The legal disputes arising from the 2023 acquisition of Pan African Towers (PAT) have intensified, placing the company's Board Chairman, Adefolarin Ogunsanya, at the centre of allegations relating to corporate governance, shareholder influence and executive independence.
Court documents before the Federal High Court indicate that former Chief Executive Officer Azeez Amida supported the investor consortium led by Development Partners International (DPI) and Verod Capital after receiving assurances that the company's management would retain a minimum five per cent equity stake through a proposed Management Incentive Plan (MIP).
According to the filings, the proposed equity arrangement was a key factor in Amida's decision to back the transaction. He now alleges that the agreement was never implemented after the acquisition was completed, leading him to institute a separate lawsuit seeking damages exceeding $30 million.
The court filings also reference an email in which Ogunsanya allegedly shared documents relating to the proposed Management Incentive Plan, inviting Amida to review the structure before the acquisition was finalised. The documents form part of the evidence before the court.
Amida further alleges that the company's governance structure changed significantly after the acquisition, with shareholder representatives and certain board members becoming increasingly involved in operational matters, including procurement decisions and commercial negotiations. Ogunsanya is identified in the filings as one of the directors who participated in discussions that later became part of the dispute.
In his defence, the former CEO maintains that the financial transactions now being challenged followed Pan African Towers' established approval procedures. He argues that final approvals were handled by the Chief Financial Officer appointed after the acquisition and that the expenditures passed through the company's finance, procurement and executive management processes before being authorised.
Pan African Towers has, however, filed legal action against Amida over alleged financial misconduct. He has denied the allegations, challenged the court's jurisdiction and argued that the lawsuit was filed in retaliation for his earlier legal actions against DPI, Verod and other parties involved in the acquisition.
The various suits have brought renewed focus on governance standards, board oversight and investor-management relations within Pan African Towers. However, all allegations and counter-allegations remain before the courts, and no judicial determination has been made. The parties are expected to present their evidence as the proceedings continue.
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