Follow Us on Google
By Onyedika Agbedo
Ex-staff of Nigerian banks that failed the 2005 banking sector consolidation test have explained they decided to sue the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) over non-payment of their gratuities estimated at N9.8 billion after an endless wait for the institutions to pay their terminal benefits after throwing them into the labour market with the policy induced liquidation.
The ex-bankers, who were retrenched 11 years ago following the consolidation exercise, said they had explored all avenues to ensure an amicable settlement of the dispute before seeking the intervention of the court.
The former bankers had filed a suit at the National Industrial Court, Lagos Judicial Division, through the Registered Trustees of the Association of Ex-Staff of Non-Consolidated Banks of Nigeria and all ex-staff of eight banks not consolidated in the banks consolidation exercise.
Also joined in the suit are Ecobank Nigeria Plc, UBA Plc, Skye Bank Plc and Zenith Bank Plc. Justifying the need for the action, the chairman of the group, Magnus Maduka, while addressing journalists said it was disheartening to note that over 100 members of the group had died untimely death as a result of the inhuman conditions they were subjected to these past years.
“We were trying to explore the possibility of not going to court all these past years believing that the CBN and NDIC and the banks concerned would do the needful. But it does appear that we may have to wait forever and that is why we decided to take the matter before the court to get justice for all the affected parties,” Maduka stressed
At the inaugural hearing of the suit held at Court 2, presided over by Justice Benedict Kanyip recently, the claimants’ counsel recalled that following the N25 billion recapitalisation benchmark set by the apex for banks under the ‘Guidelines and Incentives on Consolidation in the Banking Industry,’ the CBN had assured that those whose employment would be jeopardised as a consequence of the exercise would be paid their due entitlements in line with industry standards and even provided with soft loans to set up their small and medium scale enterprises (SMEs).
The claimants’ lawyer further averred that even the Act had imposed a duty upon the NDIC to ensure that acquiring banks take up the deposits and other liabilities of the acquired banks, including the terminal benefits of ex-staff.
Regrettably, the acquiring banks implemented the Act in breach by “cherry picking” and leaving out both the liabilities and staff benefits unattended to.
Consequently, the claimants, according to Omotilewa, have had to suffer lots of deprivations including loss of lives a result of the refusal of the defendants to redeem their promise to pay compensation due to them.
“We’re asking for the terminal benefits of the claimants simply because it is part of their fundamental human rights which should be enforced,” he said.
Justice Kanyip while taking the claimants pleas, however, observed that the court was not properly served.
Specifically, Justice Kanyip, said the court had no jurisdiction to decide the case because the umbrella body under which they were filing the class action was strictly within the purview of the Corporate and Allied Matters Act (CAMA), which is clearly at variance with the Act setting up the NIS Act.
Speaking further, Kanyip said the court could only take the claimants’ pleas on individual basis and not as a group.
He, therefore, adjourned the case to April 26, 2017, to enable the claimants amend the suit and file it appropriately.
