In furtherance of its corporate governance compliance role, the Central Bank of Nigeria (CBN) has taken action to address violations of its rule as it affects members of the board of the quoted financial institution.



Actions taken by the CBN includes the formal removal of Mr. Cosmas Maduka, Chairman of its board credit committee (whom had previously stepped aside as director of the bank following the controversy that surrounded a N34.4 billion loan he obtained from the bank to finance the importation of petrol in partnership with Mr. Ifeanyi Ubah, the CEO of Capital Oil); and a three million naira (N3m) fine for serially violating lending rules which put the bank and its shareholders at risk.



The CBN said Access Bank Plc contravened its rule which barred banks from lending not more than 10% of its paid up capital to directors or their institution and affiliated companies – and goes to name two other directors of the bank who were granted such loans as Mr. Gbenga Oyebode and Mr. Tunde Folawiyo.



Specifically, the CBN said that “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 totaling N3, 000, 000.00 is imposed on your bank for the above infractions,” the CBN said in a letter to the bank.



Recall that Access Bank Plc had earlier in the week represented to the Nigerian Stock Exchange (NSE) that Mr. Cosmas Maduka has ‘retired’ from the board of the bank in compliance with the CBN Code of Corporate Governance for banks that stipulated a maximum 12 year term; without variation.


http://www.proshareng.com/news/19160/CBN-sacks-Cosmas-Maduka-from-Access-Bank-Board-Fines-Bank-for-Violating-Lending-Rules

omo_to_dun: First to comment.


Ogo ogo o, eyin baba. (2x)
Emi adupe, ma fori bale, ma yin Baba.

Meaning?

Why is Aig Imokhuede not mentioned here? Double standard