…begins contempt proceedings against WEMPCO directors
United Bank for Africa (UBA) Plc has secured interim preservative orders against Switzerland-based energy trading company Vitol SA and four shipping companies over an alleged $242 million petroleum products diversion claim, while commencing contempt proceedings against directors of WEMPCO over alleged disobedience of a court order.
In the petroleum products dispute, a Lagos State High Court last Thursday granted three prayers in UBA’s application for interim Mareva injunction orders, including measures to restrain the dissipation of assets and dealings with funds up to the disputed amount by Vitol SA.
The bank alleged that Vitol wrongfully released cargoes of petroleum products consigned to the order of UBA in the bills of lading, preventing the bank from taking possession of the products after the completion of the voyage.
Addressing the court, Bode Olanipekun, SAN, lead counsel for UBA, urged the judge to grant the interim preservative orders against Vitol and the other shipping companies.
In her ruling, Justice K. A. Jose granted three prayers in the bank’s application.
“Prayers 1–3 are granted as prayed against the 2nd Respondent only,” the judge ruled.
The application was brought pursuant to Order 43 Rule 1 of the High Court of Lagos State (Civil Procedure) Rules 2019 and the Lagos State High Court Practice Direction No. 2 of 2019.
UBA is seeking to establish in the substantive proceedings that Vitol SA and the owners of the vessels are liable for alleged conversion, misrepresentation and negligence arising from the non-delivery of the petroleum products.
The bank also cited 34 financial institutions and public agencies, including commercial banks, merchant banks, microfinance banks, the Nigerian Ports Authority and the Nigeria Customs Service, in connection with the application.
In an affidavit supporting the application, Anthony Chilaka, UBA’s Group head of Recoveries and Remedial Management, stated that the bank issued a letter of credit in favour of Vitol SA to facilitate a petroleum products transaction.
According to the affidavit, the cargo was transported to Nigeria, where the vessels’ masters issued several bills of lading.
UBA alleged that Vitol subsequently endorsed the bills of lading “to the order of” the bank and handed over the original copies to it.
The bank maintained that the endorsement entitled it to take possession of the cargo upon completion of the voyage.
However, Chilaka stated that UBA had not received the gasoil despite the completion of the voyage.
“The applicant has not been given possession of the gasoil despite completion of the voyage,” the affidavit stated.
UBA alleged that the cargo was instead applied to the use of another party, arguing that the respondents’ failure to deliver it amounted to conversion and negligence.
The bank further contended that the respondents had obligations arising from the transaction and the endorsement of the shipping documents, which they allegedly failed to fulfil.
Read also: INEC assures Kwarans of inclusive, credible 2027 elections
UBA also alleged that cargoes associated with the transactions were diverted to other parties after their voyages instead of being delivered to the bank.
In a separate development, the Federal High Court, presided over by Justice Aluko, has granted UBA’s application for substituted service of Form 49 on directors of WEMPCO named as alleged contemnors in the case of UBA v. WEMPCO.
The application forms part of proceedings to determine whether the individuals disobeyed a court order and whether they should be committed to prison for contempt.
The directors named as alleged contemnors are Lewis Shui Ngor Tung, Phillip Shui Chei Tung, M.A. Ola Yusuf, Tung Lawrence Blake, Aali Aare Hadji Tokunbo, Paul Shui Po Tung, Tung Robert, C.L. Ip and Taiwo Alli.
UBA’s counsel argued that serving Form 49 on the alleged contemnors was necessary to enable them to appear before the court and show cause why an order of committal should not be made against them.
The bank’s counsel also alleged that WEMPCO directors and some members of staff had taken illegal steps in an attempt to disobey the court order.
The court’s approval of substituted service provides a procedural step towards notifying the individuals concerned in accordance with its directions.
Form 49 is a notice requiring an alleged contemnor to show cause why an order committing them to prison should not be made over alleged disobedience of a court order.
The Federal High Court had earlier issued a Mareva injunction and appointed a receiver/manager over some of WEMPCO’s assets following the company’s indebtedness to UBA in the sum of N61,445,695,993.76, representing N61.45 billion.
The contempt proceedings will determine whether the named individuals disobeyed the court’s order and whether the legal grounds for committal have been established.
Related News
Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.
