SAN drags Heritage Bank to court over alleged fraudulent account manipulation

A Senior Advocate of Nigeria, SAN, Barrister Dada Awosika, is currently locking horns in a legal battle with Heritage Bank over alleged fraudulent manipulation of his account with the bank.

The suit which the bank describes as “scandalous, highly vexatious, embarrassing, speculative and should be dismissed with substantial cost”, is instituted at the Federal High Court sitting in Ikoyi, Lagos State, South West Nigeria.

The senior lawyer, Awosika, alleged that Heritage Bank conscripted him to open the aforementioned account in order that the judgment sum arising from certain terms of settlement executed between his clients (Mr. Olajide Aleshiloye Williams/Otunba Segun Jawando) on one hand and the bank on the other hand in Suit No: LD/7313/2014 between Mr. Olajide Aleshiloye Williams/Otunba Segun Jawando vs. Beach Resorts Nigeria Plc/Heritage Bank Limited be paid into the said account.

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At all material times, he agreed with the  bank to run and operate the said current account in line with good banking standards and employ the best ethical and professional manner consistent with global best practice.

Further to the aforementioned paragraphs and in line with the consent judgment entered on the 12th of January 2016 between the Plaintiff’s client and the Bank, the bank paid a total sum of N250,000,000.00 into the Plaintiff’s stated account as judgment sum at various times in February, 2016, May 2016 and August 2016 for the benefit of the Plaintiff’s clients who were Claimants in Suit number LD/7313/2014.

Surprisingly, in the narration contained in the statement of account of the Plaintiff, the bank manipulated the narration and discreetly described the payment as fees to the Plaintiff.

However, in breach of the sacred mandate donated to the bank for the running of the Plaintiff’s account, the bank disclosed, furnished and passed over to the Federal Inland Revenue Services (FIRS) the Plaintiff’s financial and banking detail and this ultimately led FIRS to issue notice to the Plaintiff to remit unpaid taxes for 2016/2017 (as Company Income Tax and Value Added Tax (VAT)} directing the Plaintiff to pay the sum of N23,274,166.19 being turnover of N258,601,846.53 in custody of the bank.

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The Plaintiff immediately responded to the FIRS letter and debunked the insinuation and misconceptions that the Plaintiff was operating as a limited liability company to pay Income Tax.

Thereafter it came as a shock to the Plaintiff that the bank posted POST NO DEBIT on the Plaintiff account without any communication to the Plaintiff in compliance with a directive of FIRS.

Upon protest at the Bank’s premises at Adeola Odeku on the 6th of February, 2019, the bank informed the Plaintiff that the freezing order on the Plaintiff’s account was directed to be placed by FIRS as a result of banking and financial details submitted to FIRS by the Bank.

The Plaintiff made further protest to FIRS headquarters in Abuja, which later issued a directive to the bank to remove the ‘Post No Debit’ and any other freezing orders, placed on the  Plaintiff’s account from February 4, 2019.

The bank placed this’ Post No Debit’ on the Plaintiff’s account without any order of court and also furnished the Plaintiff’s banking and financial records to FIRS without order of court or consent of the Plaintiff.

The Plaintiff alleged further that he made several transfers and cash deposits into his firm’s account with the bank, When the bank thereafter sent notifications of receipt of this transfers and cash deposits, the Plaintiff discovered that the bank had surreptitiously applied a debit of over N23 Million into the Plaintiff’s firm’s account without notice of such activity to the Plaintiff.

Heritage bank in its statement of defence denies all the allegation of facts contained in the statement of claim but admits that the Plaintiff opened a bank account so that the judgement sum in suit LD/7313/2014 may be paid into it.

In further denial of the Statement of Claim, the Heritage bank states as follows:

The narrations used to describe the payments made into the Plaintiff’s accounts in February 2016, May 2016 and August 2016 were not manipulated but reflected the actual purpose/narration.and that the Defendant acted at all times in line with extant rules and regulations and laws.

The bank complied with all respect with the provisions and requirements of the Code of Conduct in the Nigerian Banking Industry.

The bank having been appointed by the Federal Inland Revenue Service as a Collecting Agent, therefore acted in line with the relevant statutory provisions when it released the Plaintiff’s information to the Federal Inland Revenue Service

In further denial of the Statement of Claim, the bank states that the Plaintiff was indeed aware that a lien was placed on his Account as the Plaintiff was informed by the bank’s Branch Manager about the lien through a telephone call immediately it was placed.

The bank further avers that having received final notification from the Federal Internal Revenue Service that the Plaintiff had outstanding tax obligations and in the absence of any challenge from the Plaintiff to such notification, the bank was consequently entitled to treat the funds deposited by the Plaintiff in his accounts, in excess of N76,000.00  as not available to meet drawings.

There was no sham or bogus debit of over N23Million in the Plaintiff’s account. Rather, a lien was legally and properly placed on the Plaintiff’s account in view of the Plaintiff’s failure to resolve all outstanding tax issues with the Federal Inland Revenue Service.

It was the Plaintiff’s obligation to resolve all tax issues with the Federal Inland Revenue Service, and to forward documentation regarding such final resolution to the bank.