The plethora of Heritage Bank Plc’s problems appears to have reached its climax.
Lukmon Akintola, reports that the National Industrial Court of Nigeria in Makurdi, Benue State, has given a garnishee order for the Akin George- Taylor-led financial institution to be shut down.
The garnishee order is not in isolation of the bank’s decision to ignore an order by the court directing it to pay claimants including Shehu Mudi and 656 other entities a sum exceeding N710 million in a suit with number MCN/MKD/07m/202.
The order came amidst customers’ and financial sector stakeholders’ concerns that the bank has a liquidity ratio problem.
The court maintained that the bank’s branches across the country must remain shut until it fully adheres to the directives outlined in the garnishee order.
The presiding judge, Justice (Dr) I.J. Essien, instructed the Inspector General of Police Olukayode Egbetokun to ensure police security for the court’s sheriffs in executing its directive.
Justice Essien emphasized that the garnishee entity (Heritage Bank) had become an obstruction to the due process of justice. Justice Essien said that while considering the exhibits and arguments, he recalls the court made an Order Absolute in Exhibit A, which stipulated that the garnishee should remit the judgment amount sought through this application within three days.
He said the directive was further validated by the Court of Appeal and confirmed in Exhibit D, contained within its ruling documented as Appeal Number CA(MK/26/2022). He added that within the judgment, the garnishee was explicitly instructed to fulfill the judgment debt within three days.
The judge ruled: Further to this, despite the Garnishee undertaking to pay the Judgement sum to anywhere located in Nigeria until the Garnishee (Heritage Bank PLC), complies with the Order of the Court of Appeal directing it to pay to the judgment creditor the sum of N710,969,140.19 which is made up of the judgment sum and interest accrued from 14/12/2021 to December 2022 which sum has been set aside by the garnishee and party represented by the bond entered into at the Court of Appeal by the garnishee.”
Also in the lawsuit are the Adamawa State Government, the Ministry of Education in Adamawa State, the Post-Primary School Management Board in Adamawa State, and the Attorney General and Commissioner for Justice in Adamawa State.
Heritage Bank Limited has been bedeviled by a series of issues, however, the bank’s crisis went to an all-time high with the appointment of George-Taylor as its Managing Director and Chief Executive Officer.
Meanwhile, in a recent statement by Ozena Utulu, the Corporate Communication Manager, at Heritage Bank Limited, she assured that the bank had initiated comprehensive plans to ensure its long-term viability.
The statement, also acknowledged recent reports indicating a reduction in the bank’s workforce, clarifying that the affected employees have been appropriately compensated for their transition.
In yet another statement sent to www.theoctopusnews.com by Heritage Bank on Wednesday, August 9, the bank posited that the reports in the media regarding the garnishee order by the court were false.
In the statement titled “Rejoinder To The False Publication Against Heritage Bank Plc”, the bank noted that there is no truth to the story.
Further, it said that none of the bank’s branches had been taken over by any supposed Judgment Creditors.
It added that the dispute between the bank and the purported Judgement Creditors are currently sub judice as they are subject to a case at the National Industrial Court, Federal High Court, Court of Appeal, and Supreme Court of Nigeria. The statement also said that the bank is cooperating with relevant law enforcement agencies to investigate the issues and ensure that identified lawbreakers are swiftly prosecuted.
Heritage Bank assured that depositors’ funds are safe and secure and that the bank will as usual continue to carry out its operation within the law.
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