Polaris Bank Replies As Court Freezes Accounts Over N2 Billion Debt to State Government

Polaris Bank Replies As Court Freezes Accounts Over N2 Billion Debt to State Government

  • A high court sitting in Ondo state has asked the CBN to freeze the acount of Polaris Bank
  • This is due to a N2 billion debt allegedly owned to the Ondo State government, however Polaris has replied
  • Polaris Bank, which was just acquired by Strategic Capital Investment Limited (SCIL) for a total package of N1.4trn

Polaris Bank Plc has reacted to the judgment of an Ondo State High Court, ordering the Central Bank of Nigeria to freeze its account.

The Punch had reported that Polaris Bank is allegedly owing a sum of N2,162,561,509.84 to the Ondo State government.

In a statement reacting to the Judgement on Saturday, 14 January 2023, Polaris bank said it had yet to be served a copy of the judgment.

Polaris bank court
Strategic Capital Investment Limited paid N1.4trn for Polaris bank. Photo credit: @ Lawan Auwal
Source: Facebook

Polaris Bank replies

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According to the Head of the Corporate Communication of the bank, Rasheed Bolarinwa, the debt case was still pending in court.

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Bolarinwa said the judgment had been appealed, adding that a stay of execution applied for was still pending in the court of appeal.

The statement read in part:

“We are aware of the matter and our solicitor has filed necessary processes to set aside the garnishee order.
“The matter is on appeal and an application for stay of execution is pending at the Court of Appeal. Thus, the garnishee order ought not to have been obtained by the reason of the pending appeal and motion for stay.
“The bank is yet to be served the garnishee order as required by law relating to garnishee proceedings.
“Above all, the effect of the order is not to freeze the bank’s account with CBN as published by a section of the media but to set aside the contentious judgment sum until the conclusion of hearing in the case.”

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List of Nigeria's most valuable banks start of 2023

Meanwhile, in another report, Legit.ng revealed the list of the most valuable bank in Nigeria at the start of 2023.

Zenith Bank and GT Bank are the most valuable on the Nigerian market among the 13 banks ranked.

The banks were ranked based on their market capitalization as of Friday, January 6, 2023.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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