The Investment and Securities tribunal has adjourned the suit filed against the Director – General of the Securities and Exchange Commission (SEC) on the implementation of the decision against FINMAL to buy back shares and accrued bonus shares belonging to the estate of late Ambassador Abubakar Garba Gobir that were wrongly sold or risk being committed for contempt.
The panel of the court stated that the next proceeding will be done virtually.
During the proceedings, counsel for the SEC, Mr Momoh Ali, told the court that the implementation process had been initiated and some days of grace should be given.
Consequently, the counsel for the plaintiff, Mr Ahmed Tafa, prayed the court for an adjournment to allow them complete the process before the matter comes up again.
The four-man panel, in their resolution, concluded that the case be adjourned till December 15.
It will be recalled that the tribunal had ordered the Director-General of SEC to implement the decision against FINMAL to buy back shares and accrued bonus shares belonging to the estate of the late Ambassador Abubakar Garba Gobir that were wrongly sold or risk being committed for contempt.
According to the notice of Consequence of Disobedience of Court Order (Form 48) which was filed at the registry of the Investment and Security Tribunal on November 2, 2023, the DG of SEC may be committed to prison due to inaction of the group chairman of NGX.
The late Ambassador Gobir had shares in various companies before his demise on November 27, 1996.
Upon his demise, a letter of Administration was granted over his Estate by the Probate Registry Division of the High Court of Kwara State on August 6, 1997.
Subsequently, one of the heirs was appointed by the court to manage the estate in the interest of other beneficiaries.
According to the counsel, Mr Ahmed Tafa, “FINMAL Finance & Services Ltd was ordered by SEC to buy back the shares wrongly sold and pay the accrued dividend to the Estate of Late Ambassador Gobir vide the letter dated 9th February 2021 on or before March 15, 2021, a directive which FINMAL failed to comply with.
However, FINMAL Finance & Services Ltd, in a letter dated 1st June 2021 and jointly authored by Alh. Umaru Kwairanga and Mr. Adedapo Adekoje, offered to pay the Estate of Late Ambassador Gobir a sum of N90,000,000 in full and final settlement of the indebtedness which accrued from unauthorized sale of the shares belonging to the Estate; the Estate promptly rejected the offer.
Despite a letter of reminder dated June 16, 2021, FINMAL Finance & Services Ltd has refused to comply with SEC directives, leading the Estate to approach the Investment and Securities Tribunal to seek redress and hope for closure.
The tribunal in its judgment dated January 6, 2023, directed SEC to enforce its decision against FINMAL Finance & Services Ltd.
The estate met another brickwall because SEC has refused to comply with the judgment of the tribunal. The Estate has now resorted to contempt proceedings against the DG SEC to compel him to comply with the terms of the judgment by enforcing its decision dated February 9, 2021.
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