United Bank for Africa (UBA) Plc has intensified efforts to recover N61.45 billion it says is owed by Western Metal Products Co. (WEMPCO), asking a Federal High Court in Lagos to commit nine individuals linked to the industrial group to prison.
The bank alleges that the respondents disobeyed an April 2 court order by preventing a court-appointed receiver-manager from taking control of a WEMPCO steel plant in Ogun State.
Also read: Court rules in UBA’s favour in Stallion debt dispute
UBA’s committal application, published in The Nation on Tuesday, October 27, was filed under an order permitting service of the court process by newspaper.
The bank accused the respondents of “wilful, deliberate and orchestrated disobedience” of the court’s order and asked that they remain in custody until they comply with its directives.
The allegations contained in the court papers have not been tested, while WEMPCO’s response was not immediately available.
The individuals named in the application are Lewis Shui Noor Tung, Phillip Shui Che Tung, Alhaji M.A. Ola Yusuf, Tung Lawrence Blake, Alli Aare Hadji Tokunbo, Paul Shui Po Tung, Robert Tung, CL Ip and Taiwo Alli.
They are all listed at 18 Wempco Road, Ogba, Ikeja.
UBA alleged that after court bailiffs handed over the Magboro/Ibafo plant to the receiver, Romeo Ese Michael, the respondents allegedly brought in thugs, broke the receiver’s locks and threatened his staff with serious injury.
The bank further alleged that the respondents continued operating the business and diverting funds despite the court order.
UBA is seeking to have the alleged disobedience addressed through committal proceedings, which could result in imprisonment if the court finds the respondents in contempt and makes the requested order.
On April 2, Justice Akintayo Aluko of the Federal High Court ordered the freezing of up to N61,445,695,993.76 belonging to WEMPCO-linked defendants across 27 banks and fintech platforms.
The judge also appointed Michael as receiver-manager over assets that were not already pledged under a 2019 credit agreement.
The order directed financial institutions, including Moniepoint, OPay and Kuda, to disclose and hold balances belonging to the affected defendants.
The receiver’s powers also extend to two Wärtsilä power generators, wherever they may be found.
Among the other defendants in the wider case are Lagos Oriental Hotel Ltd., United Rolling Mills Ltd., Wempco Steel Mill Co. and Prime Nigeria Tiles Co.
Alli is the managing director of Nigerian Enamelware Co. Plc, a company listed on the Nigerian Exchange, while Robert Tung is a member of its board. Nigerian Enamelware is among the 17 defendant companies in the proceedings.
Court documents also indicate that the parties attempted to resolve the dispute outside further litigation.
On June 22, WEMPCO’s lawyers at SimmonsCooper Partners, led by Senior Advocate of Nigeria Dapo Akinosun, reportedly requested an urgent meeting with UBA.
The lawyers proposed an interim standstill, a joint reconciliation of accounts and a structured repayment arrangement.
UBA’s counsel, Senior Advocate of Nigeria Temilolu Adamolekun, responded the following day and questioned how the company could seek negotiations while, according to the bank, allegedly using physical force and resorting to self-help.
The parties nevertheless met at UBA’s Marina head office on June 26 and agreed to conduct a joint inspection of the Magboro facility on July 2.
According to the bank’s affidavit, WEMPCO and its lawyers failed to attend the scheduled inspection and subsequently became unreachable.
UBA said the plant has remained under the respondents’ control since then.
The case highlights the difficulties that can arise when court-appointed receivers attempt to take control of assets involved in major commercial debt disputes.
A committal order against the individuals named in UBA’s application could further test the effectiveness of court receivership orders and the consequences of alleged non-compliance.
WEMPCO was founded by K.F. Tung, who arrived in Nigeria in 1967 and later built the industrial group into a major manufacturing business.
Also read: Court rules in UBA’s favour in Stallion debt dispute
The latest application represents another significant step in UBA’s attempt to recover the N61.45 billion it says is owed by WEMPCO-linked entities.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
