‘RED FLAG’ AGAINST BANK CHIEFS BY ‘MEN IN RED’.
Bold, courageous, straightforward, intelligent, independent, impeccable, amiable and honest are some of the adjectives to the merit of Central Bank of Nigeria’s Governor Lamido Sanusi by some quarters as a result of the unfolding saga in the Banking Sector.
Other quarters have submitted that the whole show is about Northernization, Sectionalization, Lamidolization, Sanusitization, Faridalization, Wazirilization, EFCCization and CBNization.
But in our opinion at SOMOLU GLOBAL NEWS, we are hoping anxiously that those who feel that the saga should be about sanitization and democratization in the best interest of the public are on the right lane.
In the same vein, Senator Nkechi Nwogu had expressed that the CBN’s move is untimely as well as Partial. In her capacity as the Chairman, Senate Committee on Banking and other Financial Institutions, she made her opinion public by maintaining that the apex bank should have done the financial audit of all the banks before talking about sanctions. In her words, it is only a tree that will hear that it will be cut off in a week and still wait for its assailant, other banks would have learnt lessons and will do as much as possible to put their books in order. Mr. Sanusi, on Wednesday September 2, 2009 while explaining that the N420bn injected into the five banks (whose CEOs : Mr. Erastus Akingbola, Intercontinental Bank; Mrs. Cecilia Ibru, Oceanic Bank; Mr. Okey Nwosu, FinBank Plc; Mr. Batholomew Ebong, Union Bank; and Mr. Sebastine Adigwe, Afribank Plc; were sacked on August 14, 2009.) was a “loan” and not an “expenditure” pointed out that CBN is the ‘lender of the last resort’ to the five ‘stressed’ banks.
The Menu being served now was from the allegations leveled against five banks of illegally handling some of their banking activities. The CBN fired the five bank chiefs and gave the debt picture of the banks as thus : Oceanic Bank - N278.2bn. Intercontinental Bank - N210.96bn; Union Bank N73.6bn; Afribank Plc, N141.9bn; and Finbank, N42.4bn. In addition, Oceanic Bank was even said to have given some underground backdoor loan of N15bn. Over one trillion Naira was classified as non-performing loan (a banking term said to be determined by weighing a lot of indices) by CBN. To that effect, many debtors have rushed in to pay their debts and some were even said to have turned-in their properties (houses et al) as collateral until they can fully pay up.
The EFCC ‘Commandos’ under the leadership of Mrs. Farida Waziri have temporarily moved to Lagos for ease and affectivity of carrying out operations as per these alleged banking irregularities. They have indeed made the arrests of most Bankers involved in the case. Some of the arrested and arraigned persons connected to this case one way or the other are now either remanded in the EFCC custody situated along Okotie Eboh close in Ikoyi or the Ikoyi Prisons.
No matter how un-parochial the driving force of Sanusi, Farida Waziri and other Enforcers are in this hitch of the Banking Sector, there is every need to follow due process all the way. Sanusi has an uncommon opportunity now to show not only Nigerians but the world that his driving force in this issue of intercontinental interest and greatest importance is a YES to the Four Way Test.
This has become sacrosanct and imperative because all eyes are now watching. Nigeria is indeed in the limelight under a spotlight. Questions are being asked and these questions should be answered correctly and fairly. If at the end of the day the Apex Bank and EFCC are found wanting in any way whatsoever, there shall be no more atom of confidence even in the Federal Government of Nigeria of today. The EFCC reportedly got an order to keep most of the Bank Chiefs in detention beyond the constitutional 48 hours from a Magisterate Court in Lagos. But does the Magisterate Court have the competence to issue such order of such magnitude? Some of the detainees are dying. Mrs. Toyin Phillips reportedly collapsed in detention. Mrs. Cecilia Ibru had been said to be in bad health conditions as well as some others. The embattled Akingbola and Mrs. Cecilia Ibru had to file a challenge legally against their removal and also requested N50bn damages each on Monday 24th August, 2009. The suit was filed against the CBN Governor, Mr. Lamido Sanusi and the CBN at the Federal High Court in Lagos. On Tuesday 25th August, 2009, the legal counsel of Oceanic Bank’s Mrs. Ibru, Ajibola Oluyede declared that the CBN ’s action against Oceanic Bank is a COUP D’ ETAT. According to him Oceanic Bank has 350 branches in Nigeria, 7 branches in West Africa sub region and a focal point in China. Thus the counsel further explained that Oceanic Bank is not in any danger of insolvency. He also made some laudable, humanitarian, philanthropic, people-oriented projects of Oceanic Bank known publicly.
But our stand at SOMOLU GLOBAL NEWS is that, having more than 350 branches and being a philanthropist are not enough grounds for any bank’s director to give depositor’s money as loan to ghost companies! Whatever height these banks in question have gotten to today, it is largely based on the patronage you and I (whose beliefs are that our monies are in safest hands) have put into the banks.
Now, on Tuesday September 1, 2009, reports got to Somolu Global News that Mrs. Cecilia Ibru, Mr. Okey Nwosu (of Fin Bank Plc); Mr. Sebastine Adigwe (of Afribank Plc); Mr. Bartholomew Ebong (of Union Bank) alongside Mr. Henry Onyeme and Mr. Niyi Opeodu; seven directors of Intercontinental Bank Plc and Chairman Dr. Raymond Obieri were all arraigned before Justice Dan Abutu of the Federal High Court on Monday August 31, 2009. Mr. Erastus Akingbola (of Intercontinental Bank Plc) is reportedly still at large as at Wednesday, September 9, 2009. They (accused) are all facing a combination of 117-count charge of giving loans in excess of billions of Naira without adequate collateralized security. They have all pleaded Not Guilty.
Ebong, Opeodu, Oyemem, Ibru, Enuha, Alabi, Adegbite, Umar, Dada, Adams, are remanded in EFCC custody, while others are reportedly remanded at the Ikoyi Prisons. Though, their lawyers sought their release on bail with all professionalism, it was to no avail as the lawyers were required to file formally in black and white, and yet on Friday 04, Sept., 2009 when Lawyers numbering about 53 stormed the Court, freedom was still far-fetched.
Mrs. Ibru who had a 25-count charge could not stand on her feet while the charges against her were being read even at that (sitting on the chair) she fell off the chair at a point. This occasioned the court proceedings to be suspended for almost 20 minutes. As a result, the EFCC was advised to allow her to be properly hospitalized. The ‘Bank Shakeup Show’ will definitely end sooner or later. At the end of it all, ‘Iyan ma di atun gun, obe adi atun se’ - there will be need for proper overhauling of the Banking System. It will then be only fair and just to request of Charles Soludo to explain what had happened during his reign. Up to the point that even when these banks were reportedly falling, Uncle Soludo veiled Nigerians’ faces with an advertorial by CBN under him, published in the Punch Newspaper of Friday March 20, 2009. It read in parts : “the attention of the Central Bank of Nigeria has been drawn to the BASELESS RUMOURS about Intercontinental Bank Plc’s financial condition…” that “the Central Bank wishes to react as follows : * Intercontinental Bank Plc remains HEALTHY and has been meeting her obligation to her customers …” also that : “ * the general public is hereby advised to ignore any NEGATIVE RUMOURS or FALSE INFORMATION on Intercontinental Bank Plc or ANY OTHER NIGERIAN BANK as the INFORMATION is FALSE…” and that “The Central Bank of Nigeria reiterates its ASSURANCE that Nigerian Banks are STRONG ENOUGH to manage the shocks and challenges occasioned by the global economic crises”. Even though some of these Bank Chiefs may be found culpable of the charges against them, there is a saying that “everybody is a thief, it is only the ones that are caught in the open that are the Barawos”. By the time Uncle Soludo tells the world his part of the story, it will facilitate ruling out the fact that he may be an ‘uncaught barawo’ completely. Then it will be the turn of properly and analytically reconsidering the Vanguard News Story of March 2, 2009 about how a group of people were planning to take over five Nigerian Banks. The story is now of grave relevance to what is unfolding in the Banking Sector. Mr. Sanusi should be just and fair in his handling of the matter because apart from the fact that no one is a saint, he should not be seen as playing out a selfish plan of action built out of a ‘pre-conceived agenda’.
At the turn of a New Chapter in Nigerian Banking Industry, SOMOLU GLOBAL NEWS wishes to remind the government at all levels that Small and Medium Scale Enterprises in Nigeria should be given a chance by Nigerian Banks Loaning System. An average Nigerian already admits his resignation and fate that he has no place on the Bank Loan Queue. He does not even know the yardstick in ascertaining his fitness to obtain a Bank loan. All he hears are some banking jargons cajoling him to deposit his money but not being qualified to take a bank loan. Many golden ideas and futuristic, human, people-oriented projects have been killed owing to no funding. Most developed countries have been said to treat ideas and creative projects as goldmine and they have excelled unbelievably thereof.
Mr. Sanusi and his men can facilitate the process of making public, the conditions of obtaining a bank loan. That way, an individual screens himself before leaving his home in search of a bank loan. That way, not only the few privileged ones will be enjoying the benefits of OPM -other people’s money. Since many of these borrowers have reportedly said that the banks came virtually to force the loan on them even when they did not want, nor request for such loans in the neighbourhood of billions of Naira. So the need to collateralize such loans was defeated from the onset.
Uncle Sanusi, we must let you know that we the upcoming high achievers will not even request for loans in the tune of billions of Naira. Just let them provide us with the seven-figured loans and extend same generosity to the SMEs and in the next one year, come and see what Nigerians will become economically.
SMEs are catalysts for economic growth as reiterated by Dr. Uche Nwogwugwu, a lecturer in the Department of Economics at the Nnamdi Azikwe University, Awka; while delivering a paper at the 4th Annual Eastern Districts Conference of the Institute of Chartered Accountants of Nigeria held in Calabar recently. He also challenged the Federal Government of being insensitive to small scale businesses in Nigeria. He was said to have also remarked that The Federal Government wastes huge amount of Public Fund on the Ajaokuta Steel Complex, Iwopin Papermill, Bacita Sugar Company among others.