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Shareholders Sue CBN Over Sale Of Bank PHB

Shareholders Sue CBN Over Sale Of Bank PHB

Some shareholders of the defunct Bank PHB Plc have headed for a Federal High Court in Lagos claiming that they were not duly compensated when the bank’s assets were transferred to Keystone Bank Plc.

Joined as defendants in the suit, marked FHC/L/CS/1273/11, are the Central Bank of Nigeria, Keystone Bank Limited and the Attorney General of the Federation.

Others are the Nigeria Deposit Insurance Corporation and the Asset Management Corporation of Nigeria.

The plaintiffs, through their counsel, Chief Anthony Idigbe (SAN), are demanding N38.6bn from the defendants being “fair compensation” to them for the value of their investment in the defunct Bank PHB Plc.

They are also praying the court to award N20bn as damages against the defendants in their favour to cover for the loss of value on their investments in the defunct bank.

They further sought an order of the court setting aside what they described as “unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB.”

The plaintiffs, who sued for themselves and on behalf of other shareholders, are Benedicta Oyiana, Ifeyinwa Oyiana, Chioma Onyiana, Okoli Dumebi and Felix Onyiana.

Others are Pius Okonji, Okonji Obiageli, Ndiwa Uwaonye and Allwell Brown.

In their papers before the court, they contested the validity of a letter dated August 5, 2011, written by the NDIC to the Managing Director of Bank PHB, informing him that the bank’s assets and liabilities had been transferred to Keystone Bank.

According to them, such a transfer amounted to an illegality when the NDIC did not make any arrangement for their compensation prior to the move.

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