Court convicts FBN, MD, Chairman on contempt over N17bn judgement debt 

The Federal High Court sitting in Lagos has convicted First Bank of Nigeria Limited; its chairman, Mrs. Ibukun Awosika; and Managing Director, Dr. Adesola Adeduntan, of contempt. They were found guilty of refusing to release N17 billion and interests that First Bank allegedly guaranteed to pay Ejama-Ebubu community in Ogoniland, Eleme Local Government Area of Rivers State, on behalf of Shell Petroleum Development Company of Nigeria Limited (SPDC).

The community had suffered oil spill whereupon they were promised compensation via a judgment against SPDC in an oil spill suit filed by the community. But First Bank had since reneged to pay the judgment debt to the affected community. The court dismissed the preliminary objection to a contempt charge filed against the defendants (First Bank and its officials) by community.

Consequently, the court found them guilty of refusal to release N17 billion and interests that First Bank allegedly guaranteed to pay the community on behalf of Shell. In his ruling, Justice Ibrahim Buba suspended the sentencing for three months to enable the bank and its officials to purge themselves of the contempt. At the expiration of three months which terminates September 6, the convicts would be sent to jail should they fail to purge themselves of contempt.

Ten indigenes of Ejama community sued Royal Dutch Shell Plc, Netherlands; Royal Dutch Shell Plc, United Kingdom; and SPDC at the Federal High Court in Port Harcourt over alleged oil spills that occurred when Shell operated in their community.

The presiding judge, Justice Buba, awarded N17 billion to the community’s representatives in 2010, as well as 25 per cent interest on the principal sum, among other reliefs. But Shell appealed the judgment and applied for a stay of execution pending the appeal. Shell and the people of Ogoniland had been feuding over oil spills and environmental degradation.