UPDATED: CBN sacks boards of Union, Keystone, Polaris banks
The Central Bank of Nigeria has sacked the entire Board of Directors governing Polaris, Union and Keystone Banks.
The CBN announced the decision in a statement Wednesday night.
The action is expected to have followed the recommendation of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023.
Mr Obazee was appointed to probe the activities of the CBN and other relevant establishments.
The CBN in its statement Wednesday accused the banks of regulatory non-compliance, corporate governance failure, among others.
“This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f, (g), th) of Banks and Other Financial institutions Act, 2020,” a press statement by the bank’s spokesperson, Sidi Hakama, said.
The CBN said the banks’ infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that threaten financial stability, among others.
Mr Obazee, in a report he submitted to President Bola Tinubu on 20 December, had said the former governor of Central Bank of Nigeria (CBN), Godwin Emefiele, used “ill-gotten wealth” to establish TTB and used it to acquire Union Bank and Keystone Bank through some persons serving as his proxies.
Mr Obazee’s investigations revealed questionable ownership and loans linked to Mr Emefiele. He had also recommended that the banks be forfeited to the federal government.
Tropical General Investment Group (TGI)
In its defence, Tropical General Investment Group (TGI) explained that the USD500 million capital used to pay for the acquisition of Union Bank was transparent and unimpeachable; it also said due process was followed in the acquisition.
“The entire transaction was managed by highly reputed global financial institutions including Rothschild and Citibank.
“A USD 300 million loan was sourced from African Export-Import Bank (Afrexim) and the rest of the capital was sourced from the proceeds of TGI’s sales of its Chi Ltd business to Coca-Cola, all to finance the acquisition of Union Bank,” it said.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
The Central Bank of Nigeria has sacked the entire Board of Directors governing Polaris, Union and Keystone Banks.
The CBN announced the decision in a statement Wednesday night.
The action is expected to have followed the recommendation of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023.
Mr Obazee was appointed to probe the activities of the CBN and other relevant establishments.
The CBN in its statement Wednesday accused the banks of regulatory non-compliance, corporate governance failure, among others.
“This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f, (g), th) of Banks and Other Financial institutions Act, 2020,” a press statement by the bank’s spokesperson, Sidi Hakama, said.
The CBN said the banks’ infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that threaten financial stability, among others.
Mr Obazee, in a report he submitted to President Bola Tinubu on 20 December, had said the former governor of Central Bank of Nigeria (CBN), Godwin Emefiele, used “ill-gotten wealth” to establish TTB and used it to acquire Union Bank and Keystone Bank through some persons serving as his proxies.
Mr Obazee’s investigations revealed questionable ownership and loans linked to Mr Emefiele. He had also recommended that the banks be forfeited to the federal government.
Tropical General Investment Group (TGI)
In its defence, Tropical General Investment Group (TGI) explained that the USD500 million capital used to pay for the acquisition of Union Bank was transparent and unimpeachable; it also said due process was followed in the acquisition.
“The entire transaction was managed by highly reputed global financial institutions including Rothschild and Citibank.
“A USD 300 million loan was sourced from African Export-Import Bank (Afrexim) and the rest of the capital was sourced from the proceeds of TGI’s sales of its Chi Ltd business to Coca-Cola, all to finance the acquisition of Union Bank,” it said.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.