The First City Monument Bank (FCMB) has sued the Kogi State Government over alleged breach of contractual agreement that has caused bank to lose over N700 million in loans to workers.

The suit which was filed before the Federal High Court Loyola has Kogi State Government, the state Attorney General, Local Government Service Commission, Zenith Bank and Access Bank PLC as defendants, The plaintiff in the suit faulted the action of the state government in removing salary accounts of its workers from the FCMB.

The bank held that the state government erred in relocatinh the salary accounts to the 4th and 5th defendants in spite of undertakings it entered with the FCMB for domiciliation of the salary accounts of beneficiaries of its consumer loan facilities.FCMB

 According to the bank, accounts of the beneficiaries of the loans, in line with the undertakings, were to be “irrevocably and unconditionally domiciled with the plaintiff” until the said loan facilities were fully amortized or liquidated with accrued interests.” In the Writ of Summons issued by the plaintiff’s solicitor, Yemi Mohammed, the FCMB sought six reliefs of the court including “A declaration that the 1st defendant and her agents were bound by their several undertakings, commitments and assurances.” The undertakings bothered on maintenance or domiciliation of the salary accounts of the loan beneficiaries with the bank until the loans amounting to over N700 million were fully amortized or liquidated.

It also sought a declaration that the action of the 1st defendant was a violation of the 1st defendant’s obligation to the plaintiff and therefore, illegal, wrongful, unconscionable, over-reaching and a deliberate attempt to unjustly deprive the plaintiff of recovering the loans. The plaintiff also sought an order of perpetual injunction restraining the state government and its agents from continuing with the action with a further order restraining the 4th and 5th defendants from continuing to open salary accounts for the civil and public servants.

When the case came up on Friday, Counsel to the 4th defendant, (Zenith Bank PLC), John Erame filed a motion supported by a four-paragraph affidavit seeking extension of time to enable counsels in the suit file their papers.The trial judge, Justice Phoebe Ayua granted the application and adjourned the case to October 5