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.
In another turn of events, Obaika, owner of a professional stock car racing team in the US, is now accusing FirstRand of breaching 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 letter dated January 21 to Obaika, Nigerian lawyer Abimbola Akeredolu confirms that Banwo&Ighodalo acts for FirstRand.
“Please be advised that our clients will not hesitate to defend themselves against any legal and/ or administrative actions that may be initiated at your insistence,” wrote Akeredolu.
Obaika responded, saying a Nigerian law firm cannot act on the matter because “jurisdiction was set down as SA for matters emanating from the settlement, she [Akeredolu] therefore has no jurisdiction whatsoever”. – ANA