There seems to be some corruption in one of the CBN's 'consolidated' banks - Afribank.

A major crisis reminiscent of the Enron saga is rocking Afribank Nigeria Plc as its immediate past Group Managing Director, Mr. Patrick Olayele Akinkuotu, alleges that the latest financial report of the bank for the year ended March 31st, 2006 is cooked.

Akinkuotu in a petition to the regulators and the National Assembly titled: “Report of Conspiracy by the Board of Directors and the External Auditors against the Group Managing Director of Afribank – Urgent Need for Your Intervention to Prevent the Bank’s Failure,”’ a copy which was obtained by THISDAY, alleged that the results were manipulated by Afribank’s board and its external auditors –Akintola Williams Deloitte.

The people involved are desperately trying to cover up the problem, using the CBN as an excuse.

But the bank’s external auditors –Akintola Williams Deloitte, insist that their audit report on the bank’s accounts are a true, fair and accurate representation of its financial health for the year under review, stressing that the Central Bank of Nigeria (CBN) has given their job a clean bill of health.

Also refuting Akinkuotu’s claim, Afribank’s spokeman, Mr. Lanre Alabi, said the bank’s accounts were in order, contending that if it were not so, they “would not have been approved by the Central Bank of Nigeria (CBN).”
Afribank had few weeks ago, reported gross earnings of N14.65 billion; pre-tax profit of N3.69 billion; post-tax profit of N2.4 billion; total assets of N131.27 billion and shareholders’ fund of N27.06 billion.

Source: http://www.thisdayonline.com/nview.php?id=60782

Clearly consolidation and corruption are mutually exclusive. I hate to say I told you so.

You can't eliminate corrupt practices in a dynamic society. That's why enforcement mechanisms are put in place eg. EFCC. Unfortunately, they're busy running around as Obasanjo's political thugs. Until majority of Nigerians become sensitized to demand the rule of law, we shall continue to grope in the dark.

You can't eliminate corrupt practices in a dynamic society.

My contention is that the CBN didn't really intend to eliminate corruption by consolidating the banks, but to consolidate our economic power into the hands of a few individuals, deliberately or not.

This 'consolidated bank' scandal supports my theory. The corruption they "weeded out" is still there!