Otudeko Sues Zain’s Directors Over Lease Of $27m Property

The Chairman of First Bank of Nigeria Plc, Mr Oba Otudeko, on Thursday filed a suit against some directors of Zain Nigeria over the lease of a $27 million property as the company’s  headquarters.

The property is situated on Banana Island, Ikoyi, according to Otudeko.

The defendants are Messrs Gamaliel Onosode, Moez Daya, Sam Deeb, Haitham Al-Khaled,  Salah Al-Fouzan and Paul Usoro as well as  Ms Tsega Gebreyes.

In the suit before Justice Okechukwu Okeke of the Federal High Court, Lagos, Otudeko, a shareholder in Zain, is challenging the legality of the directors’ decision.

Otudeko filed the suit along with his firm — Broad Communications.

The plaintiffs said the leasehold was over-valued at $27 million for a five-year tenure, arguing that the decision was not in the interest of Zain and its shareholders.

The plaintiffs contended that the decision of the directors was unfair and prejudicial.

They added that the defendants failed to exercise reasonable skills legally required in the discharge of their duties.

 They are praying the court to direct the defendants to reverse the leasehold transaction.

Otukedo and his firm also want the court to declare that the defendants breached their legal duties by entering into the leasehold at such a cost.

 The plaintiffs alleged that the defendants connived to nullify the statutory function of the board in order to enter into the leasehold transaction.