AMCON property confiscation: Folawiyo seeks injunction, dissociates self from defaulting firm

Billionaire businessman, Mr Tunde Folawiyo, has filed an exparte motion before a Federal High Court in Lagos seeking a stay of execution after a judge ordered the Nigerian Asset Management Company to seize property that belongs to him The Trumpet gathered.

Mr Folawiyo, in a suit no: FHC/L/CS/799/2020, is seeking an order of stay of execution of the ex-parte orders made against him on March 24, 2022, pending the hearing and determination of his Motion on Notice seeking to set aside the ex parte orders. Lewis Allagoa, a judge in the federal high court in Lagos, ordered on March 24 that AMCON take over some of Mr Folawiyo’s assets for an alleged debt of N727.9 million.

AMCON had sought an injunction to freeze Mr Folawiyo’s ac- counts in 18 banks and provisional confiscation of his property in Lekki Phase 1, Lagos. Folawiyo was allegedly instrumental in a N522.4 million loan from Spring Bank by Compagnie Generale de Logistique, where he is reportedly a director.

A 2017 lawsuit between AMCON and Compagnie Generale De Logistique & Others led the judge to grant an ex parte order in favour of the former. The interest payable on the N522.4 million amounts to the loan at N727.9 million.

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Folawiyo argued that he was not a party to the 2017 lawsuit and was not served with the judgment. He argued that he was not a director of Compagnie Generale de logistique at the time of the lawsuit and was not involved in the loan transaction with spring bank.

Folawiyo said that, as a result, he is not a “debtor” within the meaning of section 61 of the AMCON act in terms of ensuring the provisional confiscation of his assets and the freezing of his bank accounts because of the ruling of 2017.

He argued that a combined reading of sections 49(2), 50(2) and 61 of the Amcon act would show that only current directors of a company fall within the definition of “debtor” as to justify the freezing of their assets and accounts.

The businessman accused AMCON of not disclosing his status in Compagnie Generale De Logistique, the main debtor of the judgment in the lawsuit. He also said that the ex parte order obtained by AMCON is an abuse of the judicial process, adding that the origin summons he filed is incompetent as it had expired at the time the order was granted.

He complained about the impact the order would have on his employees and the reputation of the three-generation family business that he has worked hard to maintain and grow over the years.

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