Guarantee Trust Bank promises to oppose attempt by Innoson to take over its facilities

NIGERIA'S Guarantee Trust Bank (GTB) has vowed to oppose moves to seize its assets following the recent court judgement which awarded some of its property to automobile manufacturer Innoson Motors as the ongoing spat between the two companies over a N2.4bn ($6.63m) debt escalates.

In 2014, the federal high in Ibadan had ordered GTB by way of what is known in legal jargon as a garnishee order absolute, to pay N2.4bn to Innoson with a 22% interest per annum on the judgment sum until the final liquidation of the judgment debt. However, GTB appealed this decision at the appeal up to the supreme court but on February 27, the Supreme Court dismissed GTB’s appeal and upheld the decision of both the federal high court and the appeal court.

As a result, yesterday, Innoson began acquiring GTB's assets nationwide but the bank is resisting the move, saying it is taking all necessary legal steps to ensure that no illegal or fraudulent execution is carried out. Yesterday, Innoson announced that it obtained a writ of Fifa from the federal high court in Awka, Anambra State, against GTB to effect the judgment given by the Ibadan court and upheld by the Supreme Court of Nigeria.

Innoson spokesman Cornel Osigwe, said: “The chairman of Innoson Group, Chief Dr Innocent Chukwuma, has through a Writ of FiFa taken over Guaranty Trust Bank for and on behalf of Innoson Nigeria as a result of the bank’s indebtedness to Innoson Nigeria. In a landmark decision on February 27 2019, the Supreme Court of Nigeria dismissed GTB’s appeal against the judgment of Court of Appeal, Ibadan Division and we have taken over GTBank operations in Awka and Nnewi and other branches are coming soon."

However, GTB has assured its customers of the safety of their funds, clarifying that the said judgement is applicable to the account of the Nigerian Customs Service Board domiciled with the bank, rather than the bank as an entity. A GTB spokesman said legal action will be taken to safeguard shareholders' deposits.

He added: “The attention of Guaranty Trust Bank PLC has been drawn to statements circulating in the news and social media in respect of a purported enforcement of a judgement of the federal high court, Ibadan, Oyo State, at one of its branches in Anambra state. The bank as a law-abiding corporate citizen is taking all necessary legal steps to address this situation and ensure that no illegal or fraudulent execution is carried out.

“It is important to state that the judgment allegedly in issue is in respect of a Garnishee Proceedings against the account of the Nigerian Customs Service Board domiciled with the bank and not against the bank as an entity. The bank remains committed to providing best-in- class customer experience to all its valued customers.”