Honeywell Group LTD edges Ecobank with Bankers’ Committee Ruling

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The Sub-Committee on Ethics and Professionalism of the Bankers’ Committee has ruled that Honeywell Group does not owe Ecobank Nigeria following Honeywell Group’s payment of the sum of N3.5 billion to Ecobank as full and final settlement on its loan facilities with the bank.

Clearly, the stage is set for intense legal fireworks as Honeywell Group and Ecobank continue to battle over the disputed indebtedness. Suits and counter-suits have been filed by both parties.

But information available to us suggest that Honeywell Group might have edged Ecobank in this battle with the favourable ruling it (Honeywell) got from the Bankers’ Committee saying it was no longer indebted to the bank.

In the ongoing legal tussle, Honeywell Group has recruited the services of renowned legal luminary, Chief Wole Olanipekun, SAN while Mr Kunle Ogunba, SAN is lead counsel to Ecobank.

Honeywell Group however may have a stronger footing given that the matter was already addressed at the Bankers Committee by its Sub-Committee on Ethics and Professionalism, which ruled in favour of Honeywell Group. Honeywell Group had petitioned the Bankers’ Committee because Ecobank failed to honour its part of the agreements reached towards the final payment and resolution of the lingering matter.

From documents obtained, Honeywell Group said it paid a total sum of N3.5 billion to Ecobank following agreement by both parties that the amount be paid by Honeywell Group as full and final settlement on its loan facilities with the bank. As at the time of discussions between Honeywell Group and Ecobank, three (3) Honeywell Group companies – Anchorage Leisures Ltd, Siloam Global Services Ltd and Honeywell Flour Mills Plc – had running loan facilities with Ecobank. Honeywell Group engaged Management of Ecobank Nigeria, led by its Managing Director, on behalf of its companies.

Following the payment, Honeywell Group had written to Ecobank requesting a number of commitments, including: acknowledgement of the payments as full and final settlement on the facilities; a letter of discharge; the release of the securities held against the facilities and an update of the Group’s accounts on the CBN CRMS portal.

But according to Honeywell Group, Ecobank failed to honour any of these requests as earlier agreed by both parties which necessitated its petition to the Bankers’ Committee. The Sub-Committee on Ethics and Professionalism of the Bankers’ Committee addressed the petition and made the following findings: That a valid agreement was consummated between Honeywell and Ecobank for the payment of the sum of N3.5 billion in full and final settlement of Honeywell’s outstanding debt to Ecobank. That Honeywell by the immediate payment of N500 million and the subsequent payment of the balance of N3 billion fulfilled its obligations as agreed with Ecobank; and that Ecobank’s allegation that the Chairman of Honeywell Group was a “related party” to the transaction was wrong.  At the time the transaction was consummated with Oceanic Bank, Dr. Oba Otudeko was not a member of the Board of Oceanic Bank. Furthermore, at the time Ecobank acquired Oceanic Bank Limited (and by implication the Honeywell facility), and commenced discussions with Honeywell, Dr. Oba Otudeko, CFR had left the Board of Ecobank Transnational Incorporated (ETI) as a Director.

The Bankers’ Committee thereafter ratified the findings of the Sub-Committee on Ethics and Professionalism.