Polaris Bank Sale Controversy Deepens as Over 200 Employees Express Their Deep Concern Over Unpaid Salaries.

In the midst of the sale controversy, over 200 employees at Polaris Bank are voicing their deep concern about not receiving their salaries. For Polaris Bank Limited, it's been a day filled with problems. The bank, already under scrutiny due to its contentious sale, is once again making headlines for all the wrong reasons.

As previously reported by THEPRESSNG, concerns are growing about the bank's future in light of Nigeria's upcoming political transition. With president-elect Bola Tinubu set to be inaugurated on May 29, there is speculation that he is preparing to overturn the bank's controversial sale.

In October 2022, the Central Bank of Nigeria (CBN) controversially sold a bank for a meager N40 billion after injecting over N1.2 trillion into it. This move sparked a series of accusations, with lawmakers, trade unions, and other critics condemning the deal. The apex bank allegedly sold the bank to Strategic Capital Investment Limited (SCIL), reportedly linked to Auwal Lawan Abdullahi, who holds the Sarkin Sudan Gombe traditional title and is the son-in-law of Ibrahim Babangida. Despite his limited background in banking and finance, Abdullahi's association with the sale raised eyebrows.

The sale resulted in a significant loss for Nigerian taxpayers, estimated at around 97 percent of the state's investment in Polaris. As of December 2020, the Asset Management Corporation of Nigeria (AMCON) had invested N848 billion in the bank, and insiders claimed an additional N350 billion was injected between January 2021 and July 2022.

The ongoing crisis has led to the withdrawal of funds by some bank customers, particularly small and medium enterprises, who are moving their money to perceived safer banks due to concerns about the bank's potential distress.

Internal sources indicate that the bank has witnessed a loss of customers, especially depositors who are anxious about their funds and have lost trust in the institution due to widespread job losses and unethical industrial practices.

Investigations by this publication revealed that, for the second consecutive month, over 100 branch managers have been suspended without pay for having a non-performing loan ratio above 5%. Interestingly, these loans were reportedly duly approved, with the bank earning interests on them. Some managers claim they did not originate these loans but rather they were referred and booked by senior staff who continue to operate freely.

According to labor laws, a worker's suspension without pay should not exceed two weeks. However, the bank initially issued suspension letters for 30 days, and after this period elapsed, the suspension continued for an additional two months without any communication to the staff.

Some employees, in conversations with our correspondent, mentioned that the bank's management insisted that suspended staff must come to work daily and undergo performance reviews with the managing director leading weekly meetings that extended late into the nights.


Details:- https://www.newsngr.com.ng/2024/01/polaris-bank-sale-controversy-deepens-as-over-200-employees-express-their-deep-concern-over-unpaid-salaries/

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