Popular Nigeria Bank Set to Shut Over Unpaid Debt
The National Industrial Court of Nigeria in Makurdi, Benue State, has issued a garnishee order instructing the closure of Heritage Bank Limited. This action comes as a result of the bank’s failure to remit over N710 million to Shehu Mudi and 656 other entities.
In Lawsuit Number MCN/MKD/07m/202, Justice (Dr) I.J. Essien, the presiding judge, has instructed Inspector General of Police Olukayode Egbetokun to ensure police security for the court’s sheriffs in executing its directive.
The court has maintained that the bank’s branches must remain shut until it fully adheres to the directives outlined in the garnishee order. Also in the lawsuit are the Adamawa State Government, the Ministry of Education in Adamawa State, the Post-Primary School Management Board in Adamawa State, and the Attorney General and Commissioner for Justice in Adamawa State.
Justice Essien emphasized that Heritage Bank had become an obstruction to the due process of justice. He recalled that the court made an Order Absolute in Exhibit A, stipulating that the garnishee should remit the judgment amount sought within three days. This directive was further validated by the Court of Appeal and confirmed in Exhibit D.
The judge ruled that despite the Garnishee undertaking to pay the judgment sum, Heritage Bank should comply with the Court of Appeal’s order to pay the sum of N710,969,140.19 within three days.
Amid growing concerns voiced by the bank’s customers regarding Heritage Bank’s financial stability, the bank has asserted that everything is in order. Ozena Utulu, the Corporate Communication Manager, communicated that the bank had initiated plans to ensure its long-term viability. The statement also clarified reports of a reduction in the bank’s workforce.
Responding to concerns about its financial health, the Central Bank of Nigeria (CBN) reassured the public that Heritage Bank was not undergoing financial distress during its most recent Monetary Policy Committee meeting.
In related news, the executive leadership of Heritage Bank Plc refuted allegations of fund misappropriation made against their staff members. The management labeled these assertions as “wrong and defamatory.” The bank’s management addressed the unverified reports and stated that no fund diversion involving its staff members has occurred.
