Senate Names Adedoyin, Offor, Bayero, others in N53.3bn insider credit abuse
•Gulf Bank former director owes N7bn
From Sufuyan Ojeifo in Abuja, 07.08.2009

Wednesday, July 8, 2009

At last, the Senate Committee on Banking, Insurance and Other Financial Institutions yesterday made good its threat to name former directors of 13 failed banks who were involved in insider credit abuse that led to the banks’ failure.

http://odili.net/news/source/2009/jul/8/211.html




The former directors of the failed banks collectively owed the failed banks N53.3 billion out of which the Nigeria Deposit Insurance Corporation (NDIC) has so far recovered a paltry N4.722 billion.

Former Minister of Science and Technology, Chief Ebitimi Banigo; former Minister of Information, Chief Dapo Sarumi; former Governor of old Kwara State, Alhaji Shaaba Lafiagi; an industrialist, Prince Samuel Adedoyin; a businessman, Sir Emeka Offor; and former Minister of State for Foreign Affairs, Chief Dubem Onyia, featured in the list.

Former presidential aspirant, Mallam Saleh Jambo; ex-Lagos State commissioner, Chief Remi Adiukwu-Bakare; her husband, Chief Stephen Bakare; Senator Chris Adighije; Senator Mike Ajaegbo; Chief S.O. Bakare; Chief Great Ogboru; Sir Victor Odili; Mr. Paul Achimugu; Mr. Adeyeba Adekunle Johns; Chief C.M. Ibeto; Alhaji Abbati Aminu Saleh; and Ibrahim Aminu Saleh among many others, also featured in the list.

Although, the name of foremost industrialist and richest man in the country, Alhaji Aliko Dangote, featured in the list as having received a credit of N650 million from the failed Liberty Bank in the name of Bullion International and Dangote Group of Companies, the NDIC indicated under recoveries made that he had liquidated the entire loan.

Chairman of the Committee, Senator Nkechi Nwaogu, named the affected former directors on the floor of the Senate shortly after the consideration of the Committee’s report of the public/investigative hearing on the agonies of the depositors of the failed banks and financial institutions.

This was consequent upon the approval by the Senate of the fifth recommendation contained in the 12-page report in which the committee was asking for its (Senate) mandate to publish the names of those involved in the insider credit abuse.

The Upper House, in approving the recommendation, directed that Nwaogu should proceed immediately to reel out the names contained in a tentative report presented to the committee by the NDIC.

The report, signed by NDIC Board Director/Director, Legal Department, A.B. Nyako, entiled: “Re: Schedule of Insider Credit of Banks Closed on 16th January, 2006,” said: “We refer to your letter dated 25th June, 2008 in respect of the above subject and forward herewith, the attached updated schedule of insider credits of 13 closed banks as at June 2008.

“Please note that in view of the fact that the accounts are insider related, the records are constantly being reviewed and reconciled. Accordingly, some of the figures reported are tentative.”

By reading the names on the floor, Nwaogu and members of her committee enjoyed parliamentary immunity. No legal action can be instituted against them.

Nwaogu was, however, hesitant despite enjoying legislative immunity, to release the names. There was mild drama before she declassified the list.

Many senators, including Olorunnimbe Mamora, Bassey Ewa-Henshaw, Ahmad Lawan and Ayogu Eze, supported the disclosure of the insider credit abusers, while a few including Senator Joseph Akaagerger initially opposed on the ground that some of the former directors are now chairmen of boards of some Federal Government agencies.

Mamora said: “A lot of violation and disregard for rules was carried out by the banks executives. There must be mechanism for enforcement of rules to bring this people to book.”

Lawan stated: “What happened in the bank was a betrayal of public trust. It was abuse of trust that people would put their money and because some people were privileged to know some directors, they would take money without due process, without even paying back.”

Senate President David Mark ruled that Nwaogu should read out the names, declaring that the Senate as an institution must be upright in the fight against corruption.

He said failure to announce the names of the creditors would amount to shielding corrupt people in the society. Nwaogu spent about 30 minutes reeling out the names and the details of the credit and recoveries made by the NDIC.

Some of the details reeled out by Nwaogu indicated that the highest insider credit abuser was a former director of failed Gulf Bank, Adeyeba Adekunle Johns, who got about N7 billion.

Banigo, former Chairman of failed All States Trust Bank, got about N3.2 billion with only N10 million recovered from him so far.

The remaining outstanding of about N11.8 billion was got by companies against whom no directors’ names were indicated. An individual (Prof. Nta Henshaw) got N17.9 million, bringing the outstanding balance to N15,170, 852,591.19.

Others are: Eagle Bank former directors - Alhaji Ibrahim Aminu Saleh and Abbati Aminu Saleh (N26.918 million) - who were personally guaranteed by their father and former Secretary to the Government of the Federation, Alhaji Aminu Saleh; and Paul Achimugu (N5.5 million), among others.

Trade Bank: Alhaji K.A. Olatunde (N13.3 million); Alhaji S.Y. Abdullahi (N1.25 billion); Lafiagi (N1.156 million) and David Chuka Nwosu (N3.4 million), among others.

Gulf Bank: Alhaji Sanusi Ado Bayero (N45.003 million); Babajide Rogers (N11.874 million); and Muyiwa Osho (N242.1 million).

City Express Bank: Prince Samuel Adedoyin and Mrs. Sola Adeoti (who both got N5.584 billion out which N453 million has been recovered so far).

Assurance Bank of Nigeria Plc: Angela Onyeador (N30.7 million); Chuka Nwokoko (N31.9 million); and Moore Onyekaba (N3.6 million), among others.

African Express Bank: Sir Emeka Offor through his Chrome Oil Services and other related companies got N15 billion and has repaid over half of the sum taken as loan.

Offor however, said he had defrayed his debt to less than N900 million and that he was at the verge of offsetting the balance when the report was made public by the Senate.

Liberty Bank: Chief Victor Odili (got N41.1 million; N10.6 million and another N2.6 million got in the name of Colodense Nigeria Limited) and Dr. T.C. Osanakpo (N43.6 million got in the name of Rison Palm Limited).

Hallmark Bank: Alhaji B.I. Bunu, Chief F.E.C. Adiele, Chief Jude Akpunku, Dr. Sam Eke, Nnamdi Anyaehie, Nze Maduako and others got a total of N9.3 billion.

Lead Bank: J.I. Abulime (N5.8 million); Mallam Saleh Jambo (N17.2 million); Captain Onu and Chief Dubem Onyia (both got N26.6 million in the name of Easy Link Aviation).

Metropolitan Bank: Senator Chris Adighije (N1.9 million); Senator Mike Ajaegbo (N210 million)’ Chief (Mrs) Remi Adiukwu-Bakare (over N1.093 billion); Great Ogboru (N799.7 million); Oladapo Sarumi (N3.8 million); and Chief S. O. Bakare (about N800 million).

After she rounded off and laid the report on the table of the Senate, Senator Enyinaya Abaribe (PDP, Abia South) raised the alarm that Nwaogu’s mobile phone was already being inundated with text messages threatening her life.

Mark, however, assured her that the Senate would request the Inspector General of Police (IGP) to provide her and members of the committee with adequate security to protect them.

He said the Senate was proud of them and that the Upper House would not abandon them after having done a great job in the interest of the nation.

According to him, “You have performed wonderfully. I commend you for the courage to bring this to limelight. You do not need to be afraid for what you have done for your country as those that have sent you the text messages should first think twice about their actions.

“We stand by you; we are together in this and we take full responsibilities for this report. It is a far-reaching report. We will do what we have to do. We must play by the rules. Those names here should be ashamed of themselves.”

Meanwhile, the Senate approved the other 14 recommendations by the Nwaogu-led Committee.

For instance, it recommended that the NDIC and all banks involved in the purchase and assumption (of failed banks) should embark on renewed public awareness and sensitisation campaign in the print and electronic media on the payment procedures to enable depositors in pre-and post consolidation failed banks, come forward for their deposits.

It also recommended that the Central Bank of Nigeria (CBN) should re-examine the practice under “Purchase and Assumption” whereby assuming banks are allowed to cherry pick the good assets of failed banks and leave only the government to take responsibility for the bad ones.

In addition, it recommended that the Senate should direct the NDIC to come up with a plan for immediate payment of all depositors irrespective of the pending court cases and to put a definite deadline for completion of the process.

[b]Debtors to Failed Banks…


Adeyeba Adekunle Johns

N7b (Gulf Bank)

Alhaji Sanusi Ado Bayero

N45.003 million

Babajide Rogers

N11.874 million

Muyiwa Osho

N242.1 million

Ebitimi Banigo

N3.2b with N10 million recovered

(All States Trust Bank)

Professor Nta Henshaw

N17.9 million

Alh I.Aminu Saleh & A. Aminu Saleh - N26.918 million (Eagle Bank)

Paul Achimugu - N5.5 million

Alh K.A. Olatunde

N13.3 million (Trade Bank)

Alh S.Y.Abdullahi

N1.25bn

Alh Sha’aba Lafiagi

N1.156 million

David Chuka Nwosu

N3.4 million

Prince S. Adedoyin & Mrs. Sola Adeoti

N5.584b with N453 million recovered (City Express Bank)

Angela Onyeador

N30.7 million (Assurance Bank of Nigeria plc)

Chuka Nwokoko

N31.9 million

Moore Onyekaba

N3.6 million

Sir Emeka Ofor- N7.5bn with N3.8bn recovered (African Express Bank)

Chief Victor Odili

N54.3 million (Liberty Bank)

Dr. T.C. Osanakpo - N43.6 million

Alh B.I. Bunu, Chief F.EC. Adiele, Chief Jude Akpunku, Dr. Sam Eke, Nnamdi Anyaehie, Nze Maduako

N9.3bn (Hallmark Bank)

J.I. Abulime - N5.8 million (Lead Bank)

Mallam Saleh Jambo - N17.2 million

Captain Onu & Chief D. Onyia

N26.6 million

Sen Chris Adighije

N1.9 million (Metropolitan Bank)

Sen Mike Ajaegbo - N210 million

Chief (Mrs.) R. Adiukwu-Bakare

over N1.093 billion

Great Ogboru - N799.7 million

Oladapo Sarumi - N3.8 million

Chief S.O. Bakare - N800 million[/b]

Ebitimi Banigo

N3.2b with N10 million recovered

Which kin recovery be this?. Somebody dey owe you 3.2B and all you got from him is 10milla?

The problem is not 2make the debtors names public.
What steps are they going 2take 2actually recover those monies.
Lets watch and see whether this is not another political motivated stunt 2score cheap political points or they actually mean to recover those monies on behalf of the failed banks

Isn't 1billion a thousand million.
Then im afraid of that list.
How do U recover monies in the excess of billions.

If they can't get the money, they can at least disgrace them.

puskin:

The problem is not 2make the debtors names public.
What steps are they going 2take 2actually recover those monies.
Lets watch and see whether this is not another political motivated stunt 2score cheap political points or they actually mean to recover those monies on behalf of the failed banks

Bros making it public is equally as good, who would have believed that all these
guys are the one that caused pain and sorrow to many depositors who cannot
get their money out of these banks. Sad some are well rspected by some of us
making their names public is quite ok

yoruba ibo yoruba combo again

LamidiObi:

yoruba ibo yoruba combo again

did you actually read the list?

Each time you see an unemployed Nigerian or hear about your relation or friend roobed or kidnapped, you can see those names who deprived others of employment by their brazen stealing in the name of insider borrowing.

‘4yrs After, Failed Banks’ Customers Yet to be Paid N188bn’

Chairman, Senate Committee on Banking and Finance, Senator Nkechi Nwaogu, yesterdaay said over N188 billion of depositors’ funds trapped in failed banks four years ago are yet to be paid to the beneficiaries.
Nwaogu, who made this known yesterday in Abuja at the West Africa Regional Conference on Smart and Appropriate Technologies for Rural Commu-nities, said it was sad that bank directors and other influential people that contributed to the collapse of the affected banks, by borrowing through the back door, now have new portfolios and are living in opulence, while ordinary customers of such banks are living in penury.
She said: “If you notice the figure in question, the people we are talking of now are the former directors and managing directors and chairmen board of directors of those banks that failed. We are not talking about people who borrowed money from the banks in the cause of their doing business. No! And we are saying that it is not fair for these directors, including insiders privileges, to borrow so much money for one thing or the other and at the end of the day these banks died and they died with customers' money.
Can we now ask over 60 percent of the population who do not have bank accounts to go and have bank accounts and blame them for putting their money under their pillow cases? “Then, will it be nice when they put their money at the end of the day these banks go underground deliberately or not deliberately and they are not paid their deposits. Four years down the line and the people who borrowed through the back doors are unable to pay. What the Senate is saying is that we must begin to be our brothers’ keepers. We must sanitise. We are talking of rebranding, we must rebrand from within, we rebrand from ourselves. And some of these people or board members are now real big men with new portfolio. Is it right?" Given this scenario, Nwaogu called on the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to pay the depositors to assuage their sufferings because the aggrieved had been bombarding the National Assembly with petitions.
But Chairman, Doyin Group of Companies, Prince Samuel Adedoyin, had stated that the City Express Bank which he chaired was no longer owing any depositor, saying , rather , he was the one being owed for overpaying depositors by over N400 million.
Adedoyin, in a statement made available to THISDAY, was reacting to reports published in some national dailies yesterday that the Senate Committee that looked into the depositors' fund with the failed banks indicted him and City Express Bank which he chaired.
Adedoyin said he was particularly disturbed by the reports because, according to him, he "went the extra mile to ensure that City Express Bank owes no one anything after it was declared unfit to remain in operation."
Adedoyin, who appealed to President Umaru Yar'Adua to urge restraint on the path of the Senate "so that the innocent is not punished unjustly by such malicious and wicked report," added that " My fervent hope is that someone is not trying to score a cheap political point by including my name, that of my company and that of Funke in the report."
Adedoyin had also said in his statement: "The indictment, by a committee chaired by Senator Nkechi Nwaogu, is a very disturbing development to me as an industrialist who has contributed in no small measure to the development of the industrial sector of the country.
"City Express Bank is no longer owing any depositor. Rather, I am the one who is being owed for overpaying depositors by over N400 million. The case is already in court in order to enable me recover the excess I paid to the depositors. I had to sell part of my estate in Abuja to pay the depositors when the Central Bank of Nigeria (CBN) ruled that City Express Bank was not solid enough to continue in business by a yardstick that is still unclear to me and a lot of people.
"In the said report, it was imputed that my estate in Abuja, Peniel Estate, took a loan from City Express Bank. This is indeed untrue and very embarrassing. So also did the said report indict my daughter, Funke Adedoyin, a former Minister of the Federal Republic of Nigeria, for having taken loans from City Express Bank. This is indeed untrue as Funke never did so. I wonder when and how she got the loan that is not in the records of the bank. Except, of course, one has been doctored."
Nwaogu has however said that her committee was not witch-hunting former directors of the 13 failed banks who were named on Senate floor on Tuesday.In response to the declassification of his name among the insider credit abusers, Senator Chris Adighije (2003-2007) had accused Nwaogu of playing bad politics. Nwaogu defeated Adighije in the Abia Central Senatorial District election in 2007. The Court of Appeal recently order a retrial of the election petition which the lower tribunal had ruled in favour of Nwaogu.
“We don’t have any political motive at all. The Senate mandated us to investigate the plight of Nigerian depositors of failed banks and the NDIC supplied the relevant information, we have no business to doubt the credibility of (NDIC),” she said.


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