Daily Independent (Lagos)
Tunde Opeseitan
19 October 2009
Lagos — A Federal High Court in Lagos has restrained the state government and Multi-Purpose Infrastructural Development Company (MIDC) from moving the vessel containing the Sunburn Yatch Hotel out of Lagos pending the determination of a suit filed by Loneseed Nigeria.
Justice Binta Murtala-Nyako made the order while ruling on an experte application brought by Loneseed, which sued the Attorney General and Justice Commissioner, Supo Sasore Tourism Commissioner, Tokunbo Afikuyomi and MIDC alleging breach of agreement on the N4.5 billion Yacht Hotel deal.
Loneseed averred that Diamond Capital and Financial Markets Limited (a subsidiary of Diamond Bank) acquired 99.9 per cent of its shares to buy Yatch Hotel, and that Ugo Otuonye owns the remaining one per cent.
According to the plaintiff, sometime in 2007, MIDC approached Diamond Bank to fund the acquisition of the floating hotel, and the initial concept was that MIDC would work with the state government to participate in the project by contributing equity in the form of infrastructure and land.
It added that the state government, through the Finance Commissioner, also conveyed the same understanding by a letter dated January 25, 2009.
A Memorandum of Understanding (MoU) was said to have been drafted but is yet to be executed by either party, while Diamond Bank referred MIDC to Diamond Capital to work towards the successful completion of the project.
The bank was also said to have funded the cost of the vessel with about N4,583,630,750 by a loan granted Loneseed with the equity contribution of Diamond Capital in the company.
However, Loneseed complained that when on July 15, 2009 it visited the vessel with officials of the National Maritime Authority (NMA) for inspection - a requirement for registration - they could not gain access to the vessel until Afikuyomi arrived.
Loneseed alleged that Afikuyomi's personal role conflicted with his official duties, accusing him of "purporting to act on behalf of the state government without due authorisation from the government and has exerted control over MIDC Limited."
The plaintiff alleged that Afikuyomi deliberately refused to permit workmen to renovate the vessel since her arrival in Nigerian waters in November last year, and that Yatch Hotel would have begun operation seven months ago but for the "intrusion of Afikuyomi and MIDC, who have made it impossible for the plaintiff to access the vessel."
Loneseed is seeking a declaration that it is the lawful owner of the vessel and that Afikuyomi is guilty of unlawful and wrongful acts by the virtue of his role in the transaction.
It also wants an injunction retraining the defendants from parading themselves as owners, representatives or part owners of Loneseed, and from interfering with the propriety interest and rights of Loneseed in the vessel.
However, Afikuyomi and MIDC countered that the court lacks jurisdiction to entertain the suit and that Loneseed lacks the locus standi to institute it.
They urged the court to discharge the order restraining them from moving the vessel out of Lagos, because the order was obtained through suppression and non-disclosure of facts.
The case was adjourned to November 3 for hearing.
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