FirstRand locks horns with lawyer

FirstRand Limited has paid about $1 million (R14 million) to a Nigerian lawyer to settle a contractual dispute, but now he says he is taking further action that could see the financial services group lose its operating licence.

Speaking from Lagos this week, lawyer Victor Obaika said he had accepted the settlement offer but also insists he is “taking action” against FirstRand, which he accuses of breaching South Africa’s laws regarding repatriation of foreign currency.

The initial contractual dispute was first reported by ANA on September 22, 2017. Obaika was suing FirstRand for R1.3 billion at the time. At the time, he alleged that FirstRand, which also operates in Nigeria, violated trademark and intellectual property rights.

He subsequently filed papers in the Federal High Court in Lagos in an effort to compel the South African banker to pay outstanding professional legal fees and damages related to the alleged trademark-intellectual property violations.

Obaika sued FirstRand and its affiliates for $100 million.

Asked at the time if the group was aware of the lawsuit, Rand Merchant Bank (RMB), a division of FirstRand, said: “Rand Merchant Bank confirms that proceedings have been instituted by Mr Obaika against various entities and individuals.

“Those proceedings will be defended. We have been advised that the proceedings are factually and legally bereft of merit.”

Papers filed at the Lagos court indicate that Obaika was suing 24 defendants, including FirstRand, FNB, RMB, Wesbank, Ashburton Investments, RMB Corvest, RMB Nigeria, RMB Westport, Global Outdoor Systems Nigeria Limited and Global Outdoor Advertising Nigeria Limited.

However, this week he revealed that FirstRand had since settled out of court and paid him “compensation” of over $1 million.