AKINGBOLA, IBRU AND COLLEAGUES (2)

Inevitably all these have led one to begin to wonder what all of these are about. Are we faced with an altruistic but overzealous attempt at righting wrongs in a very important sector of our national life? Or is this a mixed bag of personal vendetta, score-settling, pursuit of certain group agenda all wrapped in national service? There has been no shortage of tales in support of the latter; ranging from Soludo-era accusation of de-marketing campaign against Sanusi by one of the sacked CEOs, to alleged attempt by some of the CEOs to block Sanusi’s appointment – all unconfirmed and unproven. But into the fray comes a certain report, the front page lead story of the March 23, 2009 edition of Vanguard newspapers. Its uncanny semblance to what is currently playing out is, to say the least, interesting.

He was a mathematician and logician; a photographer and an Anglican deacon, but he made his name as an author in a most unlikely genre of literature. An intellectual by all account, Charles Lutwidge Dodgson’s claim to fame came through his exertions in a field that became known as Literary Nonsense authoring three books and some poetry. Curiously, I had Lewis Carroll, as he is more popularly known, author of Alice’s Adventures in Wonderland, on my mind, all week. And it’s all thanks to that famous line in chapter two of this classic: “‘Curiouser and curiouser!’ cried Alice (she was so much surprised, that for the moment she quite forgot how to speak good English).”

Events in the unfolding melodrama in Nigeria’s banking sector have left me in wonderment and caught me joining Alice in her resort to that “bad English” exclamation – curiouser and curiouser! You’ll probably understand why as I try to goose-step through this piece.

Let’s begin this way. Last week, I emphasised that the five bank CEOs and in particular the two reflected in the headline had not been accused of anything illegal; that all the issues were basically those of risk management, most of which are matters of judgement rather than law. That was why I closed with a number of questions that I believed were central to the situation at hand.

For ease of reference, the appropriate paragraph read partly: “Now, of the questions that have arisen…I consider the most important as how these banks got into the mess that the facts and figures suggest they are in? As I said earlier the risk management issues that have come to the fore would have their roots in a variety of soils. These might include inadequate expertise at risk evaluation, lack of depth in their management cadre; support for government policies or, greed for gain leading to the rush to the gravy trains that the capital market and oil and gas were up to 2007. Of course there are questions also of whether sacking of the executive boards of the banks was the only effective solution? Was appropriate care taken in determining the extent of bad loans? Could an organ of government like CBN have helped with recovery of policy-support loans where government is the ultimate debtor? Most germane of all, in relation to this column is the implication of these developments for the place of faith in decision making as corporate helmsmen – for those who profess their faith.”

Now consider how things have unfolded since then. Erstwhile Group Chief Executive of Intercontinental Bank, Dr Erastus Akingbola and Chief Mrs Cecilia Ibru of Oceanic Bank were declared wanted by the Economic and Financial Crimes Commission EFCC “in connection with fraudulent abuse of credit process, insider trading, capital market manipulation and money laundering running into billions of Naira.” As I write this, Akingbola’s whereabouts was still a subject of speculations, while Ibru turned herself in on Wednesday. Although they had not been arraigned as I turn in this piece, media reports had it that charges had been framed against them. Apart from those for which the two were declared wanted, others being bandied about in the media are securing foreign loans without consulting the Central Bank of Nigeria (CBN) and; indirect granting of loan to themselves through fronts.

Pause a bit, dear reader and contemplate this dramatic twist to the tale. Two of Nigeria’s most celebrated top flight bankers declared wanted like criminals! Akingbola, a minister of the gospel who runs God So Amazing Foundation through which millions of copies of a quarterly devotional, The Word for Today is distributed in Nigeria , Ghana, Cote D’Ivoire, Kenya and South Africa free, a fugitive, accused of crime as at the time of writing? Ibru, the stately wife of one of Nigeria’s foremost pioneer entrepreneurs, Michael Ibru, top member of one of Nigeria’s biggest Pentecostal churches, whose bank’s board of directors is chaired by the highly respected former capital market icon, Apostle Hayford Alile, being accused of money laundering and capital market manipulation? Curiouser and curiouser!

The EFCC also moved against the alleged major debtors of the five banks, issuing a seven-day ultimatum to persons and companies named in a list earlier published by the CBN, a list which generated lost of controversies on account of its inaccuracy and non-currency. Imagine that. CBN didn’t get its numbers right! Why the haste that led to blunders for which they had to issue explanation and apologies? Was it impossible for the fastidious Lamido Sanusi to have gotten the numbers updated, rather than publish May figures in August? And there was EFCC Chairman, Farida Waziri sounding every bit like her predecessor, the controversial Nuhu Ribadu. Where did all the niceties of due process to? Curiouser and curiouser!

Of course the originator of all of these, Lamido Sanusi wasn’t just acting, he was also speaking. He was either being quoted as saying that he would soon open the window for potential buyers of the five banks to express their interest, or that he would encourage the banks to merge with stronger ones. And he’s not kidding, is he? You put in N100 billion in a company built on the industry and sweat of individuals and groups and with assets worth twice or more that amount in Naira and promptly assume the role of lord and master? And that as if existing shareholders have all shipped out to Mars? Curiouser and curiouser!

Inevitably all these have led one to begin to wonder what all of these are about. Are we faced with an altruistic but overzealous attempt at righting wrongs in a very important sector of our national life? Or is this a mixed bag of personal vendetta, score-settling, pursuit of certain group agenda all wrapped in national service? There has been no shortage of tales in support of the latter; ranging from Soludo-era accusation of de-marketing campaign against Sanusi by one of the sacked CEOs, to alleged attempt by some of the CEOs to block Sanusi’s appointment – all unconfirmed and unproven. But into the fray comes a certain report, the front page lead story of the March 23, 2009 edition of Vanguard newspapers. Its uncanny semblance to what is currently playing out is, to say the least, interesting.

Headlined, “Group plots take over of five banks”, and signed by Omoh Gabriel and Emeka Mamah, it reads in part: “ANTI-CONSOLIDATION forces have regrouped with the hope of dismantling the structures and forcing a takeover of the top five banks in the country, Vanguard can now reveal. The grand plan by the group is to cause panic and uncertainty in the industry and make the target banks look unsafe for depositors… Vanguard investigations revealed that the aim of the anti-consolidation forces is to cause loss of public confidence in the banking industry and compel the Federal Government to move in by injecting funds. Further, they ultimately plan to instigate government to take equity holdings in the targeted banks.

“Vanguard gathered that the group at work is made up of former bank owners who lost out during the consolidation exercise, a powerful clique in the present government, and some aggrieved persons in three of the six geopolitical zones in the country who felt left out in the consolidation exercise. Presidency sources disclosed that those who felt left out in the consolidation exercise are up in arms to recoup what they felt they lost during Obasanjo years. Part of the plans hatched by the group is to ensure that the incumbent Governor of the Central Bank, Professor Chukwuma Soludo, does not get a second term. The plan is also to ensure that whatever gains consolidation recorded are discredited. This, it was learnt, was meant to force the President to act quickly in the matter of appointment of a successor to Soludo as they anticipate that the president's slow move may scuttle their dreams and cause the renewal of Soludo's re-appointment for a second term…

“A CBN official who spoke on condition of anonymity said that it is unfortunate that top five banks are the target. The banks, he said, are sound. The CBN had mistaken in the past the ongoing move as de-marketing by competitors in the banking industry, saying it is unhealthy competition. “The group is using this means to make depositors panic and undertake massive withdrawal of funds from the targeted banks in an attempt to cause liquidity problem in the bank. In that state they hope to cause a take over by the government which may buy a stake in the bank and later sell to members of the privileged group who may be appointed in the interim into the board of the banks…” Curiouser and curiouser, don’t you think? Lord, have mercy!

PIXES: CBN Governor Lamido Sanusi with EFCC chairman Farida Waziri (Mrs) exchange pleasantries at EFCC Lagos Office premises;
Chief Mrs Cecilia Ibru, Oceanic Bank's sacked CEO (centre) flanked by health personnel and lawyers arrives EFCC premises to give self up. Extreme Left is Mr Ajibola Oluyede of TRLP Law; Far left is Mr Niyi Akintola, SAN both attorneys to Mrs Ibru.