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NEWS and REPORTS => Nigerian News => Topic started by: TGD on Feb 24, 2013, 06:30 AM

Title: News - Court Fixes March 1 For Hearing On AIC, FAAN Suit
Post by: TGD on Feb 24, 2013, 06:30 AM
 Akinyemi Tasks Judiciary On Anti-corruption

THE Federal High Court, Lagos, said it would hear arguments on the preliminary objection filed by AIC Nigeria Limited challenging the jurisdiction of the court to entertain a suit filed by the Federal Airports Authority of Nigeria (FAAN) against the firm on March 1.

FAAN, through its motion on notice, filed on its behalf on January 22, 2013 by Chijioke Okoli, had sought to restrain AIC, the firm that won a bid to build a $220 million five star hotel at the Murtala Muhammed International Airport, Lagos from occupying the parcel of land allocated.

Meanwhile, Former External Affairs Minister, Professor Bolaji Akinyemi, yesterday tasked the Nigerian Judiciary to rise up to the duty of curtailing corruption.

Akinyemi spoke in Akure, Ondo State, during a lecture he delivered to mark the second term inauguration of Dr. Olusegun Mimiko, which holds Sunday.

He noted that the judicial system has mellowed down on the way it handles corruption under President Jonathan's administration.

The Emeritus Professor, who said he knew he "was stepping on toes", said Nigerian judges now look at corruption cases in perspectives that favour the accused, especially in the way they grant bail and interlocutory injunctions.

At the last sitting, counsel to AIC, Professor A. B. Kasunmu, raised a notice of preliminary objection against the motion. The objection was brought, pursuant to the

inherent jurisdiction of the court. In it, the defendant is seeking an order of the court striking out the suit on the ground that the court lacks jurisdiction to entertain the action. The matter is before Justice Mohammed Idris.

The firm also prayed the court to strike out the suit on the ground that it is an abuse of sourt process, taking cognisance of similar suit pending before the court. The defendants prayed the court:

"In the alternative, even if (which is not admitted) this honourable court has the

jurisdiction to entertain the plaintiffs claim, the action should be struck out being an abuse of the process of this honourable court, having regard to the reliefs being sought in this case and the reliefs being sought in suit No. FHC/L/CS/1058/2010 and the pending applications in the said suit, particularly, application dated January 26, 2012 and January 11, 2013."

According to the firm's counter affidavit to the motion on notice, the land in dispute is the subject matter of arbitration between the parties, which was handled by late Justice Kayode Eso. Deposed to by Abiodun Taiwo, a litigation officer in the chambers of A.B. Kasunmu, the defendants averred that although the arbitrator found favour of AIC Limited on all issues of law and fact raised before him, and awarded the sum of $48, 124, 000 as damages for breach against FAAN, "the arbitrator cannot order specific performance of the contract between the parties, which was in turn based on the ground that the arbitrator would have no power to supervise the enforcement of such an order."

He swore that the property in dispute was leased to AIC Limited for a period of 50 years by Deed of Lease dated February 17, 1998, adding that AIC Limited commenced operation in respect of the Hotel Project on the site that FAAN threatened to take over.

"That AIC Limited has not only been in continued and undisturbed possession of the land since 1998; it has also fenced the land round and has structures on the land for its security staff and port cabins for building materials and equipment," he said.

FAAN had filed another suit to set aside the award of the contract in which the firm beat four other bidders in on March 3, 1997, as a result of FAAN's open invitation.

AIC and the aviation agency had been embroiled in bitter acrimony over the plan by the former to execute a concession it won in 1996 to build a multi-billion dollar, Flightpath Hotels and

Resorts, at the Murtala Muhammed International Airport, Lagos and three other airports, namely, Lagos, Abuja, Kano and Port-Harcourt.

The history of the AIC International Airport Hotel project dates back to 1978. The first design was done by AIC Limited in 1978 for the then Federal Ministry of Transport and

Aviation. The hotel was to be owned by the Federal Government and designed and project managed by AIC. Unfortunately, it was not completed due to lack of available government funding.

On March 3, 1997, as a result of FAAN's open invitation, preliminary discussions and visits to probable site locations, AIC submitted to the Managing Director of FAAN its proposal principally aimed at developing a Five Star chain of hotels to be named Flightpath Hotels and Resorts, in four international airports in Nigeria, namely, Lagos, Abuja, Kano and Port-Harcourt.

Professor Bolaji Akinyemi addressed a gathering of eminent personalities including traditional rulers, top government officials and politicians from across political party divide.

"The Economic and Financial Crimes Commission (EFCC)'s Act states that interlocutory injunctions should not be given by judges handling corruption cases," he said, expressing dismay that corruption cases now drag on almost indefinitely because those accused of graft obtain bail, which in most cases signals the end of their cases.

Reacting to questions from some of the participants about the level of corruption in the country, Akinyemi said it is difficult for anybody to be a billionaire in Nigeria except such a person is corrupt. Our system does not allow the emergence of honest billionaires. You could be millionaires, yes, but a billionaire? You have to be corrupt to be one."

Akinyemi urged Mimiko not to relent in his efforts at developing Ondo State.

In the lecture titled, 'Leadership, Democracy and Development: A Paradigm Relationship', Akinyemi congratulated Mimiko for his achievements during his first term in office and urged him not to rest on his oars.



The Guardian