At Afex Bank on Broad Street, the office was deserted as there was no single staff on duty and the banking hall was absolutely empty with only two mobile policemen and a plain cloth security man on standby. Agitated customers were also seen shouting at the security personnel demanding to be paid.
In an article in the Guardian of Nigeria Thursday morning, an unsigned story that sounds like an extended statement to the effect that "The check is in the mail," the Alliance Bank grouo explains what is happenng while carefully praising the Central Bank of Nigeria. Here is that article:
Alliance Bank group hails CBN, explains position
THE Alliance Bank group made up of eight new generation banks on Tuesday hailed the CBN for the great work it has done so far in spite of all the odds but added that it has even stepped up the conclusion of its documentation stage with the CBN.
The group noted in Lagos that a documentation shortfall occasioned by the long weekend was responsible for the group's failure to meet certain basic deadlines and assured all its admirers who have been shocked by their apparent non-inclusion in the list of 25 that work is still in progress in their effort to reduce the pains of liquidation to most Nigerians who are battling to survive from a scorching economic imbalance and spiralling level of poverty.
The group noted that the documents, because of which the group lost a mention in the list have been fully addressed and had since reached the apex bank while only one of the major demands is not fully addressed but must be surely fulfilled in the next few hours so that the group can ask to be considered, as an outright liquidation of the banks does not do anybody any good.
The group noted that the documents have been delivered even though a part of it had been faxed to the bank last Friday in anticipation that the apex bank had been earlier briefed on the group's programme and constraints.
It was further explained that the licenses of the eight banks and the organogramme had since been sent while the funding part of the demand has received a great boost as inflows are still being received from debtors.
The first tranch of the funds paid into CBN escrow accounts was said to have been received while a heavier tranch which may put paid to the liquidity question may have been met on Tuesday.
The group noted that the decision to release the list without waiting for the group's final round-up was understandable as it was merely meant to satisfy the apex bank's consciousness for positive perception against the looming operational considerations of the banks.
As at Tuesday, the group still has about 1500 work force. The chairman of the group's Steering Committee, Mr. Fidelis Tilije, noted that the development belies the efforts the board of managing directors of the group has put in place but noted that that must go on to fulfil the demands of the apex bank knowing that their approach is of good intention to the economy.
In another article, the daily newspaper Punch of Nigeria today reiterates and elaborates upon copmments from the Central Bank of Nigeria yesterday to the effect that senior executives and chairman of 15 banks that were unable to consolidate to reach a threshhold of a com,bined 25 billion Naira in assets may soon be subject to arrest.
It is not known what role Sir Emeka Offor, the chairman of ERHC Energy and Nigeria's Chrome Energy Services, currently plays in Afex Bank, which is often described as one of his holdings. The bank was formerly known as African Express Bank.
Here is the Punch article from this morning's editions:
Insider dealings: SEC to monitor megabanks’ stocks • Failed banks’ chiefs under probe – EFCC
Oluyinka Akintunde and Tobi Soniyi
The (Nigerian) Securities and Exchange Commission has said that it will closely monitor activities of the newly recapitalised banks at the stock market.
Also, the Economic and Financial Crimes Commission has disclosed that it is already investigating directors, chief executives and chairmen of the 13 banks that failed to meet the N25billion recapitalisation requirement before the December 31, 2005 deadline.
The Director-General of SEC, Mr. Musa Al-Faki, who disclosed this in a new-year message to the staff of the commission on Wednesday, said the surveillance and monitoring would focus on detecting any manipulative trade, insider dealings, entry of laundered funds/monies from questionable sources into the stock market and other forms of trade abuses, that could erode investors’ confidence in the market.
He noted that insurance and reinsurance companies would also be monitored closely during the year, in view of their expected rush to the capital market to raise fresh funds to meet the Federal Government’s directive on recapitalisation.
He stressed that the commission’s decision to closely watch the banks and insurance firms was not connected with the development of the Nigerian capital market and the anticipated rise in market turn-over, following the entry of massive funds from the activities of pension fund managers and highly capitalised banks.
Al-Faki said, “As part of our strategic Blueprint 2005 – 2010, which will be released this year, special attention will also be given to the monitoring of consolidated banks to ensure a smooth take-off. The SEC is not taking anything for granted on this, especially when the various mergers that took place were the result of government policy.
“Experience in the industry has shown that even voluntary mergers/acquisitions concluded elsewhere have sometimes resulted into problems. We are, however, optimistic that the exercise conducted in Nigeria will succeed and the economy will be the better for it.
“The essence of our preparation for a more enhanced monitoring of these entities is just to be proactive as systemic problems are too unpleasant to contemplate. The commission will closely collaborate with the Central Bank of Nigeria in doing this.”
Meanwhile, the Director of Organisational Support of the EFCC, Mr. Abiodun Odude, confirmed in an interview with our correspondents in Abuja, on Tuesday, that the chairmen, managing directors and directors of the failed banks would be put on trial if found culpable in the ongoing investigation into the collapse of the banks.
He said, “The directors and their accomplices will be dealt with if they are found to have committed any economic crime. They are being investigated and if found guilty will be prosecuted.”
The CBN Governor, Prof. Charles Soludo, had in an interim report on the banking sector consolidation, which was presented to President Olusegun Obasanjo on December 21, 2005, disclosed that the bank had handed over the list of heavy and chronic bank debtors, asset strippers and mismanagers to the EFCC for further actions towards the recovery of the banks’ funds.
The list, according to the CBN governor, contains the names of bank chairmen, managing directors and directors who used their privileged positions to secure loans without repayment.
Bank funds, which ran into several billions of naira, were allegedly granted as unsecured loans to some of the top officials of banks and their cronies, thereby worsening the liquidity position of the banks.
“We have put together the list of such people and what they have taken, if they failed to pay back, the full weight of law would take its course. It is unfair for someone to take billions of peoples’ money illegally without an intention of paying such back,” Soludo had stated.
The PUNCH, Thursday, January 05, 2006
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