Heritage Bank Ordered to Shut Down Over Failure to Pay Over N710 Million Debt
- Heritage Bank has been given a garnishee order by the National Industrial Court of Nigeria in Makurdi, Benue State, instructing it to close down
- The order comes as the bank has disobeyed an order directing it to pay the claimants a sum exceeding N710 million
- Amid the concerns of customers, the bank insists it is in a good financial state
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The National Industrial Court of Nigeria in Makurdi, Benue State, has issued a garnishee order instructing the closure of Heritage Bank Limited.
This action comes as a result of the bank's failure to remit over N710 million to Shehu Mudi and 656 other entities.
The court has maintained that the bank's branches must remain shut until it fully adheres to the directives outlined in the garnishee order.
Source: UGC
Also in the lawsuit are the Adamawa State Government, the Ministry of Education in Adamawa State, the Post-Primary School Management Board in Adamawa State, and the Attorney General and Commissioner for Justice in Adamawa State.
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Recently, Legit.ng reported that the Central Bank of Nigeria (CBN) approved the appointment of Akinola George-Taylor to assume the role of Managing Director and Chief Executive Officer of Heritage Bank.
Judge orders closure of Heritage Bank
As stated in Lawsuit Number MCN/MKD/07m/202, the presiding judge, Justice (Dr) I.J. Essien, has instructed Inspector General of Police Olukayode Egbetokun to ensure police security for the court's sheriffs in executing its directive.
According to The SUN, Justice Essien emphasised that the garnishee entity (Heritage Bank) had become an obstruction to the due process of justice.
Justice Essien said that while considering the exhibits and arguments, he recalls the court made an Order Absolute in Exhibit A, which stipulated that the garnishee should remit the judgment amount sought through this application within three days.
He said the directive was further validated by the Court of Appeal and confirmed in Exhibit D, contained within its ruling documented as Appeal Number CA(MK/26/2022).
He added that within the judgment, the garnishee was explicitly instructed to fulfil the judgment debt within three days.
The judge ruled:
Further to this, despite the Garnishee undertaking to pay the Judgement sum to the anywhere located in Nigeria until the Garnishee (Heritage Bank PLC), comply with the Order of the Court of Appeal directing it to pay to the judgement creditor the sum of N710,969,140.19 which is made up of the judgement sum and interest accrued from 14/12/2021 to December 2022 which sum has been set side by the garnishee and party represented by the bond entered into at the Court of Appeal by the garnishee.
Heritage bank reassures customers as concerns mount
Amid growing concerns voiced by the bank's customers regarding Heritage Bank's financial stability, the bank has asserted that everything is in order.
In a recent communication by Ozena Utulu, the Corporate Communication Manager, Heritage Bank revealed that it had initiated comprehensive plans to ensure its long-term viability.
According to PM News, the statement also acknowledged recent reports indicating a reduction in the bank's workforce, clarifying that the affected employees have been appropriately compensated for their transition.
In an exclusive note to Legit.ng, Heritage Bank dismissed the report, claiming that there is no truth to it.
It stated:
We assure our esteemed customers that no branch of the bank has been taken over by any supposed judgment creditors. We state that depositor’s funds are safe and secure and the Bank will as usual, continue to carry out its operations within law.
The rumours surrounding Heritage Bank's financial health have persisted over the years. In response to these concerns, the Central Bank of Nigeria (CBN) previously reassured the Nigerian public that the bank was not undergoing financial distress.
During its most recent Monetary Policy Committee meeting held in July, the central bank emphasised that key financial indicators were relatively stable and underscored the resilience demonstrated by Nigerian banks.
Heritage Bank reacts to report claiming staff stole N49bn and disappeared
In related news, Legit.ng reported that the executive leadership of Heritage Bank Plc has vehemently refuted the allegations of fund misappropriation made against their staff members in an online report.
The management has labelled these assertions as both “wrong and defamatory”. The recent incident involves claims raised by an online news platform, which, in the past week, asserted that the Head of IT at Heritage Bank diverted a sum of N49 billion into separate accounts and subsequently disappeared.
Following a period of silence concerning these allegations, the bank's management has addressed the unverified reports.
In an official press release, the bank asserted that no fund diversion involving any of its staff members has occurred.
Source: Legit.ng
