INTELS seek N1b compensation against EFCC over share dividends investigation

The Integrated Logistics Services Nigeria Limited (INTELS), has urged the Federal High Court, Abuja to award 1 billion naira as compensation (damages) against the Economic and Financial Crimes Commission Act (EFCC) and three others for investigating its shareholding structure and dividends.

The oil and gas logistics company in the suit marked FHC/ABJ/CS/485/2023 urged the court to hold that the anti-graft agency cannot probe a civil issue like its shareholding structure.

Joined in the case as respondents were the EFCC, Marko Zaja, Bay Blue Company S.A, and an unnamed defendant described as an “unknown person”.

In its Originating Summons dated April 5, 2023, and seen by Nairametrics, the company’s lawyer, Ama Etuwewe, SAN explained that during his client’s operation, it received a letter from the EFCC dated September 12, 2022, and titled “INVESTIGATION ACTIVITIES, RE: REQUEST FOR INFORMATION, FIRST REMINDER”.

He added that the investigation bordered on an alleged August 11, 2022, letter.

The senior lawyer accused the EFCC operatives of pursuing civil petitions contrary to its rules of engagement.

He stated,

“By the said written letter of August 11, 2022, the 1st Defendant demanded the Plaintiff to produce information regarding the date of incorporation of the Plaintiff company, its parent company, and its associated companies.
“The list of the Plaintiff’s shareholders, the Plaintiff’s shareholding structure, the record of the Plaintiff Company’s dividends, loans, and cash advances availed to various shareholders, and the Plaintiff’s record of all share sales and purchases.

“The alleged act of the 1st Defendant (EFCC) was based on the 2nd and 4th Defendants’ petitions to the 1st Defendant of April 26, 2010, and March 10, 2022, respectively.

“That the alleged act which the 1st Defendant is now purporting to investigate is a civil issue that relates to the ownership, transfer, and distribution of Plaintiff’s shares which acts are within Plaintiff’s Corporate Governance and internal affairs and are ordinarily triable in a Court of competent jurisdiction and not one which the 1st Defendant has the jurisdiction to conduct over the Plaintiff.

Etuwewe asked the court to stop the remaining defendants from using the EFCC to determine or re-open any civil petition against the company.

His relief reads,
“ A declaration that from the combined construction and interpretation of the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended), the Companies and Allied Matters Act 2020, the Economic and Financial Crimes Commission Act, and the Judgment of the Federal High Court, Lagos in SUIT NO. FHC/L/CS/1 19/90: BAY BLUE COMPANY S.A. v. NICOTES CONTAINER TERMINAL SERVICES LIMITED delivered on 30th August 1992, the 2nd and 3rd Defendants cannot use the 1st Defendant to re-open and determine the distribution, transfer, allotment and ownership of shares and their shareholding status in the Plaintiff.

“A declaration that from the combined construction and interpretation of the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended), the Companies and Allied Matters Act 2020, and the Economic and Financial Crimes Commission Act, and other relevant laws and statutes, the 4th Defendant cannot use the 1st Defendant to interfere in the corporate governance and internal affairs of the Plaintiff for the purpose of reversing an alleged expropriation of shares, the payment of operatives and or through inviting, further inviting and or investigating the Plaintiff, its staff, any other person (s) or authority, from inviting employees and directors particularly but not limited to Michael Epelle, the Plaintiff’s Executive Director Legal, Corporate, Contract and Compliance, on matters bordering on the allotment, transfer, distribution, ownership, and payment of dividends on the shares of the Plaintiff and/or the corporate governance and other internal affairs of the Plaintiff, based on the petitions of the 2nd and 4th Defendants or at all.

“The sum of N1,000,000,000.00 (One Billion Naira) as damages against the defendants jointly and severally for their unlawful and ultra vires acts against the Plaintiff.”

But the EFCC filed a notice of preliminary objection asking Justice Inyang Ekwo to strike out SUIT NO: FHC/ABJ/CS/485/2023 for being frivolous and an abuse of the court process.

EFCC’s lawyer, Barrister Abba Muhammed contended that the applicant is not entitled to any declaration or relief against any anti-graft agency.

He maintained that the EFCC is empowered by law to investigate all forms of financial crime.

“The Plaintiff/Applicant is engaging in forum shopping by filing multiple suits on the same subject matter.
“That the 1st Defendant/Respondent through its officers and agents is statutorily empowered to investigate any reported case of economic and financial crime and determine the extent of financial loss by the government including the complaint against the Applicant herein.
“It will be in the interest of justice to refuse the reliefs sought as the plaintiff/Applicant will not be prejudiced by the refusal of the order,” the lawyer added in his preliminary objection seen by Nairametrics.

At the resumption of proceedings on Monday, the matter seen was on the cause list, but proceedings did not hold for today.

As seen on the cause list, the matter was shifted to May 21, 2024, for a hearing.

However, Justice Ekwo and Justice Donatus Okorowo are on duty as vacation judges for the Abuja division of the court.

INTELS Nigeria Limited is a firm engaged in integrated logistics services for the Nigerian Oil and Gas Industry.
Nairametrics recalls that in October 2017, the federal government ordered the Nigerian Ports Authority (NPA) to cancel the boat pilotage monitoring and supervision contract with INTELS over an alleged contract breach.

Based on EFCC’s court processes, the company has allegedly instituted several cases demanding restraining orders against agencies of the federal government.