UPDATED – Nigeria's Bank Firings, Audits and Related EFCC Activities

 

 

AUGUST 18, 2009

TABLE 1:  NIGERIA’S CBN ACTIONS ON FIVE BANKS ON FRIDAY, AUGUST 14, 2009

S/N	BANK	CUSTOMER DEPOSIT	OUSTED AS MD	IN AS INTERIM MDS & TURN-AROUND MANAGERS
1	Afribank Nigeria Plc	N217.97bn	Sebastian Adigwe	Nebolisah Arah
2	Finbank Plc	N391bn	Okey Nwosu	Mrs. Suzanne Iroche
3	Intercontinental Bank Plc	N1.1trn	Erastus Akingbola	Mahmoud Alabi
4	Oceanic Bank International Plc	N835.21bn	Mrs. Cecilia Ibru	John Aboh
5	Union Bank Plc	N682bn	Bartholomew Ebong	Mrs. Funke Osibodu

 

TABLE 2:  CBN’S AUDIT REPORT SITUATION

S/N	BANKS AUDITED & CLEARED	S/N	BANKS AUDITED & ACTION TAKEN AGAINST	S/N	BANKS CURRENTLY BEING AUDITED
1	Diamond Bank Plc	1	Afribank Nigeria Plc	1	Access Bank Plc
2	First Bank Plc	2	Finbank Plc	2	Bank PHB Plc
3	Guaranty Trust Bank Plc	3	Intercontinental Bank Plc	3	Citibank Plc
4	Sterling Bank Plc	4	Oceanic Bank International Plc	4	Ecobank Plc
5	United Bank For Africa Plc	5	Union Bank Plc	5	Equitorial Trust Bank Plc
				6	FCMB Plc
				7	Fidelity Bank Plc
				8	IBTC Standard Plc
				9	Skye Bank Plc
				10	Spring Bank Plc
				11	Standard Chartered Plc
				12	Unity Bank Plc
				13	Wema Bank Plc
				14	Zenith Bank Plc

 

 

TABLE 3:  REPORTED WANTED OR ARRESTED BY EFCC* [August 18, 2009]

S/N	Name	Position
1	Sebastian Adigwe	(Ex-GMD/CEO of Afribank); [ALREADY IN EFCC DETENTION?]
2	Ben Nwoji	(ex-MD)of Afribank Trustees Limited.
3	Okey Nwosu	(Ex-GMD of Finbank);  [ALREADY IN EFCC DETENTION?]
4	Alex Duruike	(Ex-MD of First Inland Securities);
5	Ernest Duruike	(ex-MD First Inland Securities),
6	Emmaneul Okoji	(ex-MD First Inland Capital Ltd),
7	Erastus Akingbola	(Ex-GMD/CEO of Intercontinental Bank Plc);
8	Ayodele Thomas	(Ex-MD of Intercontinental Capital Market Limited);
9	Abiodun Taiwo	(ex-MD Intercontinental Finance & Investment Ltd)
10	Abubakar Magaji	(ex-MD Intercontinental Trustees Ltd).
11	Adeboye Adewoyin	(ex-MD Intercontinental Securities Ltd),
12	Cecilia Ibru	(Ex-GMD/CEO of Oceanic Bank);
13	Felicia Shonubi	(Ex-MD of Oceanic Trustees Limited);
14	Reginald Elya	(ex-MD Oceanic Securities International Ltd),
15	Peter Ololo,	former managing director of Falcon Securities Limited, [ALREADY IN EFCC DETENTION?]
16	Bartholomew Ebong	(Ex-Group MD of Union Bank);  [ALREADY IN EFCC DETENTION?]
17	Henry Onyemem	(ex-MD of Union Trustees  Limited);

 

*Created from SaharaReporters list

List of wanted former bank officials: Bartholomew Ebong (Ex-Group MD of Union Bank); Henry Onyemem(ex-MD of Union Trustees  Limited); Erastus Akingbola(Ex-GMD/CEO of Intercontinental Bank Plc); Ayodele Thomas(Ex-MD of Intercontinental Capital Market Limited); Okey Nwosu(Ex-GMD of Finbank); Alex Duruike(Ex-MD of First Inland Securities); Cecilia Ibru(Ex-GMD/CEO of Oceanic Bank); Felicia Shonubi(Ex-MD of Oceanic Trustees Limited); Sebastian Adigwe(Ex-GMD/CEO of Afribank); and Ben Nwoji(ex-MD)of Afribank Trustees Limited. Peter Ololo, former managing director of Falcon Securities Limited, Adeboye Adewoyin (ex-MD Intercontinental Securities Ltd), Ernest Duruike (ex-MD First Inland Securities), Emmaneul Okoji (ex-MD First Inland Capital Ltd), Felicia Shonubi (ex-MD Oceanic Trustees), Reginald Elya (ex-MD Oceanic Securities International Ltd), Ayodele Thomas (ex-MD Intercontinental Captial Ltd), Abiodun Taiwo (ex-MD Intercontinental Finance & Investment Ltd) and Abubakar Magaji (ex-MD Intercontinental Trustees Ltd).  [Names in red are repeated]

 

  

TABLE 4:  THE BIGGEST DEBTORS’ TALE TO TELL

 

S/N	Bank	# Indebted	Debt Total	% Total	Top 2 Biggest Debtors
1	Afribank Nigeria Plc	28	N141.856 billion	19 per cent;	(1)Kolvey Company Limited, which borrowed N16.5 billion   (2) Rehoboth Assets Limited through which five of the Ajaegbu families got N28.598 billion   http://www.economicconfidential.com/sept09debtorafribank.htm
2	FinBank Plc	104	N42.445 billion	5.6 per cent	(1)Aquitane Oil and Gas which borrowed N3.656 billion   (2) Falcon Securities through which it’s Managing Director, Peter Ololo, who secured N3.49 billion loan   http://www.economicconfidential.com/sept09debtorafribank.htm
3	Intercontinental Bank Plc	35	N210 .903 billion	28 per cent;	(1) ASCOT OFFSHORE NIGERIA LIMITED [44,670,080,228.83][JOEY CHUMA OBUE, SAMUEL AIKHIONBARE, HENRY IMASEKHA AND EMMANUEL NWACHUKWU]   (2) ROCKSON ENGINEERING LIMITED [36,989,685,692.84][ ENGR. J. I. A. ARUMEMIIKHIDE AND MRS. MARY E. ARUMEMI-IKHIDE]   http://www.economicconfidential.com/sept09debtorinterbank.htm
4	Oceanic Bank Plc	32	N278.204 billion	37 per cent;	(1)Notore Chemical Industries Limited, which borrowed N32.392 billion   (2)  Rahamaniyya Global Resources through which Abdul Rahaman Musa Bashir got N28.598 billion   Full List: http://www.economicconfidential.com/sept09debtoroceanic.htm
5	Union Bank of Nigeria Plc	22	N73.582 billion	9.8 per cent;	(1)Transnational Corp Plc, in which the Director-General of the Nigeria Stock Exchange (NSE), Dr. Ndi Okereke-Onyiuke is a director/major shareholder, which borrowed N30.863 billion on behalf of the company   (2) MTS First Wireless Limited through which Chief Lulu Briggs secured N9.849 billion   http://www.economicconfidential.com/sept09debtorunionbank.htm

.

For a full AUTHORITATIVE  list, see: http://www.nigerianmuse.com/important_documents/ CBN_advertorial2_on_bank_debtors.pdf    

 

Compiled in present form by NM.

—

 

http://www.reuters.com/article/usDollarRpt/idUSLI36634020090818?pageNumber=2&virtualBrandChannel=0&sp=true

UPDATE 2-Nigeria anti-graft police seek bank executives

Tue Aug 18, 2009 2:53pm EDT

 

* Anti-corruption police seek 19 executives

 

* Three already detained for questioning

 

* Possible share price manipulation, false accounting probed

 

(Adds background, details)

 

By Nick Tattersall

 

LAGOS, Aug 18 (Reuters) – Nigeria’s anti-corruption police said on Tuesday they were seeking 19 banking executives for questioning following a $2.6 billion bailout of five struggling financial institutions by the central bank.

 

Former chief executives from two of the rescued banks and one other executive had already been detained for questioning while the 16 others were being sought, a spokesman for the country’s Economic and Financial Crimes Commission (EFCC) said.

 

“We have threatened to declare them ‘wanted’ because we have been looking for them since yesterday. We have been able to find three,” EFCC spokesman Femi Babafemi said.

 

“We have to take statements from them to determine their level of culpability … They have all been watch-listed so it is difficult for them to escape out of the country,” he said.

 

The central bank last Friday injected 400 billion naira ($2.6 billion) into Afribank (AFRB.LG), Finbank (FIBP.LG), Intercontinental Bank (INBK.LG), Oceanic Bank (OCBK.LG) and Union Bank (UBNP.LG) and sacked their chief executives.

 

The banks had notched up bad loans totalling 1.14 trillion naira and the regulator said lax governance had left them so weakly capitalised they posed a threat to the banking system in sub-Saharan Africa’s second biggest economy.

 

Analysts say criminal charges could be brought if executives are found to have falsified accounts or breached share price manipulation rules by setting up subsidiaries as vehicles to trade their own stock and push the share price higher, or to have bet on the stock market using depositors’ funds.

 

Central Bank Governor Lamido Sanusi has promised to prosecute anybody found guilty of misconduct but has declined to comment on whether any specific infractions were exposed by central bank investigations.

 

“Anybody, managing director, executive director, director, officers, debtor, anybody that is found that has broken the law will be prosecuted to the full extent of the law,” Sanusi said when he announced the bailout.

 

 

POSSIBLE SHARE PRICE MANIPULATION 

 

Between them the five institutions account for 40 percent of banking sector credit in Africa’s most populous nation and the executives sought include members of Nigeria’s business aristocracy, long seen as almost untouchable.

Babafemi said former Union Bank chief executive Bartholomew Bassey Ebong, former Finbank chief executive Okey Nwosu and the chief executive of Falcon Securities, Peter Ololo, were already answering EFCC questions.

“They are in custody in our Lagos office,” Babafemi said.

Nigeria’s banks saw explosive balance sheet growth in the wake of consolidation four years ago, going on massive capital raising sprees which increased their capacity to lend to companies and individuals. Risk management did not keep pace.

The loans included credit to speculators on the stock market .LAGLG, down more than 60 percent from its peak in March 2008.

They also including unsecured financing to fuel importers who have had to contend with a sharp fall in global oil prices from above $140 a barrel last year to half that level.

The $7.6 billion of bad loans notched up by the five banks is roughly equivalent to the combined annual income of Nigeria’s poorest 20 million people, who each live on around $1 a day. (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Additional reporting by Camillus Eboh in Abuja; Editing by Sophie Hares)

 

 

http://www.saharareporters.com/index.php?option=com_content&view=article&id=3496:efcc-arrests-bank-officials-qdeclaresq-14-others-wanted-&catid=1:latest-news&Itemid=18

 

Written by Saharareporters, New York

Tuesday, 18 August 2009 15:48

The Economic and Financial Crimes Commission (EFCC) is claiming to have arrested four officials of Nigeria’s so-called “troubled banks” last night. It also says it has declared 14 other persons wanted. But while the impression is being given that the arrested officials are the heads of the banks that were dismissed a few days ago, the claim is meeting with a sceptical Nigerian public. 

The EFCC spokesperson, Mr. Femi Babafemi said the agency was trying to locate Mrs. Cecilia Ibru, the CEO of Oceanic Bank, who is believed to be bank-rolling the war to reverse the auditing of banks in conjuction with former Delta governor, James Ibori and Nigeria’s Attorney-General, Michael Aondoakaa.  That seemed to have been meant as a warning that it is incorrect of Nigerians to think that the EFCC has arrested Mrs. Ibru, a member of one of Nigeria’s most powerful families.

Sources told Saharareporters that the EFCC was called in by the Governor of the Central Bank, Lamido Sanusi, to stop some forces that were threatening to use a federal high court judge to scuttle the continuation of the CBN’s audit of banks and Sanusi’s “bank reforms” which led to the removal of the five bank CEOs.

    Those arrested today are said to be the CEOs of Afribank (Sebastian Adigwe), Union bank (Bartholomew Ebong) and Finbank (Okey Nwosu), as well as the MD of a subsidiary of Finbank , Falcon securities (peter Ololo).  Those declared wanted, according to the EFCC, are mostly managers of subsidiaries of the five banks.

    Meanwhile, more revelations have come to light that James Ibori owed Oceanic, InterContinental and Afribank substantial amounts of money on non-performing loans.

    The EFCC action is being received with derision and contempt by many observers who have come to know the agency, under the management of Mrs. Farida Waziri, as a conniving, toothless bulldog. Critics today pointed to the arrest of Zenith Bank’s Jim Ovia earlier in the year over offenses of money laundering, nothing that that case went up in smoke, as has the case of such former governors as James Ibori.
    
    Zenith Bank is yet to be audited, but those familiar with his connections at the presidency said his bank would certainly pass the audit as Zenith has already got Yar’Adua’s chief economic adviser, Tanimu Kurfi, to nominate someone on his behalf, to whom has been given substantial shares.  Some sources said Mr. Ovia would resign before the EFCC can get to him, but his aides told Sahareporters this evening that he would not do that. 

Some analysts say that the recent international condemnation of the EFCC by United States Secretary of State, Hilary Clinton, may be responsible for the current activism of the EFCC.  But others noted that it is a ruse, pointing out that even the current arrests of the bank executives is full of holes, including the fact the EFCC is saying that the SSS “helped” arrest some of the wanted officials.

“Right there is a pre-planned escape clause by the EFCC,” one of them told Saharareporters in Abuja.

 List of wanted former bank officials: Bartholomew Ebong (Ex-Group MD of Union Bank); Henry Onyemem(ex-MD of Union Trustees  Limited); Erastus Akingbola(Ex-GMD/CEO of Intercontinental Bank Plc); Ayodele Thomas(Ex-MD of Intercontinental Capital Market Limited); Okey Nwosu(Ex-GMD of Finbank); Alex Duruike(Ex-MD of First Inland Securities); Cecilia Ibru(Ex-GMD/CEO of Oceanic Bank); Felicia Shonubi(Ex-MD of Oceanic Trustees Limited); Sebastian Adigwe(Ex-GMD/CEO of Afribank); and Ben Nwoji(ex-MD)of Afribank Trustees Limited. Peter Ololo, former managing director of Falcon Securities Limited, Adeboye Adewoyin (ex-MD Intercontinental Securities Ltd), Ernest Duruike (ex-MD First Inland Securities), Emmaneul Okoji (ex-MD First Inland Capital Ltd), Felicia Shonubi (ex-MD Oceanic Trustees), Reginald Elya (ex-MD Oceanic Securities International Ltd), Ayodele Thomas (ex-MD Intercontinental Captial Ltd), Abiodun Taiwo (ex-MD Intercontinental Finance & Investment Ltd) and Abubakar Magaji (ex-MD Intercontinental Trustees Ltd).

 

 

 

 

THIS DAY 

CBN Releases Names of Non-performing Debtors

•Guarantees foreign loans, Inter-bank rates crash
By Ayodele Aminu, 08.19.2009

In what is considered an effort to diffuse the blame on the liquidity challenge in the banking sector, the Central Bank of Nigeria (CBN) yesterday released the names of debtors – mostly shareholders/directors – who secured loans totalling N747 billion from the five banks whose executives were sacked last Friday.

A breakdown of the loans, which are classified as non-performing, is as follows: Oceanic Bank Plc, N278.204 billion or 37 per cent; Intercontinental Bank Plc, N210 .903 billion or 28 per cent; Afribank Nigeria Plc, N141.856 billion or 19 per cent; Union Bank of Nigeria Plc, N73.582 billion or 9.8 per cent; and FinBank Plc, N42.445 billion or 5.6 per cent.

The two biggest debtors to Intercontinental Bank are Ascot Offshore Nigeria Limited through which Henry Imasekha along with three others secured N44.67 billion and Rockson Engineering Limited through which Engineer J.1. Arumemi-Ikhide and his wife secured N36.989 billion.

Oceanic Bank on the other hand, has Notore Chemical Industries Limited, which borrowed N32.392 billion and Rahamaniyya Global Resources through which Abdul Rahaman Musa Bashir got N28.598 billion.

The two principal debtors to Union Bank are Transnational Corp Plc, in which the Director-General of the Nigeria Stock Exchange (NSE), Dr. Ndi Okereke-Onyiuke is a director/major shareholder, which borrowed N30.863 billion on behalf of the company and MTS First Wireless Limited through which Chief Lulu Briggs secured N9.849 billion.

Afribank has Kolvey Company Limited, which borrowed N16.5 billion and Rehoboth Assets Limited through which five of the Ajaegbu families got N28.598 billion.

The two key debtors to FinBank are Aquitane Oil and Gas which borrowed N3.656 billion and Falcon Securities through which it’s Managing Director, Peter Ololo, who is currently cooling off with the Economic and Financial Crimes Commission (EFCC) in Abuja secured N3.49 billion.

Meanwhile, the banking watchdog has said it would guarantee all foreign loans and correspondent banking lines to the five banks bailed out last Friday in a N420 billion rescue package.

In a statement, the CBN said it would soon organise a road show in London to explain its actions to investors and correspondent banks.

The banking watchdog explained that its action was aimed at strengthening the financial condition of the affected banks and to ensure the protection of depositors and creditors funds.

It also reiterated its commitments to ensuring the stability of the banking industry, stressing that it “will therefore not allow any bank to fail”.

In another development, inter-bank lending rate, which largely determines interest rate or cost of borrowing in the domestic economy, crashed last Monday.

Market operators attributed the crash to the N420 billion bailout package injected into the five undercapitalised banks last Friday by the banking watchdog.

THISDAY gathered that some of these banks – anticipating that they may not need the funds immediately – decided to play at the inter-bank market to earn some income.

Further investigations revealed that several billions of naira from the July Federation Account – that was posted to some banks yesterday, also had a dampening effect on the inter-bank market – where banks borrow funds from one another to meet their immediate needs.

THISDAY checks at the inter-bank money market yesterday indicated that banks lent to one another at a highly reduced rate with over night funds, which traded at 18 per cent per annum last Monday morning, falling to 9 per cent yesterday.

Ditto for call money, which dropped to 9 per cent after trading at 19 per cent.

Seven-day funds was 13 per cent compared to the earlier prevailing rate of 6.67 per cent; 30-day at 6 per cent compared to  22 per cent, while Open Buy Back (OBB) funds, which depended on the CBN’s Monetary Policy Rate, fell to 6 per cent from 8 per cent.

Inter-bank lending had tightened despite the fact that the banking watchdog reviewed some of its lending guidelines few weeks ago in a bid to boost liquidity and moderate interest rates in the economy.

The measures, which are geared towards injecting liquidity into the market, allow free use of Federal Government bonds as instruments for repo transactions with the CBN for tenors not exceeding 90 days.
The CBN also removed the restrictions it placed on the use of funds obtained from any of its lending windows for placement at the inter-bank market.

In the financial parlance, repo (Repurchase Agreement) is the sale of securities for immediate payment and the commitment by seller to buy the securities at a later date under an agreed term, while discount window is the outlet through which the CBN grants standing facilities and outright advances to the deposit money banks and discount houses.

 

 

 
http://www.economicconfidential.com/sept09monetarydebtors.htm

Economic Confidential, August 18, 2009
MONETARY
 
The List of Major Debtors of Non-Performing Loans in Five Banks 
The Central Bank of Nigeria (CBN) has released the details of major and largest debtors of non-performing loans of the five banks whose managements were sacked recently. The debtors include government agencies, corporate organisations and individuals in their personal capacities. Most of the directors are popular billionaires, politicians, retired military Generals among others.
 
The defaulting customers of the affected banks have been directed to pay the amounts without further delay their indebtedness, failing which the central bank would take all appropriate legal actions to ensure payment.
 
Out of the N210bn of the non-performing loan of the Intercontinental Bank Plc, the major and largest debtors as at May 2009 include Ascot Offshore Nigeria Limited which has as its directors Joey Chuma Obue and Samuel Aikhionbare owing N44bn, Rockson Engineering Limited that belongs to Engr. J.I.A. Arumemikhide having N36bn to offset, United Alliance Company of Mr. Aig-Imoukhede and Herbert Wigwe to refund N16bn, Rahamaniya Oil and Gas of Abdulrahaman Bashir with N12bn, Dansa Oil and Gas of Aliko Dangote and his brother, Sani Dangote with N8bn, Transcorp of Prof. Ndi Okereke-Onyiuke and others with N6bn, Lister Oil Limited of Alhaji Arisekola Alao to refund N5bn and Accountant General Special Project N14,5bn among others.
 
 
The major debtors of Afribank’s N141bn non-performing loans are Suleman Ibrahim of Kolvey Company that has Suleiman Ibrahim and Aisha Usman as director and owing the bank N16bn, Rehoboth Assets Limited of Chudi Ajaegbu to refund N15bn, Resolution Trust and Invest of Patience Orighommesan and Sarah Oritse to repay N12bn, Petosan Property and Dev of the same Patience and Sarah to pay another 10bn, Larix Nig Ltd of Alhaji idah to pay N6bn, Bro Works of Alhaji Ibrahim N5bn, Falcon Securities Limited that has Peter Ololo as MD to offset N29bn and African Petroleum of Femi Otedola to refund N12bn among others.
 
 
The major debtors in Union Bank nonperforming loans of N73bn are Transnational Corp where Dr. Ndi Okereke Onyiuke as prominent director to settle the indebtedeness of N30bn, MTS FIRST WIRELESS LTD of Chief Lulu Briggs with N9bn, Zenon of Femi Otedola N6bn, IRS Airlines of Khalifa Isiaka Rabiu N3bn, Avian Spec Ltd N1.7bn, Communication Trends Ltd of Engr. Uzo Udemba to offset N1.1bn, DJONES of Sir J. O. Eze N524mn. Others include Chanchangi airlines N423mn, Ikeja Hotels Plc N1,2bn, Bao Yao Huan N3,1bn, MINAJ Holdings N1,6bn, Ibeto Industries N2,4bn among others.
 
The major debtors in Oceanic Bank’s nonperforming loan of N278bn are Notore Chemical Industries Ltd and African Finance Corporation N32bn, Rahamaniya Global Services of Abulrahman Musa Bashir N28bn, LV Development of Michael Onasanya N2.7bn, Dangote Industries of Aliko Dangote N2.5bn, Falcon Securities of Peter Ukoritsemofe Ololo N22bn, Spark-West Steel Industries of Niyi Oyedele N18bn, Mid-Western Oil and Gas of Onajite Okoloko and engr. Adams Okoene N23bn, Oando of General Magoro and others N7bn, Honeywell Group of Oba Otudeko N1.6bn, BFCL Assets and Securities Of Okoro and Ibru N4bn, Global Fleet of Jimoh Ibrahim N14bn, Zarm Poultry of Muftau Gbadamosi N8.3bn, Imad Oil and Gas of Bashir and Abba Dasuki N10bn, Delta State N6.4bn, NITEL N7bn, Obat Oil and Petroleum of Prince Fedrick Akinrutan among others.
 
The major debtors in FINBANK’s nonperforming loans of N42bn are Aquitane Oil and gas Limited of Ike Okolo and Dahiru Wada N3.6bn, Falcon Securities of peter Ololo and Senator Jonathan Tunde N3bn, Spring Trust 1,9bn, Jevkon Oil and Gas N1.6bn, Reliance telecommunication N800m, Ebonyi State 587mn, Intercellular Nig N157mn and Ararume Godwin Ifeanyi N158mn among others.
 
The Tables of Defaulters
Major Debtors of Intercontinental Bank Plc
Major Debtors of Union Bank
Major Debtors of Afribank
Major Debtors of Oceanic Banks
Major Debtors of Finbank.