Nigerian Newspapers
Customer account opening mandate: Matters Arising
In the past two publications of this column, we dealt with two aspects of bank customers’ account opening mandate. We dealt with basic definitions and information on account mandate in the first publication while the second publication dwelt on questions and issues raised by readers in reaction to the first story. In today’s publication, we are finalising discussions on the matters arising from the first and the second parts of this topic, and perhaps concluding our discussions on the topic.
In this concluding part, we shall be addressing other issues of trust and integrity in operating joint account mandates, either as individuals or companies. We shall be approaching it from the questions raised by the readers:
QUESTION No. 3 (last week’s edition carried questions 1 & 2)
Godwin and Andrew (not real names) have a joint domiciliary account (in US dollar) with a bank, and the account opening mandate required both to sign for withdrawals. They have had a disagreement and Andrew went to see their account manager complaining that a cheque for $ 1,000 signed by both of them payable ‘cash’ had been debited to their account as $ 1,600, paid in cash to Godwin.
On investigation it was revealed that when the cheque was made out by Godwin, he omitted the word “dollars” in the body of the cheque. After the cheque had been signed by Andrew, Godwin added the word “Six Hundred Dollars” and altered the figures by the simple addition of a stroke on the zero making it six. Andrew claimed that the cheque had been materially altered after he signed it and claimed that the bank wrongfully paid the amount in the cheque and therefore should accept liability. What should the bank do?
ANSWER
In the first place, the customers owe their bankers the duty of care while drawing cheques so as to prevent fraudulent alterations as recorded above: Joachimson V. Swiss Bank Corporation (1921).
If clearly the cheque has no material deviation from the standard drawer format, the claims by Andrew would be difficult to be established because all concrete evidence showed that he endorsed a cheque appropriately drawn and consequently honoured. However, the onus is on Godwin to admit that the figure in the honoured cheque was signed by Andrew.
It would be a moral question between Andrew and Godwin (i.e. Godwin’s words against Andrew’s). The bank is clearly absolved from liabilities. The bank will not be liable if the alteration was made in such a way as to obliterate reasonable ground for suspicion: London Joint Stock bank V. Macmillan and Arthur (1916).
QUESTION 4
Mr. Ugochukwu and Mr. Uchenna trading as Ugouche & Co. opened their company’s current account in XYZ Bank Ltd with the mandate for signing cheques stating that all cheques for N10,000 and above must be signed by both partners.
One day, Ugochukwu came up with a claim that several cheques each for N9,000 and less, totaling N112,000 in one week had been signed by Uchenna alone and had been debited to the partnership account. He was angry that the bank kept honouring the cheques, sometimes three in a day without asking questions or referring to him. Upon investigations, it was clear that 80 per cent of the cheques were in favour of persons related to Uchenna, with no bearing on the business of the company. What is the bank’s position regarding this complaint?
ANSWER
The complaint above clearly indicates an ‘either to sign’ mandate for withdrawals below N10,000.00.
From the complaint above, the bank was adhering strictly to the instruction given in the mandate form. The bank has not in any way contravened the instructions which had previously been given in the mandate.
However, the bank may need to establish the true position, examine and cross check all partnership cheques that are being questioned with Ugochukwu. This is to establish which ones represent payments for trading transactions and which, if any, are cheques drawn for the personal benefit of Uchenna.
The bank can now isolate the ones that clearly have no bearing with the business of the company and ask Ugochukwu to go and meet with his partner for further explanations.
The outcome of such meeting will determine if the partnership would continue or not.
Conversely, the bank may advise that a new mandate be filled out, stating that all cheques/ instructions to the bank must be signed by both partners.
It may be important here to add that in the event that the cheque value is above the N10,000 mandate limit for ‘either to sign’ and the cheques were drawn to settle genuine partnership debts, the bank can exercise its right of subrogation i.e. step into the creditor’s shoes: B Ligget(Liverpool)Ltd. V Barclays Bank Ltd.(1928).
The cheques invariably become validly debited to the partnership account. In that case, the bank would have to get Ugochukwu to regularise the position and confirm the cheques by adding his signature to the instruments, if he accepts the fact that that the payments were for company’s legitimate debt or obligations.
But if on the contrary the cheques were used for Uchenna’s private purposes, the bank would be made to refund the partnership account as such above limit cheques violated the account opening mandate for withdrawals.
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Posted in Nigerian Newspapers. A DisNaija.Com network.
Source: Punch Newspaper
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This Day
Military, Police Ring Abuja to Forestall Boko Haram Attack
•Deploy more personnel as army chief vows to wipe out terror group
•Security beefed up at N’Assembly
Deji Elumoye and Kingsley Nwezeh in Abuja
Abuja, Nigeria’s seat of power, is under a massive security cordon following threats of attacks by insurgents and the increasing wave of banditry in the contiguous states of Kaduna, Kogi, Nasarawa and Niger States, THISDAY’s investigation has revealed.
There has been a wave of kidnappings in the outskirts of the federal capital, notably Pegi, Tuganmaje and Kuje among others, which the police have battled in recent times.
The security situation in and around the Federal Capital Territory (FCT) was heightened by the pronouncement of the Niger State Governor, Mr. Sani Bello, that Boko Haram fighters who he said sacked 50 villages in the state and hoisted the terror group’s flag, were about two hours drive away from the FCT.
Security has also been beefed up at the National Assembly as operatives, yesterday, thoroughly screened every vehicle approaching the National Assembly complex in Abuja.
The deteriorating security situation nationwide prompted the National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, to warn that the 2023 general election may not hold, demanding the declaration of a state of emergency as well as the convocation of a national conference.
However, the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, yesterday restated the Nigerian Army’s determination to annihilate Boko Haram.
But the Governor of Katsina State, Hon. Bello Masari, cautioned against declaring a state of emergency, saying doing so isn’t the solution to combat the security challenges facing the country.
The security of the nation’s airports was also in focus yesterday as the Office of the National Security Adviser (ONSA) said there was no threat to them.
THISDAY’s investigations showed increased presence of troops, police, Nigerian Security and Civil Defence Corps (NSCDC) personnel and intelligence operatives at the three strategic entrances to the city notably, Keffi, Zuba and Gwagwalada.
More checkpoints were also mounted around Gwagwalada and Keffi.
THISDAY also observed increased intelligence deployment at the entrance and the borders of FCT with contiguous states.
Beyond the borders, there were more deployments and police patrols inside the city and increased intelligence deployments as well.
Security sources told THISDAY: “There are deployments here and there but they are routine. Alertness is key to a secure environment.”
It was also learnt that security agencies were involved in frenzied meetings throughout yesterday.
The meetings, coordinated by the office of the Chief of Defence Staff under the new joint operational strategy of the armed forces, were aimed at coordinating a joint response to possible threats of attack to the FCT.
“I understand the security teams have been meeting for some days now and if you look around you, you will notice that there are increasing patrols and numbers of security personnel. The threats are not been taken lightly,” a source said.
National Assembly workers, lawmakers and visitors also had a harrowing experience accessing the legislative complex due to heightened security in the area.
Security operatives thoroughly screened every vehicle approaching the National Assembly complex in Abuja, impeding both human and vehicular traffic.
The Sergeant-at-arm of the National Assembly and other security agencies supervised the operations, leading to huge traffic build-up inside the complex.
Legislative staff, visitors and lawmakers were seen patiently waiting for their cars to be searched so that they could go ahead with the business of the day.
Some staff and visitors at some point got tired of waiting and were seen alighting from their cars to trek from the gate to the complex.
Meanwhile, the ONSA has said there is no threat to the nation’s airports.
A statement by the Head of Strategic Communication, Mr. Zachari Usman, said the reports of threats to the airports were an internal correspondence of security threat assessment misconstrued as security threat to the airports.
PDP Demands State of Emergency
In a related development, the PDP National Chairman, Prince Uche Secondus, yesterday demanded the declaration of a state of emergency, warning that the 2023 general election might not hold if the federal government failed to tackle insecurity.
He called on the federal government to summon a national conference to address the spike in insecurity.
Secondus added that the national caucus of the party will meet today to discuss the state of the nation.
Addressing members of the National Executive Committee (NEC) in Abuja, Secondus said: “We are worried Abuja is not even safe. It is no longer politics. We got alert of plots to bomb and burn down our airports.
“We urge the federal government to declare a national state of emergency in security. There is the need to call a national conference to discuss the insecurity in the country.
“There may not be any election in 2023 in Nigeria due to insecurity. This government must listen to the people. The Buhari government should call a national confab to discuss security and state of the nation. It is no longer politics. This time we are not playing politics. Let’s keep politics aside and move the nation forward.”
He said the country had been grounded, regretting that there had been no matching response from the federal government.
Secondus said in the past, terrorism in the North was confined to the North-east, but with the report of Boko Haram occupying villages in Niger State, terrorism had spread to the North-central
“Herdsmen are also menacing in the West; gunmen causing havoc in the East; and the militants in the South; all killing, looting, raping, maiming and burning down homes. The situation is bad; Nigerians all over are living in fear,” he said.
The Senate Minority Leader, Senator Enyinnaya Abaribe, said the problem of Nigeria was outside of the PDP headquarters, while pledging the support of the Senate to the declaration of state of emergency in security.
Abaribe said he deliberately decided not to speak on the floor of the Senate but to allow the APC senators to speak so as to avoid being accused of giving a partisan colouration to the issue of insecurity.
He stated that only electoral reforms would give victory to the opposition party in the 2023 general election and ensure a democratic defeat of the APC-led federal government.
Also, the Minority Leader of the House of Representatives, Hon. Ndudi Elumelu, commended the NEC and the PDP leadership for their collective efforts at resolving the House leadership crisis.
The NEC meeting adopted the position of Secondus, calling on the federal government to convoke a national conference to discuss the state of insecurity in the country, according to a communiqué read by the National Publicity Secretary, Mr. Kola Ologbondiyan.
Army Chief Vows to Wipe Out Boko Haram
The army yesterday reiterated its commitment to wipe out Boko Haram.
Chief of Army Staff (COAS), Lt. Gen. Ibrahim Attahiru, told reporters in Maiduguri, Borno State that Boko Haram had been defeated in many encounters and would continue to be defeated until it’s annihilated from Nigeria.
“We will take on Boko Haram decisively, and we are committed to the focus of the operations, which is the total annihilation of Boko Haram from Nigeria,” he said.
The COAS, who was visiting the headquarters of Operation Lafiya Dole in Maiduguri for the fifth time since his appointment four months ago, said the visit was to boost the morale of the troops, reassure them and listen to any issues affecting them.
Earlier, the Theatre Commander of Operation Lafiya Dole, Maj. Gen. Farouq Yahaya, lauded the visit, which he said had continued to boost the morale of the troops.
“We are honoured, we are grateful, we are encouraged by those visits. You provided us guidance, logistics and other things we required. We are most grateful for those visits,” Yahaya said.
State of Emergency Won’t Solve Security Challenges, Says Masari
Katsina State Governor, Hon. Aminu Masari, has, however, said declaration of a state of emergency won’t solve the security challenges facing the nation.
Masari, who spoke yesterday with journalists after meeting with the Chief of Staff to the President, Prof. Ibrahim Gambari at the State House, Abuja stated that he was against the recent call by the House of Representatives for the declaration of a state of emergency in the security sector as it would not solve the problem.
According to him, declaring a state of emergency will not achieve the desired effect as the security structure and personnel to be used to execute the emergency are already overstretched in a bid to safeguard lives and property.
Sourced From: THISDAYLIVE
Tribune
Nigeria records 55 new COVID-19 infections, total now 165,110
Tribune Online
Nigeria records 55 new COVID-19 infections, total now 165,110
The Nigeria Centre for Disease Control (NCDC) has recorded 62 new cases of COVID-19, bringing the total number of infections in the country to 165,110. The NCDC disclosed this on its official Twitter handle on Friday. “55 new cases of #COVID19Nigeria; Lagos-21, Yobe-19, Ogun-6, Akwa Ibom-3, Kaduna-2, Plateau-2, FCT-1, Rivers-1.” YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE COVID-19: Nigeria Recorded […]
Nigeria records 55 new COVID-19 infections, total now 165,110
Tribune Online
Sourced From: Tribune Online
Premium Times
Insecurity: Lagos bans occupation of abandoned buildings
The government said that no worker should stay back beyond 6:00 p.m. within premises of buildings undergoing construction.
The post Insecurity: Lagos bans occupation of abandoned buildings appeared first on Premium Times Nigeria.
Sourced From: Premium Times Nigeria
The Nation
UFC: Usman gets N584m after beating Masvidal
Kamaru Usman has raked in a mammoth £1.1million, about N584.2 million after his impressive knockout victory over Jorge Masvidal on Saturday night, Sportivation.com.ng reports.
The Nigerian Nightmare has been handsomely rewarded for his stunning performance and he was the best-paid fighter on the card which was witnessed by 15, 000 fans in Florida.
According to Daily Mail, Usman earned £538,000 to show up, £459,000 pay-per-view bonus, a £43,000 sponsorship bonus and a well deserved £35,000 Performance of the Night bonus.
Jorge Masvidal also earned £358,000 to show, £186,000 in pay-per-view money and a £28,000 sponsorship bonus.
This is the biggest payday of Usman’s career so far and the Welterweight champion also benefited from the fact that Masvidal is also a top draw for the fans.
Kamaru Usman is a Nigerian-American professional mixed martial artist, former freestyle wrestler and graduated folkstyle wrestler.
Sourced From: Latest Nigeria News, Nigerian Newspapers, Politics










