Tunde Folawiyo, a billionaire businessman, has petitioned the Federal High Court in Lagos for a stay of execution after a judge ordered the Asset Management Company of Nigeria to seize his properties.
In a suit filed in court, Mr Folawiyo asked the judge to stop AMCON from enforcing the judge’s order pending the outcome of his suit.
Lewis Allagoa, a federal high court judge in Lagos, ordered AMCON to seize some of Mr Folawiyo’s assets on March 24 in connection with an alleged N727.9 million debt.
AMCON had requested a court order freezing Mr Folawiyo’s accounts in 18 banks as well as the interim forfeiture of his property in Lekki Phase 1, Lagos.
Mr Folawiyo is said to have helped Compagnie Generale de Logistique, of which he is a director, obtain a N522.4 million loan from Spring Bank.
In a 2017 lawsuit between AMCON and Compagnie Generale De Logistique & Others, the judge granted the former an ex parte order.
The interest paid on the N522.4 million brings the total loan amount to N727.9 million.
Mr Folawiyo contended that he was not a party to the 2017 suit and thus was not served with the judgment.
He also claimed that, at the time of the suit, he was not a director of Compagnie Generale De Logistique and was not involved in the loan transaction with Spring Bank.
As a result, Mr Folawiyo claims he is not a “debtor” within the meaning of Section 61 of the AMCON Act, which would justify the interim forfeiture of his assets and freezing of his bank accounts as a result of the 2017 judgment.
He contended that a combined reading of Sections 49(2), 50(2), and 61 of the AMCON Act would reveal that only current directors of a company fall within the definition of “debtor,” warranting the freezing of their assets or accounts.
The businessman accused AMCON of failing to disclose his position in Compagnie Generale De Logistique, the suit’s main judgment debtor.
He expressed concern about the order’s impact on his employees and the reputation of the three-generational family business he has worked hard to maintain and grow over the years.