by Stanley Azuakola
These are uneasy times for the Chairman of Coscharis Motors and Sure Comfort Limited, Dr. Cosmas Maduka. The Central Bank of Nigeria (CBN) has removed him from the board of Access Bank with immediate effect.

The CBN took the decision following a petition by two minor shareholders of the bank, Messrs Godfrey Onyeka and Godfrey Obiamalu.

The duo alleged, in their petition to the CBN governor dated January 21, 2013, that Access Bank had granted loans to Maduka, and two other directors of the bank, in a manner that did not follow due process. The two other directors are Gbenga Oyebode and Tunde Folawiyo.

The petition, written by the counsel to Onyeka and Obiamalu, Ime Asanga and Co, reads that: “Our clients have become aware of a fraudulent credit facilities made by the bank to three of its directors-Dr. Cosmas Maduka through two of his companies namely: Coscharis Motors Ltd and Sure Comfort Limited here in Nigeria, to Mr. Gbenga Oyebode and Tunde Folawiyo. Our clients are desirous of protecting their investments in Access Bank and ensuring that returns on those investments are not unnecessarily depleted, especially when easier, cheaper and more readily available local remedies are provided for under BOFIA. Accordingly, we have our clients’ instructions to make this complaint to you with a prayer that you invoke the clear provisions of Section 20(6) of BOFIA to recover from the directors of the bank the full amount involved in the obnoxious credit facilities as well as cleanse its Board and Management by removing all the Directors.”

Meanwhile Access Bank itself, was fined the sum of N3million by the CBN for violating its rules and regulations on granting of loans. The CBN, through its Banking Supervision Department told Access Bank that the sanction became necessary following a risk based examination carried out on the bank on September 30, 2011.

“The bank contravened Section 20(1) of BOFIA, 1991, as amended by granting credit facilities to Westcom Group to the tune of N38.4 billion which was above its single obligor’s limit of N36.4 billion.

“Contrary to the CBN circular No BSD/9/2004 of 16th July, 2004 which stipulates that credits to directors and their related companies shall not exceed 10% of the paid-up capital without the CBN approval, the bank granted to its following directors; Mr. Gbenga Oyebode, Dr. Cosmos Maduka and Mr.Tunde Folawiyo, facilities in excess of ten percent of its paid-up capital without the necessary regulatory approval. Consequently, penalties totalling N3, 000, 000.00 is imposed on your bank for the above infractions,” the CBN letter read

i think cosmas maduka is actually lucky that he is not being taken to court.what he did is almost similar to what the likes of okey nwosu,ibru,akingbola and the likes did.

I hope this is the first step In prosecuting this criminal who wanted to steal a hard working man's business. They in the banking sector all do these things. CBN should look beyond access bank. I hope Aig follows too. Arrogant bastards.

akpomeme: I hope this is the first step In prosecuting this criminal who wanted to steal a hard working man's business. They in the banking sector all do these things. CBN should look beyond access bank. I hope Aig follows too. Arrogant bastards.

you mean imkhoukode?yea i agree too he needs to face his own music but don't you think ubah also has some issues that needs answers?

asha 80: you mean imkhoukode?yea i agree too he needs to face his own music but don't you think ubah also has some issues that needs answers?

Nothing has bee proven against Ifeanyi Ubah so far. He was entirely cleared by all the committees aside the one led by Aig whose core motive was to indict Ifeanyi in order to take over his business. I pity people who do business with access bank because the bank under the leadership of Herbert and Aig will always work towards frustrating their customers' businesses in order to pave way for a forceful take over. It is pathetic really.

I don't know if it is a case of fraud as fraud is a legal issue. However, I find it most irresponsible that a Director of a bank makes a silly excuse of "sentiments" in making his decision.

As a Director at the strategic level in a financial institution, risk should be a language, it should be embedded, there should be a 'taken-for-grantedness' of risk as only then can you effectively cascade and embed a risk culture at lower levels of the organisation.

Maduka and Access Bank engaged in a very risky transaction using creditors funds. This is one of the reasons why in some jurisdictions loans to Directors are absolutely forbidden. Forbidden such loans gives a level of control as Directors cannot be trusted not to misuse creditors funds.

I urge the CBN to come harder on the issue of loans to Directors and disclosure of such loans in the books.

ballabriggs: I don't know if it is a case of fraud as fraud is a legal issue. However, I find it most irresponsible that a Director of a bank makes a silly excuse of "sentiments" in making his decision.

As a Director at the strategic level in a financial institution, risk should be a language, it should be embedded, there should be a 'taken-for-grantedness' of risk as only then can you effectively cascade and embed a risk culture at lower levels of the organisation.

Maduka engaged in a very risky transaction using creditors funds and this is one of the reason why in some jurisdictions loans to Directors are absolutely forbidden. It gives a level of control as Directors cannot be trusted not to misuse these funds.

I urge the CBN to come harder on the issue of loans to Directors and disclosure of such loans in the books.

I agree entirely. Aig should be investigated...another dodgy associate of Gej. Don't understand Jonah at all. I hear they want to reward aig with cbn governor position for doing jonah's bidding. Na wah.

by the has capital oil started operations?i do not think i have seen their trucks lately.

asha 80: by the has capital oil started operations?i do not think i have seen their trucks lately.

All Nnpc trucks are from capital oil. Go and research it. You don't have to see capital brand unless it is under the kero direct scheme. They are in business.

same same people

Smh*

akpomeme: Smh*

hehe abeg no mind that person.na typical naija response.however do you have any idea of how capital oil is going to offset the 42b naira debt?any time line?

asha 80: hehe abeg no mind that person.na typical naija response.however do you have any idea of how capital oil is going to offset the 42b naira debt?any time line?

Probably a 20 years repayment plan...lol

5columnist:

Probably a 20 years repayment plan...lol

haha na wao but seriously that debt is quite high.

akpomeme: I hope this is the first step In prosecuting this criminal who wanted to steal a hard working man's business. They in the banking sector all do these things. CBN should look beyond access bank. I hope Aig follows too. Arrogant bastards.

Calling Aig arrogant is unfair. However, removing Maduka from the board and not the entire board is partial because the board credit committee signed the loan. However, the padi padi Aig shared with Sanusi is beyond BOFIA Acts