BankPHB shareholders seek recovery of N66m depositors’ funds
Tuesday, 25 January 2011 00:00 Editor Business Services - Business News
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SHAREHOLDERS of Bank PHB have sought President Goodluck Jonathan’s direct intervention in the activities of the bank to save them from losing N66 million shareholders and depositors funds.
They said that only the President’s personal intervention and presidency investigation of Bank PHB would help them retrieve the illegal and reckless disbursement of the bank’s N66 million to cronies of the interim management.

The investors under the aegis of concerned shareholders said that their resort to the President stemmed from negative effects of the interim management balkanisation of the bank’s troubled shareholders’ and depositors’ funds on the nation’s shared financial industry values.

According to them, their resort to Jonathan also followed the nonchalant attitude of Central Bank of Nigeria (CBN) to play down the allegations which bordered on ethics and corporate governance.

They argued that the board’s approval of N30 million vehicle allowance to out-going board Chairman, Mr. Kolawole Abiola was high clandestine against the background that he had earlier collected N11 million for the same purpose in 2007.

Concern shareholders wondered, “under what provisions or extant policy of the bank did they derive the power for this bizarre and unilateral action that was not discussed at any board meeting?
To them, more disgusting remains the recent approval of N11 million upfront payments to Abiola for the 2011 board meeting allowance when the chairman is due to retire in March 2011.

The other allegations raised by the concern shareholders in a statement signed by Alhaji Sani Waziri and Mr. George Udoh in what they described as the questionable disbursement of N66 million, included the N25 million election support offered to a director that failed in his gubernatorial ambition and $120,000 off-shore vacation allowance to the bank’s Managing Director, Mr Cyril Chukwuma.

The shareholders also frowned at the reckless disbursement of N60 million by Bank PHB to another management staff as mortgage loan as against the staff entitlement of N39 million.

The bank in a reaction by a management staff who wanted to be anonymous described the allegations as frivolous and baseless stressing that they were recycle stories aimed at tarnishing the image of the institution.

He said that bank’s silent on the issue and refusals to joining issues with some disgruntle elements “was because CBN had earlier given the bank a clean bill of health after investigation.”

The source said that while he could not speak for the board, the management remained committed in repositioning the bank irrespective of some calculated distractions.
http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=36439:bankphb-shareholders-seek-recovery-of-n66m-depositors-funds&catid=31:business&Itemid=562

I flushed my 5000 USD down the drain buying Bank PHB shares.

^^^

You dont wanna start, do you?

Igbobuigbo take time ooooo