from the start.

But like they also say, it is where the battle is fiercest, that one sees the strong/hero/Champion or powerful.