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United Bank for Africa (UBA) Plc has asked the Federal High Court in Lagos to jail nine people linked to Western Metal Products Co. (WEMPCO), accusing them of forcing a court-appointed receiver out of the group’s steel plant in Ogun state.
The application is the latest step in the bank’s drive to recover N61.45 billion the industrial group allegedly owed.
The committal notice was published in a national daily Tuesday under an order allowing service by newspaper.
It accuses the respondents of “wilful, deliberate and orchestrated disobedience” of an April 2 order and asks that they stay in prison until they comply.
Those named are Lewis Shui Noor Tung, Phillip Shui Che Tung, Alhaji M.A. Ola Yusuf, Tung Lawrence Blake, Alli Aare Hadji Tokunbo, Paul Shui Po Tung, Robert Tung, CL Ip and Taiwo Alli, all listed at 18 Wempco Road, Ogba, Ikeja.
Nigerian Enamelware Co. Plc, listed on the Nigerian Exchange, is one of 17 defendant companies. Robert Tung sits on its board.
On April 2, Justice Akintayo Aluko froze up to N61.45 billion of WEMPCO-linked funds across 27 banks and fintechs. He also appointed Romeo Ese Michael receiver-manager over assets not already pledged under a 2019 credit agreement.
In its affidavit, UBA alleges that after bailiffs handed over the Magboro/Ibafo plant, the respondents brought in thugs, broke the receiver’s locks and threatened his staff with “serious injury.”
It says they kept running the business and diverting its funds. None of the allegations has been tested in court, and WEMPCO’s response was not immediately available.
The court papers also show failed talks. On June 22, WEMPCO‘s lawyers, led by Dapo Akinosun, SAN, asked UBA for an urgent meeting, proposing an interim standstill, a joint reconciliation of accounts and “a structured framework for repayment.”
UBA’s lawyer, Temilolu Adamolekun, SAN, replied the next day. He questioned how a company “deploying physical violence on ground and resorting to self-help” could seek dialogue, but agreed to meet.
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