Honeywell Does Not Owe Ecobank,Says Bankers' Committee

Lagos (Nigeria), December 10, 2015 – The Bankers’ Committee, an umbrella body comprising the Central Bank of Nigeria (CBN), Deposit Money Banks (DMBs) and Discount Houses in Nigeria waded into the dispute between Ecobank and Honeywell Group over repayment of a N3.5 billion facility granted the latter by Ecobank.

From the records before the court, the Bankers’ Committee has ruled that Honeywell Group has fully discharged its obligation with regard to settling the facility granted it by Ecobank. The Committee’s position was contained in a ruling by its Sub-Committee on Ethics and Professionalism which was mandated to investigate the issue.

The records before the court reveal that following a thorough investigation of the matter, the Sub-Committee ruled that the agreement between Honeywell Group and Ecobank to the effect that Honeywell Group pays N3.5 billion as full and final payment of the borrowers’ indebtedness was valid, binding and should be complied with. Honeywell on its part has fulfilled its obligations and Ecobank should likewise fulfill its own obligations. 

A further review of the processes before the court also revealed that the Sub-committee ruled that “based on the legal opinion and clarification sought from the Banking Supervision Department of the Central Bank of Nigeria (CBN), the Chairman of Honeywell Group was not a ‘related party’ to the transactions as he was not a member of the board of Directors of Oceanic Bank at the time the transactions were consummated”. In addition, “As at the time Ecobank Nigeria acquired Oceanic Bank and by implication the Honeywell Group’s loan facility, and commencement of discussions with Ecobank, the chairman, Dr. Oba Otudeko, CFR had left the Board of Ecobank Transnational Incorporated (ETI) as a Director.”

The agreement reached by the parties was indeed consummated by the Ecobank’s Management and is valid and should be complied with.

This is the case before Justice Idris J, in which Honeywell has prayed the court to uphold the ruling of the Bankers’ Committee in its favour, following Ecobank’s refusal to do same.