An order directing Ecobank Nigeria Limited to pay the outstanding sum of N1,146,470,393,.62 being the total of their savings in the Staff Savings Investment Trust Fund, SSITF, scheme contributed by 1742 ex-employees of Oceanic Bank made up of those transferred to Ecobank upon the merger of the two banks through the merger of February 15, 2012 and those whose employment was determined before or upon the said merger which remains unpaid till date.
The claimants, in their statement of claim, said the amount outstanding as their contributions to the SSITF scheme, which the defendant ( Ecobank) has refused to pay to date, stands at N926,901,065,60.
Claimants also asked the court for an order directing Ecobank to pay the sum of N159,710,523.51, the total sum due as gratuities to 48 of the claimants, and another sum of N59,858,80451 being the short payments of severance or redundancy paid by the defendant to 74 of them.
The court was further asked to grant an order directing Ecobank to pay 22 per cent interest per annum on the sums above of money being claimed from February 15, 2012, until judgment and after that at the rate of 12 per cent per annum until the liquidation of the judgement sum.
However, Ecobank, through its lawyer, Sunday Arubike, filed a statement of defence to the suit and a counter-claim.
Ecobank, in its counter-claim, demanded the sum of N967,529,765.38 being the excess of severance and or redundancy benefits paid to the ex-staff of Oceanic Bank, that is, the claimants at 24 per cent interest from October 30, 2014, until any judgment is delivered in its favour. And the interest of 10 per cent until the judgment sum is fully liquidated.
The bank also counter-claims for the sum of N225,724,076,.78 being the excess gratuities and entitlements paid to the representative members by Ecobank Bank, another sum of N1,541,491,955.03 being the sum outstanding and payable as of October 30, 2014, on credit facility granted to the representative members of the ex-staff.
The defendant further counter-claim in the sum of N41,640,000,000 being the amount due and outstanding as of December 31, 2010, on the Term Loan of N25,054,481,701.00 granted by Oceanic Bank (now Ecobank) to the former employees through the Board of Trustee of the Trust Fund which facility was accepted and fully utilised by the claimants for the purchase of shares of blue- chip companies and which sum the ex- staff (claimants) have failed, neglected or refused to repay till date despite repeated demands.
The summary of the claimants’ case, according to the court, was that before the merger of Oceanic Bank and Ecobank on December 30, 2011, there was in existence in Oceanic Bank the SSITF introduced by Oceanic Bank in 2004 to encourage its staff to save part of their earnings towards further financial commitments and assist staff in planning for their retirement.
It was further stated that the initial minimum contribution of each employee to the SSITF scheme was N6000 per month, which was, in August 2005, increased to a minimum of N14,000 per month.
Subsequently, in 2008, the level of contributions to the staff Fund was further reviewed upward by the bank, and the review was based on the level of the staff involved, ranging from N20,000 to N50,000.
It was also stated that sometime in May 2010, Oceanic Bank discontinued the deduction of the SSITF from its employees’ monthly salaries, and every staff whose appointment was terminated or resigned from the bank was duly paid their SSITF.
The claimants further said that by a letter of February 13, 2012, Ecobank advised a total number of 788 employees of Oceanic Bank whose employment has been transferred to the bank (Ecobank) consequent upon the merger, that effective from Wednesday, February 15, 2012, such employees’ contract of employments with Ecobank has been terminated.
The claimant stated that 697 of those whose employments were terminated are among the 788. these 697, according to the plaintiffs, have unpaid claims, including non-payment of their SSITF contributions, among others.
It was also contended by the claimants that the calculations and payments of final entitlement to 706 out of the 788 employees whose employment was determined as of February 15, 2012, or resigned as an option under the merger with Ecobank were flagrantly violated.
After analysing the facts of the case as submitted by counsel to both parties, Mr Nwabu .A.Okoye for claimants and S. C. Arubike for Ecobank, Justice R.A Gwandu dismissed the defence and counter-claim of Ecobank Bank on the ground that the bank failed to put credible evidence before the court to support it’s counter-claim.
Justice Gwandu, in his judgement, held that upon the consummation of the merger, Ecobank had fully acquired all the assets and liabilities of Oceanic Bank and could not repudiate or push some of the liabilities on its employees, more so when it was the bank that was in control of the SSITF scheme.
The trial judge further held that Ecobank can not deny contributions to the SSITF or show evidence that the claimants were paid the sum they claim. ” I, therefore, hold that the claimants have proved their case and are entitled to the payment of the sum of N926,901,065.60 being the total in the account of the Staff Savings Investment Trust Fund being contributions of 1742 employees Oceanic Bank made up of those transferred to Ecobank upon the merger and whose contract of employment were determined on February 15, 2012, and those whose employment otherwise were determined before or upon the merger.
On the issue of unpaid gratuities, Justice Gwandu said, “I, therefore, hold that the defendant is liable to the claimants in the sum of N159,710,523.51, the total sum due based on years of service of the employees.
The judge, however, refused the plaintiffs’ claim of N59,858,804.51, being the total sum of short payment of severance or redundancy package Ecobank pays them to 74 of the claimants.
Justice Gwandu said it would be unfair for the court to hold Ecobank responsible for any lapses that may have occurred under the agreement brokered by ASSBIFI since some of the ex-staff benefitted under the contract and are happy under the same deal more than the intervention of ASSBIFI had the consent of the ex-staff.
Justice Gwandu granted 10 per cent interest on the judgment sum from 30 days after the judgment was delivered till it was fully liquidated.
