The Economic and Financial Crime Commission (EFCC) has commenced investigation of directors of the defunct Skye Bank with a view to prosecute them.
This is according to the Managing Director of Nigerian Deposit Insurance Corporation (NDIC) Alhaji Umaru Ibrahim.
Recall that the CBN had last week Friday revoked the operating license of Skye Bank Plc, and appointed a bridge bank – Polaris Bank – to assume all the assets and liabilities of the defunct bank following the failure of its shareholders to recapitalise the bank.
Under the new arrangement, the Asset Management Company of Nigeria (AMCON) will inject a sum of N786 billion into the bank to bring the total net asset to zero. This, according to Emefiele, will stabilise the bank and return it to the path of profitability for the purpose of selling it to interested investors.
Speaking on the sidelines of the International Association of Deposit Insurers (IADI) Africa Regional Committee workshop in Lagos on Wednesday, Ibrahim said the directors are being investigated for their role in the erosion of the bank’s assets value.
“They are being investigated and I can assure you that when the time comes the necessary security agencies will do their work”, he said.
Dismissing speculations about the status of Polaris Bank as a duly registered entity, Ibrahim said: “Polaris Bank is a fully-fledged bank.
“If you have money there, you can go and test, you can always get your money, you can always enjoy banking service. Polaris Bank is no longer a bridge bank, it is a fully-fledged bank that has been issued a banking license by the CBN. And it is largely owned by Asset Management Company of Nigeria (AMCON), since AMCON is the new investor.
“AMCON will manage it through the management that has been asked to continue with the good job it is doing. AMCON will do that and then sell it,” he said.
On July 4, 2016, the CBN intervened in Skye Bank to salvage depositors’ funds and to ensure the sustainability of the bank after a forensic audit revealed that the company had recorded negative capital due to poor corporate governance.
Emefiele, while fielding questions at the end of the Monetary Policy Meeting on Tuesday, had said the CBN compelled both the entire board and the executive management to resign during its intervention in 2016.
Before the exit of the board and management of the bank, the Chairman of the Board, Tunde Ayeni, had been enmeshed in strong allegations of using his position to secure loans from the bank to invest in two power companies in Ibadan and Yola Electricity Distribution Companies (DisCos).
Skye Bank had said it detected massive losses and infractions while conducting the audit. It noted that the bank’s total exposure to Ayeni as of the date was about N70 billion. The forensic audit also indicted all former Group Manading Directors of the bank including Akinsola Akinfewa, Kehinde Durosinmi-Etti and Timothy Oguntayo.
President of Ghana, Nana Akufo-Addo has stressed that Nigeria needs to get it’s policy formulation and implementation right, by necessitating value addition, particularly in the oil sector.
Akufo-Addo, who was guest speaker at the Manufacturers Association of Nigeria, MAN 46th annual general meeting and lecture in Lagos, with the theme; “Mainstreaming Policies To Catalyze Industrial Renaissance”, was represented by Yaw Osafo-Maafo, Senior minister of Ghana, noted that Nigeria as a big brother to other African countries, need to lead in the area of policies that would make Africa economically sufficient and self-sustaining.
”Our lazy approach of always rushing to the international market to sell our resources in their raw state which fetch us peanuts must stop. It is far better to leave our resources untapped till our future generations rise up to the challenge and conscientiously develop the best policy-mix that prioritises industrialization as the most convenient cause to drive the much needed effects in our socio-economic development”.
”Why should Nigeria find it difficult to maximize the fruit of their oil industry for the benefit of her people? Our policies must of necessity move in the direction of value addition – i.e. processing of our raw materials. It is all a function of how defective we have developed the appropriate policy framework to support institutionalization of mechanisms that effectively trigger a more holistic and functional industrialization policy and drive”.
Akufo-Addo also added that beyond policies, Africa needs to have the right economic pilots and advisory council and end an era where weak boards are appointed to run strategic economic positions.
”One other challenge we face in our industrial thinking is our inability to forge and institute a strong and relevant corporate governance culture, systems and processes to drive the purpose, strategy and the vision of our business models. This often lead to the creation of weak, irrelevant boards of governors who are active and rubber stamping of what has been so determined rather than giving a strong and effective responses to counter decisions that are not in the interest of the organizational development”.
“Having effective policy alone is not enough. We should have men and women of substance who are resolute and driven by results and understand the policy framework guiding the business environment to play their effective advisory roles for our investment. Let us therefore begin to be circumspect with those we put at the helm of affairs as board members to advise us on the productive application of our investment”.
The Ghanaian President did not fail to address the trade issues affecting Africa in general, while mentioning models that could propel the African continent to economic viability.
”Africa has a population of about 1.3 billion people. Yet our combined GDP is about $2.2 trillion. When we compare to USA with a population of about 328 million people with a GDP of about $18.3 trillion. Same with Europe with a population of about 743 million and a GDP of about $17.3 trillion. By population, Africa is about 4 times that of the USA. Yet, USA’s GDP is about 8times that of Africa. Yet, we are the most endowed continent on earth.
“This means that Africa must begin to trade among ourselves concentrating on areas of comparative advantage. We must begin to break the trade barriers among ourselves and form alliances with the various countries Associations of Industries and Chambers of Commerce of the various countries. Through these associations, we may get to know the needs of the various countries and where they are opportunities of trade”.
On the Africa Continent Free Trade Area (AfCFTA), Akufo-Addo maintained that, the agreement is “critical to our economic development especially its ability to boost private sector multinational businesses within the framework of Public-Private Partnerships in a free movement of goods, services and people”. But, “it is important that we do not rush into taking decisions that will not have the buy-in from all critical stakeholders who drive business growth in Africa”.
”I welcome the organizers of the AfCFTA to adopt the bold strategy to undertake a wider consultation with all stakeholders in the massive sensitization and road show programme across Africa, and I am happy that this activity is done in consultation with and within the framework of the African Union Commission of Trade and Industry”, he maintained.
“Once we get both inter- and intra-Africa trade, investment and industrialization policy mix on the right tangent, we stand the chance of leading the new frontier to affect global industrial decisions for the interest of our people”.