On July 30, Core Asset Management Limited (CAML) sent N10,305,093 to Gbenga (surname withheld), a Lagos-based businessman who invested with the company in 2021.
Back in March 2021, Gbenga invested in the company’s Core High Yield Investment product, and in August 2022, he told CAML not to roll over the investment. Simply put, he wanted full payment upon the expiration of the deal.
However, the payment process was stalled by various factors, such as the inability to mutually agree on the interest to be paid along with the principal amount and a change in leadership of CAML.
According to Gbenga, the investment was a fixed deposit, with a tenor of 30 days. He said it would be liquidated at the end of the tenor in the event an instruction is given not to roll the investment over.
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“CAML is ordinarily supposed to drop the capital at the end of August 2022 when the instructions not to rollover elapsed. They refused to pay, and they were claiming that they were new owners and could not be responsible for the former owners’ liability. They also said I terminated the transaction prematurely,” the Lagos resident told FIJ.
“It was after the third month of inaction that I headed to the Lagos State Ministry of Justice, and took other steps to get other institutions, especially government institutions, to act, but they were frustrated by CAML.”
Apart from the Lagos State Ministry of Justice and the Economic, Gbenga escalated the issue to the Economic and Financial Crimes Commission (EFCC). He involved his lawyers and even reported to a media organisation, but none of these efforts yielded tangible results.
This was when he reached out to FIJ.
When FIJ first contacted the fund and asset management firm on May 20 via email, CAML confirmed the investment and explained its side of the matter.
The company’s response reads in part:
“Mr. [Gbenga] made an investment in the Core High Yield Investment product in March 2021, an investment that predated the acquisition of interest and assumption of management by the current leadership of CAML. While we empathise with his concerns, it is essential to state that Mr. Gbenga initiated termination of his investment prior to the agreed maturity date, and significantly before the current management assumed full operational control.
“Following his written instruction in August 2022 not to roll over the investment, we understood that he sought a full exit upon expiration. In the spirit of goodwill, and despite the fact that his request predated our management tenure, our team has made repeated efforts to engage Mr. Gbenga for an amicable resolution. Unfortunately, these efforts have encountered several challenges.”
The challenges that frustrated these efforts, according to CAML, included mediation breakdown, unavailability, communication breakdown, as well as media threats and legal dialogue.
The company added: “We wish to state clearly and unambiguously that Core Asset Management Limited is fully committed to honouring all valid and reconciled claims. We have made this position known through formal correspondence with Mr. Gbenga’s counsel and continue to keep the door open for settlement based on mutually agreed terms. However, our ability to proceed has been hindered by the absence of constructive engagement from his side.”
To the company’s response, Gbenga said, “It was not true that the absence of constructive engagement from my side hindered the payment.”
Between May and June, FIJ engaged CAML through email correspondence, with the Lagos businessman copied. In June, the firm promised to pay the invested capital on or before August 2.
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The company also indicated its readiness to resume discussion on compensation or additional interest once the capital has been settled in full.
Gbenga received the N10,305,093 capital investment on the evening of July 30.
In August, while confirming the receipt of the payment, Gbenga appreciated FIJ’s efforts in intervening in the matter.
The post After FIJ’s Intervention, Core Asset Mgmt Ltd Pays Lagos Investor N10.3m appeared first on Foundation For Investigative Journalism.