Cover Story
Ecobank, Chinese companies on collision course over unremitted sale proceeds
FUNSHO OLOJO
Two Chinese companies, Ningbo Cgas Valve company Limited and Hangzhou Tianlong Steel Cylinder Company Limited, are set to declare an international trade dispute with Ecobank Nigeria over an alleged non- remittance by the bank of $112,166.00 (N52,718.020) being an accrued sales proceeds from goods sold to a Nigerian importer, Mr Ejimofor Chinweze of Pure Light Auto Products Limited.
The simmering dispute between the bank and the Chinese companies followed two separate shipments of gas cylinders and accessories supplied by the companies to the Nigerian importer, Pure Light Auto Products Limited in May 2016.
According to the trade agreement between the Chinese suppliers and the Nigerian Importer, the payments for the transactions were to be handled by the respective banks of both the supplier and the importers.
Investigations revealed that the first transaction of gas cylinders was by Hangzhou Tianlong Steel Cylinder Company limited valued at USD 27,816.00 done through Bank of Hangzhou, the supplier’s bank while the second transaction of Cylinder accessories valued at the sum of USD 84,350.00 was made by Ningbo Cgas Valve Company Limited done through Agricultural bank of China, the supplier’s bank.
Eco Bank Nigeria is the receiving bank used by Pure Light Auto Products, the Nigerian importer and through which all the importing documents of the shipment would be delivered to the importer and through which payments for the goods was to be made to the suppliers.
According to the instructions sent to EcoBank Nigeria by the suppliers through their banks, the importer could only access the documents at the bank for the clearance of the goods after he must have fully paid for the total value of the goods.
According to Mr Chinweze, the Nigerian importer, EcoBank liened(took money from the account of the importer in their custody) his account far in excess of the naira equivalent of the dollar payment they were supposed to remit to the suppliers.
Chinweze claimed that he paid a total amount of N6,675, 840million which the bank liened from his account to purchase the dollar equivalent of $27,816.00 through the Central Bank of Nigeria(CBN) intervention window at the foreign exchange rate of N240 to a dollar in May, this year.
The amount was for the payment for the first shipment valued at $27,816.00.
The importer further claimed to have paid (liened) the sum ofN26,675,000million to the bank to purchase the dollar equivalent of USD84,350.00 through the CBN intervention window at the Forex market at N282 to a dollar as at then.
Even though, Chinweze complained that the initial agreed sum to be paid to purchase the forex was N24,500,000 but the bank took additional N2,175,00(liened from his account) without his authorization.
The amount was for the payment of the second shipment of the goods.
However, the importer lamented that Eco bank has refused to remit the total amount to his suppliers over six months after he has fulfilled all the contractual obligations.
‘’All my efforts to make the bank pay my suppliers the proceeds of their goods proved abortive as the bank’s officials were tossing me about, giving series of excuses.
‘’We opened the forex bidding when the official rate was at N265 and they even collected its naira equivalent in excess, but they made me to agree to buy at N310, when the official rate was not even up to that amount in May, 2016 when this transaction began.
‘’But I acceded to their request not because I was stupid but because I wanted them to quickly close the transaction and pay my suppliers so they could send me other shipments.
‘’But over six months now and despite fulfilling all the conditions they gave me, Ecobank is yet to remit the money’’, Chinweze lamented in an agonized voice.
The agitated importer declared that the intransigence of the bank to remit the money to his Chinese suppliers has caused untold damage to his reputation and business concerns, saying they have already blacklisted his company.
‘’These people know themselves. Words have gone round of what happened due to no fault of mine but as a result of the greed and insensitiveness of Ecobank people’’, Chinwere retorted.
He disclosed that in his desperation to get the bank remit the money, he engaged the services of legal representative whom he said was also rebuffed by the bank.
However, the bank, through Kemi Osuji and Bolanle Meshida of legal and Regulatory unit of the bank, acknowledged the complaints of Chinweze through his legal representative, Mohammed and Mohammed law chamber, promising to look into the matter.
That was in a letter dated October 10th, 2016.
‘’Since then, they have refused to pick my calls’’, the importer lamented.
The Public Relations unit of the bank was also playing the ostrich game as they kept mute over the allegations.
Despite repeated calls and electronic messages to one Austin Osokpor, Odidison Omankhanlen, Majoroh Maro and Akinbola Tope of the public communications department of the bank, they repeatedly ignored all the inquiries into this ignoble act.
It was however learnt that the Chinese companies, who are already aware of the role played by Eco bank in the non-remittance of their money, may involve their embassy in Nigeria to prevail on the bank to release the funds.
This move, analysts say, may spark off diplomatic row between Nigeria and China and affect the new- found business romance between the two countries as it has already cast a heavy pall of doubts on the integrity of Nigerian importers.
‘’Most of these Chinese companies deal with our businessmen on trust as this case depicts. They will ship your goods to you, ask you to sell and return their money. But with the refusal of Ecobank to remit forex for matured obligation in favour of these two Chinese companies, others Chinese companies may have a rethink on carrying out transactions that are based on trust’’, another importer observed.
Chinweze has therefore appealed to the CBN to wade into the matter in order to restore the integrity of Nigerian importers and save his business from imminent collapse.
‘’I think the bank is trading with the dollars and in the course of doing this and due to the volatility of the Forex market, the exchange rate went up, thus buying time to make for the huge differentials’’, Chinweze claimed.
He further disclosed that some of the bank officials, in quick succession, called him this Thursday, December 1st, 2016, asking him to bring more money to buy dollars at the rate of over N400 and then sign an agreement giving them authority to hold on to the remittance for another six months before they pay his Chinese Suppliers.
‘’From all indications, Ecobank is not ready to remit this money unless the CBN intervenes’’, the importer groaned in distress.
