Senate Names Adedoyin, Offor, Bayero, Others in N53.3bn Insider Credit Abuse




 
THIS DAY
 
 
Senate Names Adedoyin, Offor, Bayero, Others in N53.3bn Insider Credit Abuse • Gulf Bank former director owes N7bn

 

TABLE OF FAILED BANK DEBTORS

S/N

Name of Debtor

Amount Owed

Bank

1

Adeyeba Adekunle Johns  [former director of failed Gulf Bank]

 N7b

 (Gulf Bank)

2

Alhaji Sanusi Ado Bayero

 N45.003 million

 (Gulf Bank)

3

Babajide Rogers [former Gulf Bank Manager]

 N11.874 million

 (Gulf Bank)

4

Muyiwa Osho 

 N242.1 million

 (Gulf Bank)

5

Ebitimi Banigo [Former Minister of Science and Technology, owner of liquidated All States Trust Bank, now Federal Airports Authority of Nigeria (FAAN) Chairman]

 N3.2b with N10 million recovered  

 (All States Trust Bank)

6

Professor Nta Henshaw

 N17.9 million

 (All States Trust Bank)

7,8

Alh I.Aminu Saleh & A. Aminu Saleh [Eagle Bank former directors]

N26.918 million

(Eagle Bank)

9

Paul Achimugu 

 N5.5 million

 (Eagle Bank)

10

Alh K.A. Olatunde

 N13.3 million

 (Trade Bank)

11

Alh S.Y.Abdullahi

 N1.25bn

 (Trade Bank)

12

Alh Sha’aba Lafiagi [former Governor of old Kwara State]

 N1.156 million [unlimited personal guarantee]

 (Trade Bank)

13

David Chuka Nwosu

 N3.4 million

 (Trade Bank)

14,15

Prince S. Adedoyin [former City Express Bank Chairman] & Mrs. Sola Adeoti [former City Express Bank Chief Executive Officer]

 N5.584b with N453 million recovered

(City Express Bank)

16

Angela Onyeador

 N30.7 million [legal mortgage]

(Assurance Bank of Nigeria plc)

17

Chuka Nwokoko

 N31.9 million

(Assurance Bank of Nigeria plc)

18

Moore Onyekaba

 N3.6 million

(Assurance Bank of Nigeria plc)

19

Sir Emeka Offor [Chrome Services and Related Companies Chairman]

N7.5bn with N3.8bn recovered [N3,850,016,620 – personal guarantee of Offor and 100,000 units of ordinary shares of Environmental Remediation Holding Corporation, U.S.A. and another N3,850,016,620 loan without guarantee]

 (African Express Bank)

20

Chief Victor Odili [of Colodense Nigeria Limited]

 N54.3 million [fixed and floating debenture on the assets of the company]

 (Liberty Bank)

21

Dr. T.C. Osanakpo  [of Rison Palm Limited]

 N43.6 million

 (Liberty Bank)

22-27

F.EC. Adiele, Chief Jude Akpunku, Dr. Sam Eke, Nnamdi Anyaehie, Nze Maduako

 N9.3bn

 (Hallmark Bank)

 

 

  

 

28

J.I. Abulime

 N5.8 million

 (Lead Bank)

29

Mallam Saleh Jambo

 N17.2 million

 (Lead Bank)

30,31

Captain Onu & Chief Dubem Onyia [former Minister of State for Foreign Affairs] – both of of Easy Link Aviation

 N26.6 million

 (Lead Bank)

32

Sen Chris Adighije

 N1.9 million

 (Metropolitan Bank)

33

Sen Mike Ajaegbo 

 N210 million

 (Metropolitan Bank)

34

Chief (Mrs.) R. Adiukwu-Bakare [former Progressive Peoples Alliance (PPA) Governorship candidate]

 over N1.093 billion

 (Metropolitan Bank)

35

Great Ogboru

 N799.7 million

 (Metropolitan Bank)

36

Oladapo Sarumi [former Minister of Information]

 N3.8 million

 (Metropolitan Bank)

37

Chief S.O. Bakare [Oluwalogbon Motors Chairman]

 N800 million

 (Metropolitan Bank)

 38      Ms. Funke Adedoyin                                                N5.13 billion

 

From Sufuyan Ojeifo in Abuja, 07.08.2009

At last, the Senate Committee on Banking, Insurance and Other Financial Institutions yesterday made good its threat to name former directors of 13 failed banks who were involved in insider credit abuse that led to the banks’ failure.

The former directors of the failed banks collectively owed the failed banks N53.3 billion out of which the Nigeria Deposit Insurance Corporation (NDIC) has so far recovered a paltry N4.722 billion.

Former Minister of Science and Technology, Chief Ebitimi Banigo; former Minister of Information, Chief Dapo Sarumi; former Governor of old Kwara State, Alhaji Shaaba Lafiagi; an industrialist, Prince Samuel Adedoyin; a businessman, Sir Emeka Offor; and former Minister of State for Foreign Affairs, Chief Dubem Onyia, featured in the list.

Former presidential aspirant, Mallam Saleh Jambo; ex-Lagos State commissioner, Chief Remi Adiukwu-Bakare; her husband, Chief Stephen Bakare; Senator Chris Adighije; Senator Mike Ajaegbo; Chief S.O. Bakare; Chief Great Ogboru; Sir Victor Odili;  Mr. Paul Achimugu; Mr. Adeyeba Adekunle Johns; Chief C.M. Ibeto; Alhaji Abbati Aminu Saleh; and Ibrahim Aminu Saleh among many others, also featured in the list.

Although, the name of foremost industrialist and richest man in the country, Alhaji Aliko Dangote, featured in the list as having received a credit of N650 million from the failed Liberty Bank in the name of Bullion International and Dangote Group of Companies, the NDIC indicated under recoveries made that he had liquidated the entire loan.

Chairman of the Committee, Senator Nkechi Nwaogu, named the affected former directors on the floor of the Senate shortly after the consideration of the Committee’s report of the public/investigative hearing on the agonies of the depositors of the failed banks and financial institutions.

This was consequent upon the approval by the Senate of the fifth recommendation contained in the 12-page report in which the committee was asking for its (Senate) mandate to publish the names of those involved in the insider credit abuse.

The Upper House, in approving the recommendation, directed that Nwaogu should proceed immediately to reel out the names contained in a tentative report presented to the committee by the NDIC.

The report, signed by NDIC Board Director/Director, Legal Department, A.B. Nyako, entiled: “Re: Schedule of Insider Credit of Banks Closed on 16th January, 2006,” said: “We refer to your letter dated 25th June, 2008 in respect of the above subject and forward herewith, the attached updated schedule of insider credits of 13 closed banks as at June 2008.

“Please note that in view of the fact that the accounts are insider related, the records are constantly being reviewed and reconciled. Accordingly, some of the figures reported are tentative.”

By reading the names on the floor, Nwaogu and members of her committee enjoyed parliamentary immunity. No legal action can be instituted against them.

Nwaogu was, however, hesitant despite enjoying legislative immunity, to release the names. There was mild drama before she declassified the list.

Many senators, including Olorunnimbe Mamora, Bassey Ewa-Henshaw, Ahmad Lawan and Ayogu Eze, supported the disclosure of the insider credit abusers, while a few including Senator Joseph Akaagerger initially opposed on the ground that some of the former directors are now chairmen of boards of some Federal Government agencies.

Mamora said: “A lot of violation and disregard for rules was carried out by the banks executives. There must be mechanism for enforcement of rules to bring this people to book.”

Lawan stated: “What happened in the bank was a betrayal of public trust. It was abuse of trust that people would put their money and because some people were privileged to know some directors, they would take money without due process, without even paying back.”
Senate President David Mark ruled that Nwaogu should read out the names, declaring that the Senate as an institution must be upright in the fight against corruption.

He said failure to announce the names of the creditors would amount to shielding corrupt people in the society. Nwaogu spent about 30 minutes reeling out the names and the details of the credit and recoveries made by the NDIC.

Some of the details reeled out by Nwaogu indicated that the highest insider credit abuser was a former director of failed Gulf Bank, Adeyeba Adekunle Johns, who got about N7 billion.

Banigo, former Chairman of failed All States Trust Bank, got about N3.2 billion with only N10 million recovered from him so far.
The remaining outstanding of about N11.8 billion was got by companies against whom no directors’ names were indicated. An individual (Prof. Nta Henshaw) got N17.9 million, bringing the outstanding balance to N15,170, 852,591.19.

Others are: Eagle Bank former directors – Alhaji Ibrahim Aminu Saleh and Abbati Aminu Saleh (N26.918 million) – who were personally guaranteed by their father and former Secretary to the Government of the Federation, Alhaji Aminu Saleh; and Paul Achimugu (N5.5 million), among others.

Trade Bank: Alhaji K.A. Olatunde (N13.3 million); Alhaji S.Y. Abdullahi (N1.25 billion); Lafiagi (N1.156 million) and David Chuka Nwosu (N3.4 million), among others.
Gulf Bank: Alhaji Sanusi Ado Bayero (N45.003 million); Babajide Rogers (N11.874 million); and Muyiwa Osho (N242.1 million).
City Express Bank: Prince Samuel Adedoyin and Mrs. Sola Adeoti (who both got N5.584 billion out which N453 million has been recovered so far).
Assurance Bank of Nigeria Plc: Angela Onyeador (N30.7 million); Chuka Nwokoko (N31.9 million); and Moore Onyekaba (N3.6 million), among others.
African Express Bank: Sir Emeka Offor through his Chrome Oil Services and other related companies got N15 billion and has repaid over half of the sum taken as loan.
Offor however, said he had defrayed his debt to less than N900 million and that he was at the verge of offsetting the balance when the report was made public by the Senate.
Liberty Bank: Chief Victor Odili (got N41.1 million; N10.6 million and another N2.6 million got in the name of Colodense Nigeria Limited) and Dr. T.C. Osanakpo (N43.6 million got in the name of Rison Palm Limited).
Hallmark Bank: Alhaji B.I. Bunu, Chief F.E.C. Adiele, Chief Jude Akpunku, Dr. Sam Eke, Nnamdi Anyaehie, Nze Maduako and others got a total of N9.3 billion.
Lead Bank: J.I. Abulime (N5.8 million); Mallam Saleh Jambo (N17.2 million); Captain Onu and Chief Dubem Onyia (both got N26.6 million in the name of Easy Link Aviation).
Metropolitan Bank: Senator Chris Adighije (N1.9 million); Senator Mike Ajaegbo (N210 million)’ Chief (Mrs) Remi Adiukwu-Bakare (over N1.093 billion); Great Ogboru (N799.7 million); Oladapo Sarumi (N3.8 million); and Chief S. O. Bakare (about N800 million).

After she rounded off and laid the report on the table of the Senate, Senator Enyinaya Abaribe (PDP, Abia South) raised the alarm that Nwaogu’s mobile phone was already being inundated with text messages threatening her life.

Mark, however, assured her that the Senate would request the Inspector General of Police (IGP) to provide her and members of the committee with adequate security to protect them.

He said the Senate was proud of them and that the Upper House would not abandon them after having done a great job in the interest of the nation.

According to him, “You have performed wonderfully. I commend you for the courage to bring this to limelight. You do not need to be afraid for what you have done for your country as those that have sent you the text messages should first think twice about their actions.
“We stand by you; we are together in this and we take full responsibilities for this report. It is a far-reaching report. We will do what we have to do. We must play by the rules. Those names here should be ashamed of themselves.”

Meanwhile, the Senate approved the other 14 recommendations by the Nwaogu-led Committee.

For instance, it recommended that the NDIC and all banks involved in the purchase and assumption (of failed banks) should embark on renewed public awareness and sensitisation campaign in the print and electronic media on the payment procedures to enable depositors in pre-and post consolidation failed banks, come forward for their deposits.

It also recommended that the Central Bank of Nigeria (CBN) should re-examine the practice under “Purchase and Assumption” whereby assuming banks are allowed to cherry pick the good assets of failed banks and leave only the government to take responsibility for the bad ones.

In addition, it recommended that the Senate should direct the NDIC to come up with a plan for immediate payment of all depositors irrespective of the pending court cases and to put a definite deadline for completion of the process.

Debtors to Failed Banks…

Adeyeba Adekunle Johns
N7b (Gulf Bank)
Alhaji Sanusi Ado Bayero
N45.003 million
Babajide Rogers
N11.874 million
Muyiwa Osho
N242.1 million
Ebitimi Banigo
N3.2b with N10 million recovered
(All States Trust Bank)
Professor Nta Henshaw
N17.9 million
Alh I.Aminu Saleh & A. Aminu Saleh – N26.918 million (Eagle Bank)
Paul Achimugu – N5.5 million
Alh K.A. Olatunde
N13.3 million (Trade Bank)
Alh S.Y.Abdullahi
N1.25bn
Alh Sha’aba Lafiagi
N1.156 million
David Chuka Nwosu
N3.4 million
Prince S. Adedoyin & Mrs. Sola Adeoti
N5.584b with N453 million recovered (City Express Bank)
Angela Onyeador
N30.7 million (Assurance Bank of Nigeria plc)
Chuka Nwokoko
N31.9 million
Moore Onyekaba
N3.6 million
Sir Emeka Ofor- N7.5bn with N3.8bn recovered (African Express Bank)
Chief Victor Odili
N54.3 million (Liberty Bank)
Dr. T.C. Osanakpo – N43.6 million
Alh B.I. Bunu, Chief F.EC. Adiele, Chief Jude Akpunku, Dr. Sam Eke, Nnamdi Anyaehie, Nze Maduako
N9.3bn (Hallmark Bank)
J.I. Abulime – N5.8 million (Lead Bank)
Mallam Saleh Jambo – N17.2 million
Captain Onu & Chief D. Onyia
N26.6 million
Sen Chris Adighije
N1.9 million (Metropolitan Bank)
Sen Mike Ajaegbo – N210 million
Chief (Mrs.) R. Adiukwu-Bakare
over N1.093 billion
Great Ogboru – N799.7 million
Oladapo Sarumi – N3.8 million
Chief S.O. Bakare – N800 million

INDEPENDENT

EFCC Awaits NDIC, CBN Reports On Failed Banks
By Lekan Fadeyi (Lagos) and Alexander Mede and David Agba (Abuja)

The Economic and Financial Crimes Commission (EFCC), has said it will not prosecute those fingered in the collapse of some Nigerian banks until the Nigeria Deposit Insurance Commission (NDIC) and the Central Bank of Nigeria (CBN) conclude investigation into the matter.

Senators had on Tuesday named those who abused their positions in banks, took loans worth N53.3 billion and refused to pay back, which made the banks go under.

The Nkechi Nwaogu-led Senate Committee on Banking, Insurance and other Financial Institutions, listed a former governor, a former minister, as well as former managing directors of banks as contributors to such collapse.

The committee noted with dismay that 50 banks failed because of the huge debts that were never paid, including 36, which crashed before consolidation in 2005, and 14 afterwards.

A letter dated June 27, 2008 sent to the Senate Committee by the Nigeria Deposit Insurance Corporation (NDIC), attached a list of ‘insider credits’ of 13 closed banks as at June 2008.

But it noted “in view of the fact that the accounts are insider related, the records are constantly reviewed and reconciled. Accordingly, some of the figures are tentative.”

Some of those listed, such as former City Express Bank Chairman, Samuel Adedoyin, and Aliko Dangote have said they are no longer owing as alleged by the committee.

FCC’s spokesman, Femi Babafemi stated that those expecting immediate prosecution of the accused may have to wait longer as he told Saturday Independent that the matter is still with the NDIC and CBN.

“We can’t do anything for now. It is still with the NDIC and CBN and we will move in when it is time,” he said

He told Saturday Independent that the commission is presently out of the picture.

According to him, the CBN and NDIC have the brief to handle the matter for now.

Babafemi, however, did not rule out the possibility that the anti-graft agency may step in and carry out its investigations with a view to bringing those found culpable to book even though he would not state clearly when.

“When we get to the point where we have to come in, we will,” he maintained, stressing that for now, the EFCC is not in the picture.

The Senate Committee on Banking, Insurance and other Financial Institutions recently submitted a report on its inquiry into why some banks failed in Nigeria, revealing that people accessed loans worth more than N53.3 billion from the banks and failed to pay back causing them to go under.

Those listed by the report to have contributed in the failure of the said banks include former Kwara State Governor, Mohammed Lafiagi (N1,156,776.57 – unlimited personal guarantee); Sanusi Ado Bayero (N45,003, 963.93); former Gulf Bank Managing Director, Babajide Rogers (N11,874, 216.56); Chrome Services and Related Companies Chairman, Emeka Offor (N3,850,016,620 – personal guarantee of Offor and 100,000 units of ordinary shares of Environmental Remediation Holding Corporation, U.S.A.), and another N3,850,016,620 loan without guarantee.

Others include Victor Odili (N41,103,498.56 – fixed and floating debenture on the assets of the company); N2,628, 979.05; N10,856,129.75, owner of liquidated All States Trust Bank now Federal Airports Authority of Nigeria (FAAN) Chairman, Ebitimi Banigo, Nta Henshaw, and others (N48,551,995,304.83); former Progressive Peoples Alliance (PPA) Governorship candidate, Remi Adiukwu-Bakare (N1,093,247, 535.40); Mike Ajegbo (N210,291,896.21): C. M. Ibeto (N643,340,680.92); and former Information Minister, Dapo Sarumi (N3,847,743.90).

Also mentioned are Oluwalogbon Motors Chairman, S.O. Bakare (N544, 585,269.86 and N21,311,398.59); former City Express Bank Chairman, Samuel Adedoyin; former City Express Bank Chief Executive Officer, Sola Adeoti; former Minister of State for Health, Funke Adedoyin (N5,131,275,864.01); and Angela Onyeador (N30,755,363.13 – legal mortgage).

 

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