By Babs Oyetoro
The Central Bank of Nigeria (CBN) wielded the big stick by dissolving the boards and management of Union Bank, Keystone Bank, and Polaris Bank.
Acting Director of the Corporate Communications Department of the CBN, Mrs Hakama Sidi-Ali, disclosed this in a statement yesterday in Abuja.
According to Sidi-Ali, this action became necessary due to the non-compliance of the three banks and their respective boards with the provisions of the Banks and Other Financial Institutions Act, 2020.
She said that the banks’ infractions varied from regulatory non-compliance, corporate governance failure, and disregarding the conditions under which their licenses were granted.
She said that the management of the affected banks also got involved in activities that posed a threat to financial stability.
“The CBN assures the public of the safety and security of depositors’ funds and remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria. Our banking system remains strong and resilient,” she said
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The boards of directors and chief executives of the banks were invited to a meeting where they were addressed for 30 minutes each by the apex bank’s Deputy Governor in charge of Financial System Stability, Phillip Ikeazor.
Three other governors formed the panel that addressed the bank executives. They include the Deputy Governor in charge of Operations, Emem Usoro, the Deputy Governor in charge of Economic Policy, Muhammad Abdullahi, and the Deputy Governor in charge of Corporate Services, Bala Bello.
The panel reeled out issues of non-compliance and other infractions committed by the affected banks and then formally sacked the boards.
This followed the recent report of the Special Investigator on the Central Bank of Nigeria (CBN) and Related entities, Jim Obazee.
Earlier, the special investigator appointed by President Bola Tinubu invited the investors in Titan Trust Bank, but they reportedly refused to honour the invitation to a meeting with the Special Investigator.
Meanwhile, ThisNigeria had reported how the team of Special Investigators investigating the activities of the CBN under the immediate past governor, Godwin Emefiele, had recently cautioned the Chairman of Titan Trust Bank (TTB), Mr Babatunde Lemo, and two other key shareholders in the bank, Cornelius Vink and Rahul Savara against obstructing a probe into the acquisition of Titan Trust Bank and Keystone Bank.
To drive home its warning, the Special Investigating team turned down Lemo’s excuse of absence in today’s meeting.
This is in reaction to the letter received by the office from the legal counsels representing Lemo and two other shareholders in Union Bank, Cornelius Vink, and Rahul Savara, stating their inability to honour the invitation due to their absence in the country.
According to the letter by Prof. Gbolahan Elias (SAN), the TT Bank chairman, Lemo, Vink and Savara were not due to be back in the country before the second week in January 2024.
However, responding to the letter, the office of the Special Investigator, in a letter dated December 27, 2023, informed Lemo’s lawyers that the initial date for the invitation would not be changed.
The full letter reads “Reference is made to the Law Firm of G.ELIAS letter dated 27th December 2023 in response to the Special Investigator’s invitation to you via a letter with reference number CR:3000/TSl/ABJ/VOL.l /69 dated 24th December 2023 in respect of the above subject.
“I am directed to inform you that the Special Investigator is fully aware that you are in the United Kingdom to celebrate your birthday. This you made aware to the Special Investigator when you agreed to attend a meeting to be scheduled for 28th December 2023 and also proposed that Mr. Cornelius Vink and Rahul Savara be given seven days to prove their purported ownership of Titan Trust Bank and Union Bank of Nigeria or forfeit the shares to the Federal Government of Nigeria.”
Accordingly, this excuse given by your good selves through your lawyers is unacceptable and regarded as obstruction of the Special Investigator in the course of his duties.
“We want to put it on record that neither you (Babatunde Lemo) nor Cornelius Vink nor Rahul Savara ever submitted any of these requested documents to the investigating team at the Department of State Service (DSS) or anywhere else before now.
“Cornelius Vink and Rahul Savara have never presented themselves to the Special Investigator since 28th August 2023 when they were first invited for an interview.
“The Special Investigator also directs that you should be informed that documents submitted through proxies shall not be accepted as Mr. Cornelius Vink, Mr Rahul Savara, and your good self will be required to speak to whatever document(s)/information you present during the meeting.
“Consequently, I am to further inform you that your invitation to appear before the Special Investigator on 28th December, 2023 by 2pm prompt in respect of the matter under investigation and for which you had earlier made statement; stands.
“Kindly note that the conditions in paragraphs 6 to 8 in our earlier letter to you with reference number CR: 3000/TSl/ABJ/VOL. 1/69 dated 24th December 2023 remains effective and shall be triggered if you or Messrs Vink and Savara fail to attend the meeting as scheduled.
“Accept please, the warm assurances of the Special Investigator’s high esteem.”
ThisNigeria reported that the team had earlier on August 28 invited Lemo and other core shareholders of TTB for a crucial meeting, but the Secretary of Union Bank Plc, Somuyiwa Sonubi, had in response to the invite on September 1, given reasons why the invited persons could not meet up the appointment.
However, the latest invitation was sequel to Lemo’s defence in one of the national dailies on Sunday, following the release of the report of the special investigation into the activities of the CBN and other related entities.
The Head of Operations in the Office of the Special Investigator, DCP Eloho Okpoziakpo, had on December 24, 2023, summoned Lemo and others to appear before it by 2pm on December 28 (today) at the Department of Force Intelligence (DFI) in Abuja without fail or excuse.
