Following a debt recovery suit filed by the authorities of Guaranty Trust Bank (GTB) Plc against the son of a former head of state, General Murtala Mohammed identified as Risqua Mohammed and his company, AMG Petroenergy Limited, Justice Saliu Seidu of the Federal High Court in Lagos issued a mareva injunction barring Mohammed from getting access to their money .
This implies that he can not make any transactions in any of his bank accounts until the ban is lifted after the hearing of the case.
According to reports, GTB filed an ex-parte application through its lawyer, Norrison Quakers (SAN) following the alleged refusal of Mohammed and his company to liquidate a multi-million dollars credit facility, despite repeated demands. The bank said on May 18, 2011, it granted two import credit facilities for $40 million to the defendants, with an additional existing term loan of N630 million.
The bank acclaimed that it gave the defendant the facilities for financing the establishment of local letters of credit in favour of the Nigerian Liquefied Natural Gas/Nigerian National Petroleum Corporation/Pipeline and Products Marketing Company (NLNG, NNPC/PPMC) and NGL to fund the payment of Gas/Condensate/Naphtha lifted based on allocation to the company by the Federal Government.
According to the bank, the facilities were also used to fund the establishment of letters of credit for the purchase of refined petroleum products from international and local sources for onward supply to Total Plc, Mobil Oil Plc, Exxon Mobil and Total Upstream.
Furthermore, the facilities were meant to contain associated freight and logistics costs, as well as refinancing of the existing debts of the first defendant (AMG Petroenergy Limited).
It was alleged that Mohammed, as the Chairman and Managing Director of the first defendant, took it upon himself to repay the credit facilities of the defendant.
However, as at August 2012, when the tenure of the facilities ended, the promises were not kept.
The GTB lawyer said it was evident from the defendants’ actions that they were not prepared to liquidate the outstanding debt, which stood at N1.365 billion, while interest continues to accrue at the bank’s lending rate.
He said, “The plaintiff cannot allow this flagrant violation of the defendants’ obligations to continue as its depositors’ and shareholders’ funds are at risk.”
The bank assured to underwrite that the defendants wouldnt have made the order.
Meanwhile, the judge adjourned the case till November 3, 2014 for further hearing.
