AMCON N11bn Debt: Olofa fights back

By Kayode Adeoti

The Olofa of Offa, Oba Muftau Gbadamosi Esuwoye II has vowed to sue Asset Management Corporation of Nigeria (AMCON) and some media outfits for defamation of character.
This is coming on the heels of law suit instituted by AMCON over the N11bn loan facility the monarch reportedly obtained from the bank to run his businesses and the report published in some medium on the issue.
Oba Gbadamosi was said to have obtained the loan through his two companies, Zarm Poultry & Feeds Mills Limited and Zarm Stores Limited.
In a bid to recover the said fund, AMCON however dragged the first class monarch before a Federal High Court sitting in Lagos, but he was left off the hook as the matter was determined in his favour two weeks ago.
Oba Gbadamosi’s counsel, Lawal Rabana (SAN) who spoke with this medium on the matter after the court session then confirmed that the suit had been completed and the case dismissed.
According to him, “the matter is dismissed and closed forever. The money quoted by AMCON was just a cheap blackmail and scandalous.”
However in a message sent to our reporter at the weekend, Oba Gbadamosi, through one of his counsel, Wahab Shittu expressed resentment over the development.
Shittu stated his readiness to join forces with 99 lawyers to sue AMCON and some media outfits, who reported the matter.
Shittu described reportage of some media outfits as libellous adding that it is a calculated attempt to bring Oba Gbadamosi and his stool to disrepute and to further cause disaffection against him.
The message reads in part; “I, Barrister Shittu with 99 lawyers are ready to sue AMCOM and other libellous social media outfits for defamation of character and the calculated attempt to bring the Olofa Gbadamosi’s stool to disrepute and cause disaffection against him, his family and business.
“When is it a crime to support business with bank facilities? Surely, the whole law suit against Olofa by AMCON is a smokescreen and has some sinister motive. It shows the desperate attempt by the enemies of Offa to bring us down.
“God will not allow them; we are ready to fight for our good name.”
Recall that in the suit filed by the counsel of AMCON, Osayaba Omorodion Giwa Osagie, it was alleged that pursuant to its enabling act, AMCON sometimes in 2012, purchased certain eligible bank assets of the former Oceanic Bank in the sum of N1,859,654,737.00 and N4,586,369,001.47 respectively.
It further alleged that as of April, 2017, Zarm Poultry & Feeds Mills were indebted to AMCON to the tune of N3,027,486,610.59 being the unpaid principal and interest on a term loan facility of N2.3billion that was given to the company sometimes in 2006 by the former Oceanic Bank to finance capital expenditure on its farm at Odonla, Ikorodu, Lagos.
The term loan was secured by the execution of a deed debenture over fixed and floating assets of the company, which included the execution of a deed legal mortgage over Plots 407 and 408, Odonla industrial Estate, Opposite LSDPC Housing Estate Odonla, Ikorodu Lagos.
As at 8 April, 2017, Zarm Store Limited was also alleged to be indebted to AMCON to the tune of N8,253,512,349.19 being the unpaid principal and interests on a restructured term loan facility of N3,055,764,554.71 granted to Zarm Stores Limited sometime in 2009.
The loan was subsequently further restructured to N4,462,589,667.33 to accommodate the debts arising from unpaid facilities granted Zarm Stores Limited’s other affiliates besides the one of Zarm Poultry and Feeds Mills Limited.
The further restructured term loan was secured by a legal mortgage over a piece of land measuring 818.058 square meters, being Block 1B Osborne Phase 1, Lagos and the personal guarantee of the monarch who is the Chief Executive Officer and also the majority subscriber to the shares of the two companies.
It was further alleged that the defendants had not made any payments since the debts were assigned to AMCON, in spite of several discussions and negotiations between the parties.
The period stipulated for the repayment of the banking facilities had since elapsed.
It was also gathered that the AMCON is praying for a declaration that Zarm Poultry and Feeds Mills Limited “ is indebted to it in the sum of N3,027,486,610.59 with interest thereon at the rate of 21% per annum from April 9, 2017 until judgment and thereafter at the rate of 10% until total liquidation, among other prayers.”