…writes CBN to intervene, claims N50m damage
AN agribusiness firm, Santuscom Agro Investment Company Limited, Wednesday, raised the alarm over illegal blocking it’s bank account and hindering the company from accessing a N300,035,160.00 facility it obtained from Bank of Industry allegedly by SunTrust Bank.
According to the Managing Director and Chief Executive Officer, CEO, Santuscom Agro Investment Company Limited, Chief Ofana Paul, in a letter made available to journalists, addressed to the Director, Consumer Protection Department, Central Bank of Nigeria, CBN, over blocking of the company’s account with SunTrsut Bank, after it was credited with the loan facility by BoI, on December 31, 2021 of the said amount.
The letter with subject ‘Complaint Against Suntrust Bank Ltd For Placing An Unlawful Post No Debit/Freezing Of Our Account With Accoun No 0002386699 And Our Loan Facility Of 300,035,160.00 From The Bank Of Industry To Up Scale Our Rice Processing Facility In Ogoja Cross River State’ to the CBN reads in part, “We hereby write to report SUNTRUST BANK LTD for unlawfully placing our account on freezing/post no debit and also disallowing us to utilize the loan facility of 300,035,160.00 availed and disbursed to us by the Bank of Industry (BOI) for the purpose of up scaling our rice processing facility in Ogoja Cross river state.
“Santuscom agro investment company limited (RC: 1439777) is an agribusiness company operating in rice cultivation, processing and packaging, for the past five years. Our brand OGOJA RICE has been a market leader enjoying a significant proportion (60%) market share within the rice value chain in cross river state. It is long grain, highly vitalized and 100% stone free.
“We received the money from Bank of Industry (BOI) on the 31st of December 2021 in line with the disbursement agreement between our company SANTUSCOM AGRO INVESTMENT COMPANT LTD and the BANK OF INDUSTRY (BOI), the loan is specifically for the up scaling of our rice milling facility, according to the agreement contained in our offer letter dated 21st July 2020,the repayment on interest on our loan starts immediately the facility is disbursed and we are in defaults already from the 31st of January 2022 and risk being black listed by the bank of industry as a result of the unlawful post no debit/freezing of all funds in our account by SunTrust Bank.”
According to the letter, “We have made all efforts to reach out to SunTrust bank for a possible resolution of any issues that has necessitated the bank to act in this manner, but all efforts have fell on deaf ears, in fact we have written to the MD of the bank to take action, but no response
“SunTrust bank issued us with a bank guarantee and meeting all conditions including a fee of N6,225,000.00 (Six Million, Two Hundred And Twenty Five Thousand Naira) as bank guarantee fee, APG and VAT, provision of collateral documents of our property in cross river state valued at over N900,000,000 (Nine Hundred Million Naira) and also with an instruction for the bank to also consider an asset debenture of machines in our factory, all efforts to put the bank on the table to see reasons to lift the unlawful post no debit on the account has been ignored by the bank
“We here by request for an immediate investigation and resolution to enable us commence our business and meet our repayment obligations to the Bank of Industry (BOI).”
Meanwhile, the MD of Santuscom Agro Investment Company Limited, said, his company has written through his legal team, DO Ariku & Co to the Managing Director of SunTrust Bank, on releasing the company’s account and money but now awaiting the bank’s response.
The legal team in the letter is claiming the payment of N50 million as damage for the alleged illegal blocking of it’s account with the bank saying the action has take an adverse toll on the company’s business fortune.
However, he also said the bank has no court order to block/freez the company’s account, he said the company will file a law suit against SunTrust Bank for the unlawful action.
The letter dated February 9, 2022 to the bank’s MD with the subject “Request to unblock Santuscom Agro Investment Company Ltd account number 00023866699 domicile with your bank”, reads in part, “It is our brief to demand that you unblock the account immediately, and you pay the sum of N50 million Naira into the same account as damage within one week commencing from the date of receipt of this letter, failure of which we shall have no option other than to commence legal action against your bank.”
Chief Ofana lamented further that as a result of the bank’s action that the company has lost the sum of $1.5 million in a business transaction that has been concluded for the exportation of Nigerian rice to the Gambia.
It is also about to loose its quota of rice paddy allocated to it in the just concluded rice pyramid launch by Mr President.
He noted that Santuscom was allocated 10,000 bags of paddy rice at a subsidized rate geared toward crashing price of rice in the market but it couldn’t meet up with it’s financial obligations due to the frustrating action by the bank.
While condemning the action of the bank, he argued that such kind of action of the bank was part of the things hindering the success of the agro industrialisation and revolution policy of the President Muhammadu Buhari led Federal Government.
