$7 billion: I won’t apologise to Soludo – Falana

A senior lawyer, Femi Falana, on Sunday said he would not apologise to former Central Bank Governor Chukwuma Soludo over his allegation that the ex-bank chief “dolled” out $7 billion government funds to bankers while he was in office.
Mr. Soludo has denied the allegation, saying he acted right in his dealings as Central Bank chief.
Mr. Falana, however, said he based his statement on facts made available by the Central Bank during Mr. Soludo’s stewardship.
Read Mr. Falana’s full statement below:
On October 3, 2006, the Central Bank of Nigeria under the management of Professor Chukwuma Soludo gave a loan of $7 billion to 14 commercial banks in Nigeria. The loan was confirmed by the Head of the CBN Corporate Affairs , Mr. Festus Odoko when he announced that “deposits worth $7 billion representing the apex bank’s share of the foreign reserves estimated at about $38 billion has been released to the consortium of bankers.” (The Guardian newspaper of 5/10/2006)
Barely four days later, a respected economist, Mr. Henry Boyo challenged the illegal claim that the $7 billion was a “share” of the CBN in the nation’s foreign reserves. Since the funds belong to the three tiers of Government by virtue of section 162 of the Constitution Mr. Boyo rightly stated that “the Senate and the House of Representatives would have defaulted in their constitutional duties if CBN is not invited to defend why $7 billion of our reserves should be ‘given’ to 14 banks without oversight approval.” (Vanguard newspaper of October 9, 2006).
Having confirmed that the banks have failed to liquidate the said $7 billion loan I have asked the Economic and Financial Crimes Commission to investigate the illegality of the loan and recover same together with other huge funds which have been criminally diverted or withheld from the Federation Account. With respect, the denial of the $7 billion loan by Professor Soludo has supported the request for a thorough investigation of the allegations contained in my petition. However, having regard to the facts and circumstances of the controversial loan, Professor Soludo may wish to direct his demand for apology to Mr. Festus Odoko!

KingsCity:
The SAN is obviously ignorant of the functions of the CBN

Key funtions of the CBN you learn in elementary economics : the CBN is both the banker's bank as well as the lender of last resort


Just like individuals can borrow from commercial banks, banls can borrow from the CBN


It is well within the functions of CBN to lend to commercial banks...it is character assasination to term it stealing as if Soludo collected the money and put it into his own pocket

Businessideas:


Apparently, you didn't read the explanation by Falana and Henry Boyo.
The money was taken from the money held in trust for the nation and if such amount has to be loaned, it requires the approval of the real owners of the money with the constitutional oversight by the national assembly.
Due to this lack of due process, the whereabouts of the $7billion can not be explained
These are private businesses for God's sake, Is it that Soludo "dashed" them $7billion as if it's his father's money? And we're opposing creating grazing reserves for herdsmen because they are private businesses yet no qualms when Soludo stole and illegally shared our $7billion to private businesses?Soludo should have ensured that this money is returned to the federation Account even with interest.
Now both the principal and accrued interest for the past 10 years can not be located yet these 14 banks are not perturbed!!
Terrible things are happening in this country for God's sake. Even by the US standard, $7 billion is a lot of money!!

fulaniHERDSman:

Exactly!
They unnecessarilly get excited over necessary grazing reserves but put their heads in the sand when faced worse fraudulent act. Soludo must be jailed

Businessideas:


Cecilia Ibru-led Oceanic Bank, Erastus Akingbola -led Intercontinental Bank and Pat Utomi 'S Bank PHB are no more. It means three of these 14 banks had already packed up and only God knows how their own share of the loot would be traced.
Or how does one explain the case of Access Bank that actually "collected double portion " because they collected and inherited Intercontinental Bank's portion
Which bank inherited Oceanic Bank sef?

SamuelAnyawu:
Soludo remains the worst and most corrupt Governor in CBN. He sacked and retired several CBN staff at his will.


CBN staff remain loyal to Lamido Sanusi who promoted all staff when due and ensured the best welfare packages for them...


Ask any CBN staff about the two governors

Businessideas:


Apparently, you didn't read the explanation by Falana and Henry Boyo.
The money was taken from the money held in trust for the nation and if such amount has to be loaned, it requires the approval of the real owners of the money with the constitutional oversight by the national assembly.
Due to this lack of due process, the whereabouts of the $7billion can not be explained
These are private businesses for God's sake, Is it that Soludo "dashed" them $7billion as if it's his father's money? And we're opposing creating grazing reserves for herdsmen because they are private businesses yet no qualms when Soludo stole and illegally shared our $7billion to private businesses?Soludo should have ensured that this money is returned to the federation Account even with interest.
Now both the principal and accrued interest for the past 10 years can not be located yet these 14 banks are not perturbed!!
Terrible things are happening in this country for God's sake. Even by the US standard, $7 billion is a lot of money!!

Businessideas:

Really? I actually thought his reign at CBN then effectively restored the CBN's authority to carry out its oversight and tame the banks.
I only knew of his disagreement with The Nigerian Mints over his decision to give the contract of printing new currency notes to a foreign firm even when the management of The Nigerian Minting company insisted that they can handle the job

KingsCity:


The CBN also functions as the government's bank

The CBN is free to lend deposits kept with them if they so choose. No bank including the CBN is meant to just keep funds deposited with it in it's vaults. The simple reason being that idle cash produces nothing

Businessideas:

Nobody is arguing about the right to Loan to banks. It's like saying that The Nigerian Police doesn't have the right to kill a criminal.
The point is that due process was subverted and the whereabouts of the $7billion and accrued interest can not be traced and the CBN has no record that these $7billion and the interest has been paid!!!!
That explains why EFCC is being called in and clearly, since it took place under Soludo, he will have a case to answer.
This money should be traced and recovered.The national assembly should have a public enquiry on it because I believe this $7billiion amount is more than the MTN fine the national assembly was bothering itself with

KingsCity:


If CBN gave loans to banks under Soludo and it wasn't repaid until the end of Soludo's tenure. then his successors could and should have pursued recovery. Soludo neither dashed them money nor did he write off their indebtedness. I don't see how CBN giving loans to commercial banks as they are empowered to do under the law can be termed stealing by the Governor.

The CBN has a duty to protect commercial banks from failing because of its negative impact on the economy and on individual depositors

Businessideas:


Cecilia Ibru-led Oceanic Bank, Erastus Akingbola -led Intercontinental Bank and Pat Utomi 's Bank PHB are no more. It means three of these 14 banks had already packed up and only God knows how their own share of the loot would be traced.Yet these banks were trading with governments deposit until lately when TSA was introduced. So what exactly do Nigerian banks do?
Or how does one explain the case of Access Bank that actually "collected double portion " because they collected and inherited Intercontinental Bank's portion
Which bank inherited Oceanic Bank sef?

Royals1st:








For oceanic is ECO BANK

Businessideas:

It's stealing when you take what doesn't belong to you or take possession of things that belongs to someone else !
The money shared doesn't belong to the CBN,soludo or his family , it was held in trust for the federation(Federal,States and LGA), he knew it but still went ahead to illegally shareit without any input from the real owners of the money.It was even extended to foreign banks .Is it part of CBN mandate too to give loans to foreign banks?
The annoying part of it is that he was warned to desist from the illegality.He was so arrogant and clearly ignorant of the law too! Fortunately,ignorance is not an excuse to break the law.
Why do you think the current CBN submitted it's budget to the current national assembly? It's because those loans need to appropriated by law. The CBN is the chief banker to the federation and holds our money in trust.
You are right about his successor not doing enough and that is why they should all be investigated. But regardless of the investigation, the original sin was committed by Soludo.

KingsCity:



Your problem same as Falana is ignorance.

Another function of the CBN is management of the country's external reserves


Reserves is different from revenues accruing to the CRF which the tiers of government are meant to share

I have an assignment for you: go learn about external reserves - how they come about and how they are managed

Businessideas:

Keep up with your ignorance and obscene mischief.You will soon tell the unbelievable story of how the ordinary CBN Act superceeds the country's national constitution.
It is abundantly clear that this is not about the functions of the CBN but a deliberate criminal attempt by someone to subvert due process in order to placate the 14 banks/suitcase bankers at the expense of the Nigerian people.
If you are a patriot and do not have anything to hide, you should join the call for the speedy recovery of this money with interest instead of playing at mischief.

KingsCity:


People like Soludo have worked very hard to earn their reputation. You dont just come up with wild and spurious allegations based ignorance of basic principles of economics and financial management

Falana may be a brilliant lawyer but lawyers have be known to be bad with figures. Managing the CBN is not all about law but advanced financial management and which Falana is ill-educated on

kingthreat:
Falana just wants to be in the news. Giving his one-sided legal opinion as usual.
The only true SAN Nigeria ever had was Chief Gani Fahwemini

Businessideas:

I'm sure you didn't read the report of Falana. He quoted the CBN itself and even Henry Boyo, the renowned economist who in those years shouted to high heaven that Soludo was running voodoo economics.
If you lend someone money up to a collosal amount as $7billion,will you not collect your money with interest?