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The management of Wema Bank has cleared the air on the alleged contempt suit that was earlier filed against it by the management of Heritage Bank Plc.

Wema Bank records 54.54% profit increase as at Q3 2019   

In a short telephone interview with Nairametrics, the bank, through its spokesperson, Olumide Yomi-Omolayo, explained that it is true that a Federal High Court Judge had demanded the presence of some members of its board over a case before him, which has nothing to do with contempt suit.

He said, “Wema Bank and his staff are law-abiding and will not disobey the law. The Judge requested their presence over a certain case but not over contempt suit. That is mere speculation and act of mischief.”

Nairametrics had reported that Heritage Bank some times ago won a court case against the Ondo State Government and the state’s Attorney General. This was to the tune of N1 billion. The state paid the sum of N600 million to the bank, with N400 million left outstanding.

In the same vein, Heritage Bank also obtained a court win against Idanre Local Government Universal Education Authority to the tune of N405.4 million.

[READ: Wema Bank to float N20 billion bond)

At this point, Wema Bank, with whom the Ondo State Government had an account, deposed an affidavit, saying that the Ondo State Government had up to N745 million in its account.

Meanwhile, the affidavit, which was deposed by Wema Bank, had been attached to an order of nisi that Heritage Bank had obtained in an effort to ensure that both parties comply with the court order.

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Note that an order nisi is a court order that comes into force at a future date, particularly when a condition is not met. In other words, an order nisi works in such a way that if a condition in a ruling is unmet, the ruling becomes a decree absolute and binding.

In the case of Wema Bank, there was a principle judgment sum of N134 million which was meant to become absolute if the bank failed to remit the money in its custody to Heritage Bank.

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - abiola.odutola@nairametrics.com.


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