United Bank for Africa (UBA) Plc has asked the Federal High Court in Lagos to commit nine individuals linked to Western Metal Products Company (WEMPCO) to prison over alleged disobedience of a court order in a dispute involving N61.45 billion in outstanding debt.
The bank alleges that the individuals forcibly removed a court-appointed receiver-manager from WEMPCO’s steel plant in Ogun State, despite an order empowering him to take control of specified assets connected to the debt recovery process.
The committal application, published in The Nation on October 27 under an order permitting service by newspaper, accuses the respondents of “wilful, deliberate and orchestrated disobedience” of a court order issued on April 2.
UBA is asking the court to commit them to prison until they comply with the order.
The allegations have not been tested in court, and WEMPCO’s response was not immediately available.
Court Freezes N61.45b Linked to WEMPCO
The dispute stems from an April 2 ruling by Justice Akintayo Aluko, who ordered the freezing of up to N61.45 billion in funds linked to WEMPCO and associated defendants across 27 banks and fintech platforms.
The judge also appointed Romeo Ese Michael as receiver-manager over assets not already pledged under a 2019 credit agreement.
Under the order, financial institutions, including Moniepoint, OPay and Kuda, were directed to disclose and preserve balances belonging to the defendants. The receiver’s powers also extend to two Wärtsilä power generators, wherever they may be located.
UBA’s affidavit alleges that after court bailiffs handed over the Magboro/Ibafo steel plant, the respondents brought in thugs, broke the receiver’s locks and threatened his staff with “serious injury.”
The bank further alleges that the respondents continued operating the business and diverting funds while the receiver was unable to exercise control over the facility.
The nine individuals named in the committal 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.
Taiwo Alli is the managing director of Nigerian Enamelware Company Plc, a company listed on the Nigerian Exchange and among the 17 corporate defendants in the wider dispute. Robert Tung is also a director of the company.
Other defendants include Lagos Oriental Hotel Ltd., United Rolling Mills Ltd., Wempco Steel Mill Co. and Prime Nigeria Tiles Co.
UBA, WEMPCO Attempted Settlement
Court documents indicate that the parties explored a possible settlement before the latest escalation.
On June 22, WEMPCO’s lawyers at SimmonsCooper Partners, led by Senior Advocate of Nigeria Dapo Akinosun, requested an urgent meeting with UBA. They proposed an interim standstill, a joint reconciliation of the accounts and a structured repayment arrangement.
The dispute adds to UBA’s efforts to recover substantial loans from companies linked to major industrial groups.
The case follows an earlier debt recovery action in which the bank secured a judgment against Stallion Group using the same receiver-manager, according to MoneyCentral, which first reported the WEMPCO action on October 16.
