Kano businessman threatens to sue EFCC for ‘contempt’ in insurance claims suit

Abdul Almustapha, a Kano-based businessman, has threatened to sue the Economic and Financial Crimes Commission (EFCC) for alleged interference in a case against the owner of Alibert Products Nigeria Limited.

In 2021, Almustapha, chief executive officer (CEO) of Rasa Beverages Limited, sued Ali Ta’an, the managing director of Alibert Products Nigeria Limited, for allegedly setting fire to his property leased to the company to “fraudulently” make insurance claims.

BACKGROUND

In 2019, Almustapha was said to have leased his property—a two-storey building on No 5C Murtala Muhammed Way, Kano—to Ta’an for 10 years at an annual rent of N15 million.

The lease terms had mandated the tenant to “fully insure” the premises against fire and theft during the lease period.

Almustapha claimed the tenant also agreed to indemnify the lessor (landlord) “in the event of a fire outbreak caused by the negligence of the lessee, its agents.”.

However, Ta’an allegedly took insurance on the building at Consolidated Hallmark Insurance PLC, Lagos, without indemnifying the landlord.

On December 20, 2021, a fire outbreak razed the building around 1am.

After the incident, Ta’an allegedly approached the insurance company on the same day to file a fire insurance claim for Alibert Products Nigeria Limited.

In the claim form, Ta’an blamed the incident on a “transformer fire.”

However, it was said that findings by the Kano State Fire Service and the state police revealed that the fire incident was not an accident.

The police filed a criminal suit against Ta’an, charging him with “willfully and maliciously” igniting the fire.

On May 12, 2023, the owner of the building sued the Lebanese businessman at a Kano high court, along with one of his employees, Mustapha Tiamiyu.

On September 26, the parties agreed to have an out-of-court settlement.

Aisha Mahmoud, the presiding judge at the Kano high court, adjourned the matter and fixed November 26 for a report of the settlement.

However, Almustapha claimed that while the lawyers for both parties were still negotiating the settlement terms, Ta’an allegedly petitioned the EFCC to invite and detain an accounting staff of Consolidated Hallmark Insurance.

THE CASE AGAINST EFCC

In a letter dated October 4, Alhmustapha, through his lawyer, Okechukwu Nwaeze, asked Ola Olukoyede, EFCC chairman, to ensure justice is not subverted.

He added that the alleged attempt to use the anti-graft agency to force the insurance company to pay the Lebanese claims of over N700 million on his property would amount to contempt of court, noting that the case is still ongoing.

“It is unwholesome to note that despite the submission of the counsel in court, the plaintiff in suit No. K/76/2023 and the first defendant in suit No. K/250/2023, in breach of his counsel’s submission in open court, have continued to push your office to take decisions that may show contempt to the honorable court and its proceedings by insisting on collecting the insurance payment,” the letter seen by TheCable reads.

“Take note that if you persist in this contempt, we shall be left with no option but to seek to join your office as a party to this suit and seek injunctive reliefs against you.

“This shall also be without prejudice to our client’s right to take other measures against the commission.”