17th October, 2019
By Akin Kuponiyi
The Asset management corporation of Nigeria (AMCON) has filed an application before a Federal high court sitting in Lagos, southwest Nigeria, seeking an order to compel M. R.S Oil Staff Multipurpose Cooperative Society (formerly Chevron Oil Co-operative Society Limited) to pay a debt of N1,684,878,475.92 or in the alternative the court should issue an order to attach and sell properties used as security for the loan and another property purchased with the loan.
In an affidavit in support of debt recovery suit sworn to by a legal practitioner Mr. Fortune Mayaki and filed before the court by a Lagos lawyer, Barrister Olaniyi Ogunbode, it was alleged that between June/July 2007, M. R. S. Staff multipurpose society limited, formerly Chevron Oil Staff multipurpose Co-operative Society limited, was a customer of United Bank Plc and applied for and was granted a loan of N500million for the purpose of meeting financial needs of the company’s various members for tenor of 24 months; repayment of 4 semi -annual principal repayment of N125million with interest, from members monthly contribution /deduction and an irrevocably domiciliation of the company’s members monthly contribution /deduction to the bank.
It said when the loan agreement between the two parties expired and the sums therein due for repayment, the plaintiff demanded for the repayment, but that the company failed, refused and neglected to repay the loan despite the repeated demands.
It further stated that, by another offer of credit facilities letters dated 9 November, 2007, and 14 April, 2008, the bank offered the defendants a mortgage loan in the sum of N1billion for a tenor of 20 years to finance its members acquisition of residential properties and the repayment source was supposed to be from members contribution /deductions and other acceptable source to the bank and legal mortgage over property financed, N125million to meet the myriad financial needs of its teeming staff. However the defendant has refused and neglected to repay the loan facilities despite repeated demands.
According to the affidavit, the various loan facilities were secured with :
i. The Certificate of Occupancy in respect of the property at Riverview Estate Isheri, Ogun state, consisting of 33 units of 4 bedrooms bungalow each building covering approximately total gross area of 154.30 square meters valued at N370,197,800.
ii. Governor’s consent in respect of the property at 17Kasa Street, Bariga Lagos Purchased with N42million out of the N1billion mortgage facility granted the defendant.
Consequently, the plaintiff urged court to order the company to pay its indebtedness in the sum of N1,684,878,475 with interest or, in the alternative, the court should issue an order directing the plaintiff to attach and sell the aforementioned two properties.