LAWYER TO TAKE FURTHER ACTION
FIRSTRAND has paid $1 million (R14.04m) to a Nigerian lawyer to settle a contractual dispute, but now the advocate says he is taking further action that could see the financial services provider lose its operating licence. Speaking from Lagos, lawyer Victor Obaika this week said he had accepted the settlement offer of just more than $1m related to an earlier contractual dispute. But Obaika 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 the African News Agency on September 22, 2017. Obaika was suing FirstRand for R1.3 billion at the time. At the time, Obaika 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, Nigeria, in an effort to compel the South African financial services group to pay outstanding professional legal fees and damages related to the alleged trademark/intellectual property violations. Obaika sued FirstRand and its affiliates for a total of $100m. Asked at the time if the group was aware of the lawsuit, Rand Merchant Bank (RMB), a division of FirstRand Bank, responded saying: “RMB 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 Federal High Court indicate that Obaika was suing 24 defendants, including FirstRand Group, First National Bank, RMB, Wesbank, Ashburton Investments, RMB Corvest, RMB Nigeria, RMB Westport, Global Outdoor Systems Nigeria and Global Outdoor Advertising Nigeria. However, this week Obaika revealed that FirstRand had since settled out of court and paid him “compensation” of more than $1m. In another turn of events, the prominent Nigerian attorney is now accusing FirstRand of breaching SA regulations when it moved the settlement money to his bank account overseas. FirstRand denies the allegations and has since appointed Nigerian law firm Banwo & Ighodalo to defend any possible actions Obaika might initiate. In a recent letter to Obaika, Nigerian lawyer Abimbola Akeredolu confirms that Banwo & Ighodalo acts for FirstRand. But Obaika said the Nigerian law firm cannot act on the matter, because “jurisdiction was set down as South Africa for matters emanating from the settlement, she (Akeredolu) therefore has no jurisdiction whatsoever”. Actions against FirstRand, that Obaika said could result in the banking group losing its licence, would continue. At the time of publication, FirstRand had not responded to queries on the matter sent to them by ANA. | African News Agency (ANA)