First Bank’s chairman, M.D. convicted

Chairman of First Bank of Nigeria Limited, the managing director, and the bank itself have been convicted of contempt of court by a federal high court in Lagos.

Chairman Mrs. Ibukun Awosika and MD Adesola Adeduntan had objected to the contempt charge brought against them by the Ejama-Ebubu community in Eleme Local Government Area, Rivers.

But the court dismissed the objection, and found the bankers guilty of refusal of the bank to release N17bn and interests that First Bank allegedly guaranteed to pay the community on behalf of Shell Petroleum Development Company of Nigeria Limited.

The bond is a guarantee of the judgment debt against SPDC in an oil spill suit filed by the community.

But Justice Ibrahim Buba suspended the sentencing for three months to enable the bank and its officials to purge themselves of the contempt.

According to him, if the convicts failed to purge themselves of the contempt by September 6, they would be sent to prison.

Ten indigenes of Ejama community in Ogoniland had sued Royal Dutch Shell Plc, Netherlands, Royal Dutch Shell Plc, United Kingdom; and SPDC at the Federal High Court in Port Harcourt over alleged oil spills that occurred when Shell operated in the community.

Justice Buba, who heard the case while sitting in Port Harcourt, awarded N17bn to the community’s representatives in 2010, as well as 25 per cent interest on the principal sum, among other reliefs.

Shell then appealed the judgment, and applied for a stay of execution pending the appeal.