CBN imposed MDs engage in misconducts & unethical dealings

Click for Full Image Size

According to painstaking checks, controversies are still trailing the harsh decisions of the helmsman of the Nigerian apex bank, Alhaji Sanusi Lamido in August 14, and October 2, 2009 respectively, in a bid to reforming and revitalizing

the Nigerian money market, which consequently led to the sack of some bank CEOs and their senior management, some of which are still standing trials in the Courts, some answering calls in the appellate Courts, whilst a few others jumped bail and some still at large.

It is no longer news that fresh financial rot has overwhelmed Bank PHB, (one of the banks whose MD was fired in October 2009 Francis Atuche) with its new MD who often engaged in unethical practices and financial indiscretion. The new MD of the troubled bank Cyril Chuckwuma is at the receiving end. But he is not the only one at the centre of the storm. His counterparts at Oceanic bank, Intercontinental Bank and union bank are on fire.

The new BankPHB boss, according to his accusers, is enjoying a controversial $120,000 offshore vacation allowance for the financial year ending December 31, 2009. Cyril Chuckwuma is also pocketing N2 million per point, courtesy of the car monetization policy he started implementing after spending only three months in office. Now eyebrows are being raised because of the fact that the allowance is only meant for management staff that has spent a minimum of six months in the service of the bank. Chuckwuma is also swimming in another allegation of authorizing the transfer of $3.13 million cash intercepted at t he Murtala Mohammed International Airport, Ikeja, Lagos by law enforcement agents. We also learnt the embattled BankPHB boss is equally at the centre of a N60 million-insider loan deal involving a non-confirmed staff of the bank. But the management of BankPHB has denied all the allegations. Reacting to the story, the bank's Divisional Executive, Marketing and Corporate Communications head Mr. Charles Odibo, explained that the $120,000 offshore allowance was amortized over one year for the period of October 2009 to September 2010. He even praises the new MD for reviewing the allowance that was $450,000 before he was appointed to lead the bank. Odibo further clarified that the MDs official cars are monetized at N392, 688,000. Not N2milion.

On the controversial N60 million mortgages for its new staff, Odibo explained that the new management met the staff on assumption of office. He said the loan was part of the banks recruitment commitment, which is quite different from standard mortgage policy prevalent for all BankPHB staff. He was however, silent on the alleged transfer of $.13 million intercepted d by the law enforcement agents in Lagos. The cases of the of the other new bank chiefs CBN appointed months back range from loan waiver to highhandedness, hire, and fire tendencies and constant clash with shareholders and board of the banks.

At Intercontinental bank, for instance, the new MD Mr. Mahmud Lai Alabi, is battling with allegation s of massive loan waiver coloured with vested interests. According to Renaissance Professionals, a group critical of every policy of the new CBN leadership, the management is playing the tune dedicated by Sanusi Lamido's cronies. The critical group also mentioned an influential Governor who sold the CBN boss to the ailing President Umaru Yar'Adua as a beneficiary of some of the policies of the sick bank. The new management of the bank has, however, through numerous publications, denied any wrongdoing. The recent sack of over 3,000 staff of the bank has also rubbed of on the image of the respected banker who is now seen as insensitive. Alabi is also alleged to be fronting for foreign and Nigerian investors, who want to take over the bank.

Oceanic Bank John Oboh is also on fire. Other than firing more than 1,500 staff he met on assumption of office his plan to indirectly invest in the bank has pitched him against the original shareholders of the bank a step which many shareholders and investors have frowned at.

Mrs Funke Oshibodu of Union Bank of Union Bank is deeply enmeshed in boardroom politics. gathered that her critics accused her of secret cleansing of the system in favour of her people. This MD and Vice Chairman of Nigeria Economic Summit Group is on fire for sacking junior staff and employing managers who know next to nothing in the scheme of things and particularly about their new brief. As such, Oshibodu, scooped, is not in the good books of majority of union Bank employees. Some sources confirmed that she is very smart and that she can come to any branch and disguised as a customer, and if any staff was caught ''misbehaving'' that could possibly be the end of such unsuspecting staff. Also for unconfirmed staff, who have been working with the bank Oshibodu now wants them to write another test. ''The woman is tough oo. She doesn't like people to resign. She can fire anyone at anytime irrespective of the number of years spent by such affected person, it could be 20 or 25 years, who cares. An aggrieved staff informed

However, further checks made by revealed that Union bank spokesperson Mr. Francis Barde, admitted that there are bound to be issues between employers and employees. He said the issues raised are being addressed by the management, though it had not gotten to the stage of staff embarking or planning any strike.

In all abundant evidence have it that new bank chiefs appointed after the sack of their predecessors have had problems working with some management staff loyal to their disgraced masters. Some have also been flushed out by the new management. The new CBN Governor, Sanusi Lamido Sanusi, had fired five bank MDs on August 14, 2009. Oceanic bank, Union bank, Intercontinental bank, Afribank and Finbank were affected in the first phase of the money market revolution in Nigeria. Sanusi struck again like a volcanic on October 2, 2009, removing bank MDs (Bank PHB's Francis Atuche and his Spring Bank counterpart, Steve Ojo). Last month Sanusi struck again with a ten years tenure for Bank CEO`s, thus abruptly ending the careers of Tony Elumelu and Jim Ovia. However, Sanusi Lamido Sanusi is not done yet and the question now is who is next?

| Article source