Agenda: Sanusi plans to sell Oceanic Bank to friends, Ibru tells court

Agenda: Sanusi plans to sell Oceanic Bank to friends, Ibru tells court

• Critics query inclusion of Akintola Williams, KPMG as bank advisers


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Cecilia Ibru has alleged at the Federal High Court in Lagos that her sack as Oceanic Bank Managing Director (MD) on August 14 is part of an elaborate design by Central Bank of Nigeria (CBN) Governor, Lamido Sanusi, to sell the bank to his friends under the guise of “core investors.”

She stressed in an affidavit in support of the suit challenging her removal that the appointment of John Aboh to replace her was part of Sanusi’s design to sell the bank to his nominees.

Ibru, who was fired along with four other bank MDs over alleged financial impropriety, noted that Aboh was instrumental to the transfer of the ownership of Wema Bank to a new group of core investors when he acted as Wema Bank MD.

She argued that Sanusi acted hastily and in bad faith in getting rid of her.

“Neither Sanusi nor officials of the CBN gave any report of special examination to me in my capacity as the CEO (Chief Executive Officer) of the bank or in my private capacity for the purpose of enabling me defend myself and the bank prior to my removal from office,” she narrated.

Ibru wants the court to determine, among others – in the light of Section 36(1) of the Constitution and Section 35(d) of the Banks and other Financial Institutions Act (BOFIA) – whether Sanusi and the CBN were bound or not bound to observe the rules of natural justice and fair hearing by hearing her side of the story before sacking her.

But the CBN has countered that Ibru lacks the locus standi to institute the suit, and the court also lacks jurisdiction to entertain it.

No date has been fixed for hearing of the suit.

Meanwhile, controversy continues to trail last weekend’s appointment of seven advisers by the CBN for 10 troubled banks.

A statement issued last Friday by CBN Spokesman, Mohammed Abdullahi, listed the advisers as Deutsche Bank, Chapel Hill Denham (managed by Bolaji Balogun, son of Subomi Balogun, First City Group Chairman), Stanbic IBTC Bank, law firms Olaniwun Ajayi and Kola Awodein & Co, KPMG Professional Services, and Akintola Williams Deloitte.

They are expected to “explore all possibilities for institutionalising best practice and good corporate governance at each of the banks, in furtherance of the CBN’s desire that the interests of all stakeholders are respected,” said Abdullahi.

But critics riposted that KPMG and Akintola Williams Deloite “were the same auditors who saw nothing wrong in the books of the same banks they are now asked to advise and help out of the mire.”

The advisers are to work with Afribank, Bank PHB, Equitorial Trust, Intercontinental, FinBank, Oceanic, Spring, Union, Unity, and Wema Bank.

Akintola Williams Deloitte audits the books of Afribank, Equitorial Trust, FinBank, Spring, Unity (jointly with Pernell Kerr Forster), and Union.

KPMG audits Wema Bank, while PriceWaterHouse is external auditor for Bank PHB, Intercontinental, and Oceanic.

Chris Enyinnanya, a professional bank and public affairs analyst, reiterated that, “The major problem with the banks is the breach of corporate governance by their Directors and management. It is not the function of the consultants to enforce it. The CBN has rightly removed the corrupt Directors.

“Let the new Directors tackle liquidity and capital adequacy problems not those same auditors that couldn’t identify the problems in the course of their audit.”

Gbadebo Olatokunbo, a shareholder rights activist, said the job requires people who are familiar with the problems, to make the task of solving them easier. He said these same auditors know where the problems lie.

However, Samuel Nzekwe, former President of the Association of National Accountants of Nigeria (ANAN), insisted that the audit firms cannot absolve themselves of the mess.