United Bank for Africa (UBA) has asked Nigeria’s Federal High Court to imprison nine individuals associated with Western Metal Products Company (WEMPCO) for allegedly violating a court order in a ₦61.45 billion ($42 million) debt recovery dispute.
The bank alleges that the individuals forcibly removed a court-appointed receiver-manager from WEMPCO’s steel plant in Ogun State and obstructed efforts to take control of assets covered by the order.
In an application reported by The Nation on October 27, UBA accused the respondents of deliberately disobeying a court directive issued on April 2. It asked the court to imprison them until they comply with the order.
The respondents 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.
The allegations have not been established in court. WEMPCO’s response to the latest application was not immediately available.
The dispute is part of UBA’s efforts to recover ₦61.45 billion that it says WEMPCO and associated companies owe the bank.
In its April 2 ruling, the Federal High Court ordered the freezing of funds belonging to WEMPCO and other defendants across 27 banks and financial technology platforms. It also appointed Romeo Ese Michael as receiver-manager over assets not already pledged under a 2019 credit agreement.
According to an affidavit filed by UBA, court bailiffs initially handed over the Magboro-Ibafo steel plant to the receiver-manager.
The bank alleged that the respondents subsequently brought men to the facility who broke the receiver’s locks and threatened his staff with serious injury.
UBA further alleged that the respondents continued operating the plant and diverting funds despite the court order, preventing the receiver-manager from exercising effective control over the business.
The April 2 order also directed banks and financial technology platforms, including Moniepoint, OPay and Kuda, to disclose and preserve balances belonging to the defendants. The receiver-manager’s mandate also covers two Wärtsilä power generators, wherever they may be located.
The proceedings include several other companies, among them Lagos Oriental Hotel Limited, United Rolling Mills Limited, WEMPCO Steel Mill Company and Prime Nigeria Tiles Company.
Court documents indicate that the parties attempted to negotiate a settlement before UBA filed its latest application.
On June 22, WEMPCO’s lawyers reportedly proposed a temporary standstill, a joint reconciliation of accounts and a structured repayment plan.
UBA’s lawyer agreed to meet the company’s representatives but questioned the proposed negotiations in light of the alleged incident at the steel plant.
The parties met at UBA’s headquarters in Lagos on June 26 and agreed to inspect the facility jointly on July 2.
UBA alleged that WEMPCO and its lawyers failed to attend the inspection and subsequently became unreachable. The bank maintained that the facility remained under the respondents’ control.
The latest application seeks to enforce the existing court order. The court’s decision will depend on its assessment of the alleged violations and whether the legal requirements for imprisonment for contempt have been met.
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