LABOUR LAW–The National Industrial Court, Abuja division has set aside the suspension of the Managing Director of FHA Homes Limited, Mr. Roland Igbinoba.

According to the honourable court ruling delivered by Justice E.N Agbakoba held that the suspension of Mr. Igbinoba as the Managing Director (MD) of FHA Homes Limited was unlawful, illegal and wrong. 

The court therefore ordered that the salary benefits and entitlements of the wrongfully suspended Managing Director (MD) be fully paid within 30 days from the day of judgment, failing, will attract an interest of 10 per cent per annum until fully paid by the company.

The genesis of the matter was, Mr. Igbinoba who was suspended from office on the June 2, 2015 had approached the National Industrial Court, NIC seeking an order of perpetual injunction restraining the first defendant  (The Federal Housing Authority) and the third defendant (Managing Director/Chief Executive Officer of Federal House Authority, FHA, Prof. Mohammed Al-Amin) from suspending him from office.

Accoriding to the judgment of the court, Mr. Igbinoba was awarded N300,000 as cost of the suit against the defendants. He agreed that his suspension was hinged on bad faith, predicated on the disagreement between him and the third defendant.

Lawyer representing Igbinoba in the case, Mr. Osaro Eghobamien argued that his client was never presented with the facts of allegation against him and was never given the opportunity to defend himself in line with the principle of fair hearing.

Eghobamien informed the honorable court that he was never invited by the “Interim Report Committee” that reconciled financial/property standing with the Federal House Authority, FHA Homes Limited to make clarifications on some issues raised in its report, nor was he given an opportunity to make clarification at the Board of Directors meeting of FHA Mortgage Bank before his suspension.

In reversing the suspension Igbinoba, the court held that a director of a company who is about to be removed or suspended must be presented with the allegations to enable him make a representation, emphasizing that fair hearing is the foundation of every legal system.

While the joint statement of defence filed by the defendants’ lawyer, the defendants had agreed that Igbinoba was not removed from office as the Managing Director/Chief Executive Officer of FHA Homes Limited but was placed on indefinite suspension to enable an independent forensic audit be carried out on the affairs of FHA Homes which he superintends.

The defendants through their counsel, Tony Ogbolafor further averred that the claimant was discharging his duties diligently until the Central Bank of Nigeria sent in their supervisory report for the period of 1st October, 2013 to 30th September, 2014 and the report of the interim committee set up by the Federal Housing Authority to reconcile financial/property standing with FHA Homes Limited was submitted to the interim management of the FHA.

The court therefore ordered that the salary benefits and entitlements of the wrongfully suspended Managing Director (MD) be fully paid within 30 days from the day of judgment, failing, will attract an interest of 10 per cent per annum until fully paid by the company.

In this article: