BIPC Opens Defence Case Against Former CEO

….Judge Adjourns Case To 27th May For Hearing

MAKURDI – The Benue Investment and Property Company Limited (BIPC) has filed its defense in a suit instituted against it by a former Managing Director and Chief Executive Officer (MD/CEO), of BIPC, Barr Alex Adum, at the National Industrial Court, Makurdi.

This is even as the Presiding Judge, David Isele, has adjourned the case to 27th May for hearing.

Adum who had dragged the defendants before the court challenging his illegal removal from office and refusal of the defendants to pay his entitlements, is also seeking to be paid damages caused him by the said action of BIPC.

When the case came up at the Court for mention on Friday, Counsel to BIPC, Nathans Gwebe, said their defense has already been served on the claimant and other defendants.

Therefore, while Counsels to both parties agreed that the court processes be regularised and the case allowed to progress, Gwebe insisted that the claimant has no case against the defendants.

While Gwebe stated that the defendants have responded to the complaint of the claimant point by point, he said that during an emergency board meeting held on 30th June, 2020, the board of the company approved the purchase of official cars for some management staff.

Sequel to this, he explained that on 17th April, 2023 the claimant and others were allegedly paid N142.4millon for official cars, adding that the claimant collected N65.8m from the said amount.

The Counsel to BIPC, further stated that upon his appointment, the claimant was placed on GL 14 salary and his gross monthly salary was N481,538.54, while his net monthly salary was N252,208.16, which are contrary to the figures he mentioned in his complaint.

He also observed that only staff on the payroll of the company were entitled to salary and allowances therefore since the claimant was no longer their staff, he can not enjoy such benefits.

Furthermore, while Gwebe said the claimant had before his removal from office collected certain allowances up front which they would be asking the court to compel him to refund to the company, he said the company would provide more details in the course of their defense.

The former MD, Barr Alex Adum, had dragged the defendants (BIPC) before the court challenging his ‘illegal’ removal from office and refusal of the defendants to pay his entitlements

He asked that the defendants be made to pay to him, N5 million cost for litigation, N5 million cost for special damages, N20 million for general damages and 20 per cent interest on the judgement debt from the judgement until the entire amount was paid.

The Claimant told the court that the defendants appointed him on 20th August 2019 as the Managing Director and Chief Executive Officer, Benue Investment and Property Company Limited, for a statutory term of five years.

However, he averred that on 1st June, 2023, the defendants through a correspondence from the Secretary to the State Government removed him from office without due process, adding that the defendant has refused to pay his salary, allowances and severance gratuity as contained in his condition of service.

In the complaint, Adum, said the defendants were owing him N23.7 million salary and allowances for the remaining 15 months of his term and severance gratuity of N1.5 million.

He also pointed out that he was entitled to an official car (SUV) to be either purchased or monetised, which he was never given, even as he urged the court to compel the defendants to pay him N130.7 million for the car.”