Court Rules Bharti Airtel Purchase Of Airtel Nigeria Shares As Disobedience Of Court Order

The Federal High Court in Lagos has ruled that Bharti Airtel’s
purchase of Airtel Nigeria shares from Ecobank in 2018 was
contemptuous and amounted to flagrant disobedience of a court
order.

The said shares have been the main issue in the protracted
dispute between Dr Oba Otudeko and O & O Networks Limited (a
Special Purpose Vehicle owned by Ecobank Transnational
Incorporated) and were indeed subject to an order of the court in
2015 that prohibited parties from transferring or selling the
shares.

However, in deliberate disregard of the order, Bharti Airtel
purchased the shares from O & O and being previously aware of
the dispute and court orders on these shares, extracted an
indemnity from O & O against exposure to any liability.

In the ruling, the Federal High Court also ordered O & O to
pay the sum of N22.5Billion, being the proceeds of the wrongful
sale of the shares into the Court’s account.

It would be recalled that Dr Oba Otudeko and Broad
Communications Ltd, had instituted a legal action in 2006
challenging Delta State Government’s acquisition of O & O
network’s shares in Airtel Networks (formerly Econet Wireless
Nigeria).

From the facts of the case, Broad Communication’s main
contention is that the transaction was unlawful, and a breach of
the Shareholders’ Agreement executed by the shareholders of Airtel
Networks.

According to the said Shareholder’s Agreement, the shares should
have been offered to the existing shareholders first, before they
were sold to Delta State Government given the right of “First
Refusal” (pre-emptive right).

Following the institution of the suit, O & O Networks
purportedly bought back the disputed shares from Delta State
Government. Beneficial ownership of the Airtel shares was
subsequently transferred to Oceanic Bank, which is now owned by
Ecobank Transnational Incorporated.

In 2015, following the receipt of information that the disputed
shares were being offered for sale, Broad Communications published
a “Buyer Beware” notice on the disputed shares. In February 2015,
Justice Tsoho of the Federal High Court, Lagos also gave an order
in favour of Broad Communications restraining all parties from
dealing or tampering with the shares in the custody of Ecobank.

The recent ruling seeks to return parties to the status quo and
underscores the sanctity of court orders which must be obeyed.
Indeed, the judge in her ruling stated that “no matter how stupid
the order of the court is, it must be obeyed until set aside by the
court or a superior court…”

The trial now stands adjourned to the 28th of May, 2019.

2019 Elections: Nigerian Army Constitutes Panel to
Investigate Misconduct of Personnel

As a way of ensuring that NA troops deployed for election
security duties during the 2019 General Elections conducted
themselves within laid down Rules of Engagement and the Code of
Conduct, the NA has set up a 9-member investigative committee,
headed by Maj Gen TA Gagariga with Brig Gen JM Ali, Brig Gen GO
Adeshina, Brig Gen MA Obari, Col AT Bitiyong, Col A Tanko and Col
WA Bakare as members and Lt Col PAJ Ebuk as Secretary to
investigate all allegations of misconduct against the NA during the
just concluded general elections. The committee is to submit its
report not later than 31st of March, 2019.

The committee, which has already commenced action, was
inaugurated by the Chief of Administration (Army), Major General
KAY Isiyaku on behalf of the Chief of Army Staff (COAS ) Lieutenant
General Tukur Yusuf Buratai and admonished to carry out their
duties objectively, fairly and transparently in line with its Terms
of Reference.

The committee’s Terms of Reference centered on thoroughly
investigating the activities, actions and/or inactions of NA
Personnel in all the States that alleged one infraction/wrong doing
or the other.

The Committee is also to collate and thoroughly analyze all
reports to determine the veracity of the allegations including the
alleged assassination attempt on Rivers State Governor and the
circumstances that led to the shooting to death of Lt Kurmi as well
as that leading to serious injuries to an officer and some soldiers
in the State.

The Committee is further mandated to visit all States where
issues have been raised about the conduct of NA during and after
the elections and also interact with Civil Society Organizations,
sister security agencies and State Governors with claims against
the Army.

It would be recalled that the COAS, Lt Gen TY Buratai has on
many fora, consistently (both in words and actions), soundly
indicated that, under his watch, NA personnel must remain
apolitical, respect human rights and abide by the rule of law in
all its official engagements within or outside Nigeria and in or
out of conflict situation. NA troops were deployed for the
elections under Operation SAFE CONDUCT that was set up to provide
support to the NP and other security agencies to ensure hitch free
and successful elections in the country.

The Chairman of the committee, Major General TA Gagariga has
assured the COAS and all Nigerians of the commitee’s commitment,
resolve and determination to objectively and professionally address
the major issues as contained in the Committee’s Terms of
Reference.

SAGIR MUSA
Colonel
Acting Director Army Public Relations