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Nairaland Forum / Nairaland / General / Politics / Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal (3661 Views)
Buhari’s Certificate, APC And Unanswered Questions / Cbn Threatens To Sack More Bank Mds / EFCC Freezes Accounts Of Sacked Bank MDs (2) (3) (4)
Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sunnybobo3(m): 12:33am On Aug 15, 2009 |
THE Central Bank Governor, Sanusi Lamido Sanusi, yesterday made good his threat to remove banks Managing Director if found wanting. So he announced the removal from office the Managing Director and Executive Directors of Afribank Plc, Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc and Finbank Plc. (Mrs.) Cecilia Ibru (Oceanic Bank), Mr. Okey Nwosu (Finbank) and Dr. Bath Ebong. At the press briefing to announce his decision which he said has the backing of the President Umaru Yar’Adua, Sanusi said, “I should also state at this point that the scope of the Special Examination was widened to cover all 24 banks. So far, we have concluded the audit of 10 banks including these five, the others being Diamond Bank, First Bank, United Bank for Africa, Guaranty Trust Bank and Sterling Bank. We have also commenced the next batch of 11 banks and hope to conclude them by end of August. All in all, we expect to conclude the audit in mid-September. “The Central bank is requiring all banks to make appropriate provisioning for non-performing loans and disclose them. We hope that by the end of this quarter, all banks would have cleaned up their Balance Sheets. On the basis of the information available to us so far, we are confident that the banking system is safe and sound and we have dealt with the major sources of systemic risk.” If the banking system is safe and sound and the ongoing audit of the remaining banks will end in mid-September, why is Sanusi in a hurry to cause panic in the system? By this action, he has unwittingly confirmed fears in some quarters that he has a hidden agenda to carry out. The CBN governor has left one of the sick banks which market operators are saying has some particular regional affiliation untouched and has not by his own admission concluded the audit investigation in all the banks. Besides, the fact that the apex bank has injected N402 billion as tier two capital which will be sold to both local and foreign investors further fuels the fears that the CBN governor’s agenda is unfolding. Before the appointment of Sanusi as CBN Governor, there were strong indications that anti consolidation forces were regrouping with the hope of dissembling the banks and forcing a take over of the top five banks in the country. The grand plan by the group is to cause panic and uncertainty in the industry and make the target banks look unsafe for depositors, just as it has happened now. The aim, it was alleged, is to cause loss of public confidence in the banking industry and compel the Federal Government to move in by injecting funds. Observers further said the group ultimately plans to instigate government to take equity holdings in the targeted banks as Sanusi has announced. Vanguard on its front page report early in the year had revealed that the group at work is made up of former bank owners who lost out during the consolidation exercise, a powerful clique in the present government, and some aggrieved persons in three of the six geopolitical zones in the country who felt left out in the consolidation exercise. Presidency sources at the time disclosed that those who felt left out in the consolidation exercise are grieved and are up in arms to recoup what they felt they lost during the Obasanjo years. Part of the plan hatched by the group which has played out was said to be to ensure that the former Central Bank governor, Professor Charles Soludo, did not get a second term. The plan, the source went on, was also to ensure that whatever gains that consolidation had was to be discredited. This it was learnt was meant to force the President to act quickly in the appointment of a successor to Soludo as they anticipated that the president’s slow move may scuttle their dreams and cause the renewal of Soludo appointment for a second term which they achieved with ease. The group’s second game plan is said to make Nigerian banks look unsafe in the eye of the banking public. It is said that they have perfected their game by spreading rumours that some categories of banks are unsound and are on the verge of collapse. “They sent out text messages to individuals and account holders passing wrong information on their target banks. At the time, the group’s target was one of the high flying new generation banks where they have sent out several messages. One of the text messages which one of the operators gave to Vanguard stated “— one of Nigeria’s high-flying banks is facing serious difficulties that could force it into liquidation before the end of 2009. The bank’s precarious situation is due to its huge exposure to toxic loans to stockbrokers and importers of petroleum products.” Unfortunately for the CBN, the very bank in question at the time Intercontinental Bank is affected by the CBN pronouncement. There is certainly not anything anyone will tell the staff and shareholders of Intercontinental Bank that the CBN action was not pre-meditated and targeted at it. Sanusi admitted that changing the bank management was not enough guaranty for the sound management of the affected banks for he said, “We are conscious of the fact that changing management alone will not resolve this problem. Consequently, the CBN is injecting a total of about N400 billion into these five banks with immediate effect in form of Tier 2 Capital to be repaid from proceeds of capitalization in the near future. This injection is sufficient to resolve and stabilise all the institutions and enable them continue normal business. The injection of fresh capital by the CBN is a temporary measure as government does not intend to hold the shares for long and shall divest its holdings as soon as new investors recapitalize these banks. Curiously Sanusi failed to say how long the interim management will stay in the affected banks and when new investors will be called in to recapitalise the five banks. He did not say what conditions the new investors will fulfil and what mode the recapitalisation will take. Sanusi admitted that banking problems were not peculiar to Nigeria at this time for he said, “As we are all aware, the world economy has been hit by the repercussion of the financial meltdown that started with the sub-prime mortgage crisis in the United States of America and spread to Europe and other parts of the World. This crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt, in Nigeria, the banking system appears to have weathered the storm due to a number of factors. Among these are the facts that our financial system is not strongly integrated into the International Financial System, as well as the relatively simple nature of financial products and strong capitalisation and liquidity of Nigerian banks.” However, there are many who have been aware for a while now that whereas the system in general is likely to absorb and survive the effects of crisis, the effects vary from bank to bank. A few Nigerian banks, mainly due to huge concentrations in their exposure to certain sectors (Capital Market and Oil and Gas being the prominent ones), but due to a general weakness in risk management and corporate governance, have continued to display signs of failure. Consequently, having reviewed all the reports of the examiners and the comments of the Directors and Deputy Governors, I am satisfied that these five institutions are in a grave situation and that their Management have acted in a manner detrimental to the interest of their depositors and creditors. Therefore, in exercise of my powers as contained in Sections 33 and 35 of the Banks and Other Financial Institutions Act 1991, as amended, and after securing the consent of the Board of Directors of the CBN, I hereby remove the Managing Directors and the Executive Directors of the following banks from office with effect from Friday, August 14, 2009. affected banks: Mr. John Aboh – MD/CEO Oceanic International Bank Plc; Mr. Mahmud L. Alabi- MD/CEO Intercontinental Bank Plc; Mr. Nebolisa Arah – MD/CEO Afribank Plc; Mrs. Suzanne Iroche- MD/CEO Finbank Plc; Mrs. Funke Osibodu – MD/CEO Union Bank Plc. Each of the above will head a management team that will include Executive Directors and Chief Financial Officers to be appointed by the CBN. This team is tasked with continuing the businesses of the banks as a going concern. I therefore appeal to the Boards of the affected banks, in their own interest, to cooperate with the newly appointed Executive Management. “I will conclude by restating that,going forward, the CBN will not waiver in its desire to ensure that public confidence in the Nigerian banking system is maintained through appropriate disclosures and the reinvigoration of its policy of zero tolerance on all professional and unethical conducts. We will not allow any bank to fail. However, we will also ensure that officers of banks and debtors who contribute to bank failures are brought to book to the full extent of the law and that all proceeds of infraction are confiscated where legally feasible”. The CBN governor is not done yet in the next few months he will release the next phase of his agenda. The big question is can the Nigeria financial system stand the stress of some spending their life time to build institution while others idle away only to surface mid stream to take over such institutions? The next few months will give all of us the answer.” http://www.vanguardngr.com/2009/08/15/unanswered-questions-about-bank-mds%e2%80%99-removal/ |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by kosovo(m): 12:41am On Aug 15, 2009 |
Insert QuoteNOISE! |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by babyrl: 12:46am On Aug 15, 2009 |
I wonder how much Vanguard and Gabriel OMO got paid. So he should have left the CEO who made his/her bank technically insolvent alone? |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 12:51am On Aug 15, 2009 |
Isn't this theft? How can govt sack people in the private sector and then inject money which they didn't ask for? Are they being forcefully bought on behalf of a shady group? Nigeria is in trouble. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by babyrl: 12:56am On Aug 15, 2009 |
Beaf: They are not private, they are publicly trade companies. Even in other countries were the banks are private, they must report and are under the control of the country's Central Bank because, banks are important institutions to a country's economy and can pose systematic risk to the economy of a country. Do you think all the U.S or U.K banks that received money wanted it? The central bank( federal reserve) injected the money because they are banks and they are important to its economy. The money the CBN injected is Tier 2, meaning the banks do not have to use it, it just there to shore up capital. It is totally different from government buying the shares of the company. How is it theft? They did not buy shares in the bank. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Tudor6(f): 1:01am On Aug 15, 2009 |
There might be some truth to this story, who knows? Anything is possible in naija especially when it deals with background politicking. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by babyrl: 1:07am On Aug 15, 2009 |
The Chief Executive Officer of Oceanic Bank, Chief Mrs. Cecilia Ibru OFR, has condemned the action of the Central Bank of Nigeria in sacking the management of Oceanic Bank Plc. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 1:08am On Aug 15, 2009 |
babyrl: The fact that they are registered on the stockmarket doesn't move them out of the private sector. They are private sector; the public sector is made up off govt parastatals which those banks aren't. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 1:12am On Aug 15, 2009 |
babyrl: Exactly! What Sanusi has done is unheard off the World over. Can you imagine? People start their own companies with their own sweat and govt can come and sack them? Damn! |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by agabaI23(m): 1:13am On Aug 15, 2009 |
Lets see who will emerge as the CEO of these banks. Let us see how many Northerners that will come in. Remember the northerners felt cheated and have wanted a share of the CEO slots. Probably this is a way of giving them a reprieve. I hope Sanusi knows what he is doing. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by babyrl: 1:15am On Aug 15, 2009 |
Beaf: But they are under the authority of the Central Bank. The got license from the CBN to operate in the country. No matter if it is listed on the stock market or not, a bank MUST submit it a copy of its statement to the Central Bank live a publicly traded bank does. And the Central Bank has authority to remove the CEO, Director under the CBN and BOFIA Act. The foreign banks in Nigeria such as Stanbic, Standard Chartered and Citi Bank are also getting audited. Even though Standard and Citi are not listed on the NSE, they got a license to operate in Nigeria, so the CBN has authority over them. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by babyrl: 1:18am On Aug 15, 2009 |
Beaf: What happened to the Chairman of Bank of America (he is still CEO)? CEO of AIG, CEO of one Switzerland bank? CEO or Chairman of RBS? They just left without pressure from their various central banks, who injected money into the banks? |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sunnybobo3(m): 1:18am On Aug 15, 2009 |
Beaf: d) where, after an examination under section 32 of this Decree or otherwise howsoever, the Bank is satisfied that the bank is in a grave situation as regards the matter referred to in section 32 (1) of this Decree, the Governor may be order in wiring exercise any one or more of the powers specified in subsection (2) of this section. (2) The Governor may be order in writing under subsection (1) of this section: (c) remove for reasons to be recorded in writing with effect from such date as may be set out in the order, any manager or officer of the bank, notwithstanding anything in any written law or any limitations contained in the memorandum and articles of association of the bank; http://www.cenbank.org/out/Publications/bsd/1991/bofia.pdf |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 1:26am On Aug 15, 2009 |
Sunny_bobo: I really pity Nigeria. So we are using military decrees to sack private sector workers? What a joke! A decree from IBB's period in office. All the time I keep insisting we need a national conference, people say "oh theres nothing rong with the country". I'm sure people are still being arrested under the colonial law of "wandering"! ![]() ![]() ![]() |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sagamite(m): 1:28am On Aug 15, 2009 |
Beaf: Moronic drool from start to finish. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sunnybobo3(m): 1:30am On Aug 15, 2009 |
Beaf: As Amended 2007 |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by babyrl: 1:30am On Aug 15, 2009 |
Beaf: Do you know in other countries, the CBN or their equivalent have the right to remove the CEO or directors, if there is evidence to show they have put the country's economy at risk. Banks can pose a systematic risk to a country's economy. That is why countries have a central or apex bank to put them in check. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 1:31am On Aug 15, 2009 |
Sagamite: You can abuse me from now till doomsday. I don't care. Private sector people sacked by IBB's decree, in a democracy! |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sagamite(m): 1:36am On Aug 15, 2009 |
Beaf: They are private sector people in charge of people's life savings and net worth, who are mismanaging it. The government has been required to save them so can sack whom the Bleep they please. UK did the same with Northern Rock, does that mean UK is in trouble? The all singing, all dancing bandwagon of ________ quickly jumping at the slightest opportunity to say Nigeria is doomed. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 1:41am On Aug 15, 2009 |
Sunny_bobo: A search for 2007 in the document returned nothing. It was last altered in 1998 during the reign of General Abdusalami Abubakar. Na wa for dis country! wuru wuru too much! Sacking business owners by military decreee! |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 1:45am On Aug 15, 2009 |
Sagamite: Maybe you can decieve those who aren't aware and any sort of foul language you can lay your hands on. Tell me one manager or director that was sacked in any bank in the UK. Just one, I'm begging! Private sector people sacked by IBB's decree, in a democracy! |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by otokx(m): 2:38am On Aug 15, 2009 |
No hidden agenda. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Jarus(m): 7:11am On Aug 15, 2009 |
How on earth can a schooled person not know that CB has the power to sack bank CEO? Isn't ds well known? I'm disappointed @ pple putting fwd ds argument. As regards dose arguing dat BOFIA was IBB's decree, fyi, it was amended in 2O03 and from BOFID(decree) it was changed to BOFIA(Act) @topic, I will try and get Vanguard later ds morning to see weda d article is d official opinion of the newspaper or an external article they published. I don't av any problem wt Vanguard for suspecting there is more to it than meet the eyes, but the Sanusi Lamido I know can not be a pawn in some people's political chess game. And moreover, anybody deeply following events in Nigerian banking system will know what Akingbola & Cecilia have been doing.Even a senior oga formerly wt Oceanic confirmed Mama's sharp practices. As for Akingbola, he should resign as CIBN president. I don't trust Jim Zenith and Tony UBA too. Jim has been strongly warned though. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sunnybobo3(m): 7:35am On Aug 15, 2009 |
Matters arising Why the haste to take the decisions when the so-called CBN audit has not been conducted in all Nigerian banks? Why did Sanusi not invite the banks to show them the results of the so-called audit and ask them how they think they could solve the problem; for xample, giving them a deadline to recapitalise? Why wield the axe so soon? These are indications that Sanusi is following a script. He says CBN will call local and international investors to invest in the banks. Why not allow the banks themselves to look for the investors? |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sagamite(m): 8:04am On Aug 15, 2009 |
Beaf: Are you bleeping high?? Adam Applegarth - CEO Northern Rock David Baker - Deputy chief executive Keith Currie - Treasury Director Andy Kuipers - Sales and Marketing Director Fred Goodwin - CEO RBS Tom McKillop - Chairman Are you bleeping high? You think they would put money in those firms and leave the same guys that messed it up to manage it? |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Sagamite(m): 8:10am On Aug 15, 2009 |
Sunny_bobo: And so? What dependence does the mismanagement of this 5 banks have to do with the others? Sunny_bobo: What makes you think that has not been done since the months the have been going cap in hand to beg for funds from CBN? Sunny_bobo: Why not? Sunny_bobo: This is a moronic conclusion, derivation and conjecture! Typical Nigerian half-baked, outspoken assertions. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by jaybee3(m): 8:16am On Aug 15, 2009 |
Sagamite:@ Sag, It seems you are on a one man mission to skool this loons. Hope you going to save the remaining fire in ya belly for footie today sha cos we need you marshalling our defense. Just to add to the quote, the UK government even went as far as harassing the RBS board so they can reverse fred the shred's excessive pension pot. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 8:20am On Aug 15, 2009 |
Sagamite: A liar is the closest thing to a thief. I challenge you to provide links to every one of their sack stories and who sacked them. When people resign in the UK, idiots in Nigeria carry rumuors that they were sacked (in this Internet age) ![]() Were you born an idiot or something? You've been raining abuses, yet foul language and can only come up with lies? Is this the best those paying you can come up with? Boy, you are boft daft and dishonest. Fool. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by jaybee3(m): 8:23am On Aug 15, 2009 |
@beaf What does forceful resignation equate to? do you know they sometimes send people on gardening leave? They are effectively technical sacking IMO |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by jaybee3(m): 8:28am On Aug 15, 2009 |
Extracts from the Independent website How the mighty are falling. The rise and fall of Sir Fred Goodwin is the classic tale of vaulting ambition which o'erleaps itself, of hubris brought low by the very qualities which led to such stellar success. After eight extraordinary years that have seen Royal Bank of Scotland (RBS) transformed from a dully reliable regional institution to the fifth largest bank in the world, Sir Fred's departure as chief executive is a condition of the lifeline offered by the bank's rescuers from the Treasury. On the way out: Felled banking giants *Sir Tom McKillop The Royal Bank of Scotland's chairman will leave at the annual general meeting in April without a pay-off. He is out because he presided over the board that endorsed the ABN Amro deal. Critics say that his lack of banking experience made him unable to stand up to his chief executive. Sir Tom, from Dreghorn, Ayrshire, was chief executive of AstraZeneca until 2006. *Lord Stevenson The HBOS chairman is also being held to account for the collapse of the 300-year-old institution. The cross-bench peer will forgo his salary of £710,000 and, like his chief executive, will leave when the Lloyds TSB deal is finalised. He is suffering for his board's strategy to grow through over- reliance on the UK property sector and wholesale funding. http://www.independent.co.uk/news/business/analysis-and-features/the-rise-and-fall-of-fred-the-shred-960336.html |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Beaf: 8:31am On Aug 15, 2009 |
Unfortunately for you guys, I am very conversant with the stories you're trying to twist. Thats why I challenged you to provide links; I want to know where the bank of England or UK govt sacked any banker. Everybody knows the UK is the worst hit country in this downturn, yet they didn't behave in these strange ways we're hearing from Nigeria. I challenge you guy's to provide the links. |
Re: Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal by Ibime(m): 9:00am On Aug 15, 2009 |
Beaf: Guy, stop making a fool of yourself. . . . Sir Fred the Shred as well as many others have been sacked by Mervyn King and Gordon Brown. . . . not to mention Obama sacking the CEO of general motors. . . . once again, I gbadun Sanusi for this move! |
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