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(FLOWERBUDNEWS) Federal Inland Revenue Service (FIRS) and First Bank Plc have opted for out of court settlement in a N25 billion damages suit filed against them by an indigenous company, Biatemp Ventures Ltd over alleged account manipulation.

The company had sued First Bank and FIRS before a Federal High Court, Abuja, demanding N25 billion special and general damages over alleged manipulation of its domiciliary account and illegal withholding of its tax clearance certificate.

Biantemp alleged that First Bank manipulated its domiciliary account with over-bloated turnover of over 6.8 million dollar (about N2.4 billion) whereas the deposit made to the account within the period was only 22,475 dollar (about N786,000)

At the resumed hearing of the case before Justice Binta Murtala Nyako, lawyers to the two defendants informed the court that their clients were interested in settling the matter out of court.

Messrs S.M. Jimmy and N.J. Kalu representing First Bank and FIRS respectively prayed the court to adjourn the matter to allow parties further explore the out of court settlement already set in motion.

Counsel to the plaintiff, Lloyd Ekweremadu from Adegboyega Awomolo (SAN) Chamber confirmed the position and did not oppose the request for adjournment.

Ekweremadu said that, though the case was set for the hearing of the motion of the 2nd Respondent’s to amend its Statement of Defence, he would not oppose the request for adjournment of the case.

He confirmed that the respondents had approached his client seeking to settle the case out of court.

Justice Nyako expressed delight over the development stressing that the court always encourage parties in disputes to explore alternative resolution options.

The matter was then adjourned till Dec. 2 for the Report of Settlement.

The plaintiff had alleged in the suit that the manipulation of the account was discovered by the FIRS intelligent findings when it filed it’s 2018 tax return forms and awaiting issuance if its tax clearance certificate .

The plaintiff stated that, rather than issuing the certificate, FIRS accused the company of grossly understating its income.

Specifically, the federal revenue collection agency said its intelligent unit discovered that the company had a turnover of over 6.8 million dollar in its corporate account which was withdrawn by its Chief Executive Officer in about four respective transaction.

FIRS therefore requested the company to pay a revised tax liability of about 439,000 dollar before the tax clearance could be issued.

The plaintiff said it was shocked with the discovery by the FIRS because the company never transacted, deposited and withdrew amount of that magnitude in its domiciliary account within the period.

The company said the deposit made to its domiciliary account within the period was only 22,475 dollar being consultancy fee paid by its client, Forte Upstream Services Ltd.

It stated that the said deposit of 22,475 dollar was actually withdrawn by its Chief Executive Officer in about four respective transaction.

The plaintiff therefore alleged that the acclaimed deposit of over 6.8 million dollar discovered by the FIRS intelligence was an enlarged mirror of the 22,475 dollar deposited by its client for consultancy services into its account.

“The alleged huge multiple cash dollar withdrawal seen to be made by the plaintiff’s Director between 7th and 21st December 2017 as captured by the FIRS were also enlarged mirrors of actual dollar withdrawals made by the plaintiff’s director”

The plaintiff said when it obtained its statement of account from First Bank the inflow and outflow of fund was in complete variance with the record made available by the FIRS.

In a statement of defence to the suit, FIRS had indicted First Bank claiming that it received from First Bank PLC, the purported overbloated turnover of the account of the plaintiff
Specifically, FIRS said that it received from First Bank a compact disc containing evidence that the company received a cash flow of over 6.8 million dollar.

The federal revenue collection agency said it acted based on the information provided by the bank.

First Bank, on its part, had denied the allegations that it manipulated the account of the plaintiff.

In a statement of defence, the bank claimed: “The plaintiff’s account was never at any point in time tampered with, let alone manipulated.

“There is no time that First Bank, as a well known and reputable bank in Nigeria engage in such irresponsible and scandalous act,” the bank had stated. (NAN)

(FLOWERBUDNEWS) The Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees (AUPCTRE) has urged the Federal Government to step up its efforts in the areas of security, economic diversification, basic infrastructure among others.

The union in a communiqué issued at the end of its National Governing Council Meeting held in Calabar, frowned at the deteriorating state of the nation.

The communiqué signed by the AUPCTRE’s National President Benjamin Anthony and National Secretary Raphael Imade, charged the government to quickly tackle some of the challenges confronting the nation.

One of the key challenge identified by the union was that of insecurity, where it frowned at the high spate of kidnapping, robberies, ritual killings and other vices.

While noting the various economic policies of the government, the union however urged that more efforts be placed on diversifying the economy from over reliance on oil.

(FLOWERBUDNEWS) A Lagos High Court, sitting in Ikeja has ordered the Lagos State House of Assembly to halt probe of former Governor Akinwunmi Ambode pending the determination of the case filed by the former governor against the Assembly.

The court adjourned the matter brought before it by Ambode, against the Speaker of the State House of Assembly, Mudashiru Obasa in connection with the ongoing probe of procurement of 820 buses by Ambode’s administration.

Justice Adesanya adjourned till 20th of November, 2019 for the respondents in the matter to respond to the plaintiff’s application.

Adesanya had on 29th, October 2019 ordered the Speaker and some members of State House of Assembly to appear before the court after hearing a motion ex-parte moved by Ambode’s lawyer, Tayo Oyetibo (SAN).

Other defendants are the Clerk of the House, A. A. Sanni, who signed the newspaper ads, inviting Ambode to the House by 2pm; Chairman of the Ad hoc Committee set up by the House to probe the procurement, Fatai Mojeed; and members of the Committee: Gbolahan Yishawu, A. A. Yusuff, Yinka Ogundimu, Mojisola Lasbat Meranda, M. L. Makinde, Kehinde Joseph, T. A. Adewale and O. S.

The lead counsel to the respondents, Mrs. Adenike Oshinowo prayed the court to give them time to respond to the application because it was received late.

“We were served the notice very late yesterday and we shall be opposing the application and we are asking for a date,” she said.

Following the adjournment, Justice Adesanya, also ordered the parties to maintain the status quo pending the outcome of the case.

The former Governor had instituted a suit against the Assembly to contest the constitutionality of the probe of the buses which were procured based on budgetary approval as part of the Bus Reform Project of the State Government designed to revolutionize public transportation.

According to his statement of claim before the court, Ambode said contrary to deliberate misrepresentation of facts by the lawmakers, the procurement of the 820 buses was well captured in the 2018 Appropriation Law which was duly approved by the House.

“In section 1 of the Bill, the 1st Defendant (House of Assembly) authorized the total Budget for the year 2018 to be One Trillion, Forty Six Billion, One Hundred and Twenty One Million, One Hundred and Eighty-One Thousand, Six Hundred and Eighty Naira (N1,046,121,181,680.00) comprising the sum of Three Hundred and Forty Seven Billion, Thirty-Eighty Million, Nine Hundred and Thirty-Eight Thousand, Eight-Hundred and Seventy-Two Naira (N347,038,938,872.00) only and Six Hundred and Ninety-Nine Billion, Eighty-Two Million, Two Hundred and Forty-Two Thousand, Eight Hundred and Eighty Naira (N699,082,242,808.00) only as the Recurrent and Capital Expenditures respectively.

“Part of the items authorized by the Bill under Capital Expenditure was: “LAGBUS Public Transport Infrastructure (MEPB); Part financing of 820 buses” which was item 8 under schedule 1- Part C of the Bill,” he said.

He added that having prescribed the manner of withdrawal of funds in sections 3 and 4 of the 2018 Appropriation Law, it was unconstitutional for the House to attach another condition in section 9 of the law for further approval to be sought before incurring any expenditure on the purchase of the buses.

Highlighting the specific breach of his constitutional rights to fair hearing by the House, the former Governor said on August 27, 2019 during proceedings of the Assembly, some lawmakers thoroughly vilified and disparaged him as having purchased the buses without budgetary approval and that the procurement was a waste of public funds, while at the end of the proceedings, the House resolved to constitute an Ad Hoc Committee to probe the procurement.

He said it was surprising that the very lawmakers who contributed actively in vilifying, disparaging and denigrating him constituted the bulk of the members of the Committee, which was a clear derogation of his right to fair hearing.

Ambode added that in continuation of deliberate misrepresentation of facts of the issue, the House falsely claimed that an invitation had been extended to him to appear before the Committee but that he failed to honour the said invitation.

“On Thursday 10th October, 2019, the 4th and 5th Defendants (Mojeed and Yishawu) who are Chairman and member of the Committee respectively set up by the 1st Defendant pursuant to the provisions of section 129 of the Constitution again raised on the floor of the House an allegation that the Claimant (Ambode) was invited to appear before the Committee but that he failed to do so whereupon the 2nd Defendant (Speaker) ruled that a warrant of arrest would be issued against the Claimant if he refuses to appear before the Committee.

“The Claimant states that no letter of invitation was delivered to him before the 4th and 5th Defendants made the false allegation against the Claimant which was widely reported by various national Newspapers in the country.

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