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United Bank for Africa (UBA) Plc has asked the Federal High Court in Lagos to jail nine individuals linked to Western Metal Products Company (WEMPCO) over alleged disobedience of a court order in the bank’s bid to recover N61.45 billion in debt.
The bank accused the individuals of forcing a court-appointed receiver-manager out of WEMPCO’s steel plant in Magboro/Ibafo, Ogun State, and asked the court to commit them to prison until they comply with its order.
The committal notice, published in *The Nation* on Tuesday, October 27, alleged “wilful, deliberate and orchestrated disobedience” of an April 2 court order.
Those named in the application 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 application is the latest move in UBA’s efforts to recover the debt from WEMPCO and related companies.
On April 2, Justice Akintayo Aluko ordered the freezing of up to N61.45 billion in funds linked to the defendants across 27 banks and fintech platforms. He also appointed Romeo Ese Michael as receiver-manager over assets not already pledged under a 2019 credit agreement. In its affidavit, UBA alleged that after court bailiffs handed over the Magboro/Ibafo plant to the receiver, the respondents brought in thugs, broke the receiver’s locks and threatened his staff with “serious injury.”
The bank further alleged that the individuals continued operating the business and diverting its funds despite the court order.
The allegations have yet to be tested in court, while WEMPCO’s response was not immediately available.
Court documents also indicate that attempts to settle the dispute outside court failed.
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On June 22, WEMPCO’s lawyers, SimmonsCooper Partners, led by Senior Advocate of Nigeria, Dapo Akinosun, requested an urgent meeting with UBA. They proposed a temporary standstill, a joint reconciliation of accounts and a structured repayment arrangement.
UBA’s lawyer, Senior Advocate of Nigeria, Temilolu Adamolekun, responded the following day, questioning the request for dialogue in the face of what the bank described as physical violence and self-help. He nevertheless agreed to a meeting.
The parties met at UBA’s Marina head office on June 26 and agreed to conduct a joint inspection of the Magboro facility on July 2.
However, UBA alleged that WEMPCO and its lawyers failed to attend the inspection and subsequently stopped communicating with the bank.
The bank maintained that the plant had remained under the respondents’ control since then.
Under the April 2 order, banks and fintech operators, including Moniepoint, OPay and Kuda, were directed to disclose and preserve funds belonging to the defendants. The receiver-manager’s authority also extends to two Wärtsilä power generators, wherever they may be found.
Other companies listed as defendants include Lagos Oriental Hotel Limited, United Rolling Mills Limited, Wempco Steel Mill Company and Prime Nigeria Tiles Company.
The dispute raises questions about the enforcement of court-appointed receiverships and the recovery of debts owed by large industrial groups.
