Anyone followed the failed banks proceedings of the mid-90s?
Anyone knew Commerce bank?
Anyone knew Drs Femi Adekanye and Ralph Osayameh?

Well, the failed banks saga of the 1990s erupted from the enforcement of the failed bank decree of 1991 that swept away top bank chiefs of that period, just as Sanusi's invocation of BOFIA is sweeping off some reckless bank chiefs of today.
Commerce Bank Ltd was one of the banks licensed in 1989, alongside Intercontinental, Zenith,IBTC and a host of others, and the bank was owned by Chief Femi Adekanye and Dr Ralph Osayameh. These banks, later dubbed second generation banks, began what is now known as glamorous banking. They revolutionized banking with perks and flamboyant living by bank executives and all the First and Union banks of this world suddenly became old school, the ugly bride.

For reasons, which a decade later some people still believe was political, the military government's axe dangled on some of these bank chiefs, most prominently Dr. Femi Adekanye and Ralph Osayameh, CEO and Vice Chairman respectively of the then Commerce bank(Gamaliel Onosode was the Chairman and he was later accused of betrayal). The then John Ebodaghe-led NDIC accused them of breaching  lending principles in giving loans to Ile Oluji company(a company that later went under) and they were imprisoned in additon to their banks being liquidated.

Dr. Femi Adekanye FCIB was a seasoned banker and author of books on Finance. He was the President of the Chartered Institute of Bankers of Nigeria(CIBN) 1991-93 and President of the West African Bankers Association.The guy he co-founded Commerce Bank with, Dr. Ralph Osayameh, was also a past president of CIBN. In fact the fall of their bank is still being used in Finance lessons as reference point in how professional banking certificates/qualifications do not translate to proper management of bank. Imagine a bank run by two former CIBN presidents failing!

While Adekanye and Osayameh were among the superbankers of that era(like the Jim Ovia and Tony Elumelu of today), Akingbola was in a lower class then. He was the youngest bank CEO when those banks were licensed in 1989. By 1994-96 when Adekanye and co were on trial, Akingbola, though still lower than these more renowned bank chiefs, was already a member of CIBN board. Recall Adekanye and Osayameh were past presidents. The two folk, seeing that their free fall was on the way, contacted Akingbola to save their bank from imminent collapse by accepting their merger proposal. Akingbola refused and watched his senior colleagues and their banks crumble. That was the end of their banking career that had spanned four decades. From men that people looked at in awe in Nigeria's financial and social circles, the two men found themselves in Ikoyi prison, in white prison uniform. You know the military. They spent four years in prison. The men soon paled into insignificance in the list of Who's who in Nigeria. one of them is now a lecturer in South Africa.

Fourteen years later, the then young Akingbola now came of age. He rose to positions these men were in 1991-94. He became CIBN president like them. He became NSE Vice-President. He was made Pro-Chancellor of a university. The ovation was loudest. Every young banker was looking forward to become Erastus Akingbola, just as the young bankers of the 90s looked forward to become Femi Adekanye or Ralph Osayameh. That was the peak of his career.

And suddenly, the bubble burst. Akingbola was sent the way of Adekanye and Osayameh, but thank God this is not a military era, he was sent home while the Adekanyes were sent to Ikoyi prison. . . . someone is saying this is retribution for Akingbola's refusal to accept Commerce bank's merger proposal to save his two falling senior colleagues!!!! I do not totally agree.

Like Fola Adeola, I believe Akingbola should have left the scene long ago. My 5 cent.

NB: This is just for the records. I'm not celebrating the fall of anybody. Even if the fall is due to their recklessness and greed, I don't think it's moral to celebrate the fall of another man.

Jarus:

Anyone followed the failed banks proceedings of the mid-90s?
Anyone knew Commerce bank?
Anyone knew Drs Femi Adekanye and Ralph Osayameh?

Well, the failed banks saga of the 1990s erupted from the enforcement of the failed bank decree of 1991 that swept away top bank chiefs of that period, just as Sanusi's invocation of BOFIA is sweeping off some reckless bank chiefs of today.
Commerce Bank Ltd was one of the banks licensed in 1989, alongside Intercontinental, Zenith,IBTC and a host of others, and the bank was owned by Chief Femi Adekanye and Dr Ralph Osayameh. These banks, later dubbed second generation banks, began what is now known as glamorous banking. They revolutionized banking with perks and flamboyant living by bank executives and all the First and Union banks of this world suddenly became old school, the ugly bride.

For reasons, which a decade later some people still believe was political, the military government's axe dangled on some of these bank chiefs, most prominently Dr. Femi Adekanye and Ralph Osayameh, Vice Chairman/CEO and Chairman respectively of the then Commerce bank. The then John Ebodaghe-led NDIC accused them of breaching lending principles in giving loans to Ile Oluji company(a company that later went under) and they were imprisoned in additon to their banks being liquidated.

Dr. Femi Adekanye FCIB was a seasoned banker and author of books on Finance. He was the President of the Chartered Institute of Bankers of Nigeria(CIBN) 1991-93 and President of the West African Bankers Association.The guy he co-founded Commerce Bank with, Dr. Ralph Osayameh, was also a past president of CIBN. In fact the fall of their bank is still being used in Finance lessons as reference point in how professional banking certificates/qualifications do not translate to proper management of bank. Imagine a bank run by two former CIBN presidents failing!

While Adekanye and Osayameh were among the superbankers of that era(like the Jim Ovia and Tony Elumelu of today), Akingbola was in a lower class then. He was the youngest bank CEO when those banks were licensed in 1989. By 1994-96 when Adekanye and co were on trial, Akingbola, though still lower than these more renowned bank chiefs, was already a member of CIBN board. Recall Adekanye and Osayameh were past presidents. The two folk, seeing that their free fall was on the way, contacted Akingbola to save their bank from imminent collapse by accepting their merger proposal. Akingbola refused and watched his senior colleagues and their banks crumble. That was the end of their banking career that had spanned four decades. From men that people looked at in awe in Nigeria's financial and social circles, the two men found themselves in Ikoyi prison, in white prison uniform. You know the military. They spent four years in prison. The men soon paled into insignificance in the list of Who's who in Nigeria. one of them is now a lecturer in South Africa.

Fourteen years later, the then young Akingbola now came of age. He rose to positions these men were in 1991-94. He became CIBN president like them. He became NSE Vice-President. He was made Pro-Chancellor of a university. The ovation was loudest. Every young banker was looking forward to become Erastus Akingbola, just as the young bankers of the 90s looked forward to become Femi Adekanye or Ralph Osayameh. That was the peak of his career.

And suddenly, the bubble burst. Akingbola was sent the way of Adekanye and Osayameh, but thank God this is not a military era, he was sent home while the Adekanyes were sent to Ikoyi prison. . . . someone is saying this is retribution for Akingbola's refusal to accept Commerce bank's merger proposal to save his two falling senior colleagues!!!! I do not totally agree.

Like Fola Adeola, I believe Akingbola should have left the scene long ago. My 5 cent.

NB: This is just for the records. I'm not celebrating the fall of anybody. Even if the fall is due to their recklessness and greed, I don't think it's moral to celebrate the fall of another man.

i dont know the other 2 but i know ralph osayameh personally. he is one fine morally upright man that got caught up in nigeria's business politics. unfortunately he is not a politician. i have not heard of him recently cos i dont reside in nigeria. ask anyne who know the man personally they will tell you who he is a fine gengtleman.

he didnt know there was more to banking than knowing figures and being inteligent. everything is politics. tribalism in nigeria

GEW:

i dont know the other 2 but i know ralph osayameh personally. he is one fine morally upright man that got caught up in nigeria's business politics. unfortunately he is not a politician. i have not heard of him recently cos i dont reside in nigeria. ask anyne who know the man personally they will tell you who he is a fine gengtleman.

he didnt know there was more to banking than knowing figures and being inteligent. everything is politics. tribalism in nigeria

I followed the two men(Femi Adekanye and Ralph Osayameh) in the 1990s. Femi Adekanye was my role model then when my sole ambition, as a young Junior secondary student was to grow up and become a banker like Adekanye and I actually knew him personally. I have spoken with him a couple of times after his release from prison. I have read the two books he wrote while in prison, DARK NIGHT OF THE SOUL and PRESUMED GUILTY.

He was a philantropist to the core. In his account of his ordeals, as I read in his 'PRESUMED GUILTY', he claimed IBB and Abacha witchhunted him for associating with MKO. Another account had it that it was because he refused to sell his bank, Commerce bank, to IBB.

But sentiments apart, I struggle to accept his ordeal was political. Even if it was political, I think they were the ones that took a petrol bath, making it easy for their enemies to roast them. I read his book but struggled to get convinced that the Ile-Oluji loan deal was not recklessness on Adekanye's and Osayameh's side.

On the part in bold, are you sure being gentle and morally upright make one immune from recklessness? Remember they did not steal, they only mismanaged.

Jarus:


On the part in bold, are you sure being gentle and morally upright make one immune from recklessness? Remember they did not steal, they only mismanaged.

Its called proffesional incompetency and its a crime. Hope you got your self a better role model after wards. Abi you later choose Erastus?

kokoA:

Its called proffesional incompetency and its a crime. Hope you got your self a better role model after wards. Abi you later choose Erastus?

FOLA ADEOLA now.

Jarus:

FOLA ADEOLA now.

Good for you, at least for now until his own skeleton is dug out.

kokoA:

Good for you, at least for now until his own skeleton is dug out.

Sincerely, it's now very hard to trust any CEO in naija again.

Jarus:

Sincerely, it's now very hard to trust any CEO in naija again.

True word! Not even Sanusi himself.

Jarus:

I followed the two men(Femi Adekanye and Ralph Osayameh) in the 1990s. Femi Adekanye was my role model then when my sole ambition, as a young Junior secondary student was to grow up and become a banker like Adekanye and I actually knew him personally. I have spoken with him a couple of times after his release from prison. I have read the two books he wrote while in prison, DARK NIGHT OF THE SOUL and PRESUMED GUILTY.

He was a philantropist to the core. In his account of his ordeals, as I read in his 'PRESUMED GUILTY', he claimed IBB and Abacha witchhunted him for associating with MKO. Another account had it that it was because he refused to sell his bank, Commerce bank, to Abiola.

But sentiments apart, I struggle to accept his ordeal was political. Even if it was political, I think they were the ones that took a petrol bath, making it easy for their enemies to roast them. I read his book but struggled to get convinced that the Ile-Oluji loan deal was not recklessness on Adekanye's and Osayameh's side.

On the part in bold, are you sure being gentle and morally upright make one immune from recklessness? Remember they did not steal, they only mismanaged.

thanks.  you missed

caught up in nigeria's business politics

part.   i didnt read the books but i know ile-oluji was originally a UBA loan facility so that was technically osayamehs baby because he knew the facility having been area manager for UBA benin/ ondo earlier .  dont forget he is an ondo man too. he is from a  little village called ijagba off benin/ ifon road.

there were people like UBA's alhaji mutallab, mallam tukur and baffa were always ready to make an example of him for bailing out of UBA.

yes he took one already bad and doubtfull debt does that make him evil or wicked?  he made an error of judgement how many other nigerian goest to jail for making error of judgement?.  mr osayameh was one thorough human being but you need to know the political and tribal pressures that comes with every project of the types you are mentioning here.  are we not talking about nigeria here?.  i worked in commercial dept. as loans and credits was called in those days.  i know the voice of some obas and powerful sons/ daughters of the soils pursuing approval of loans/ facilities for questionable projects for thier places. some of these facilities were signed at head office levels before regional offices knew about them.  

most nigeria's business succeed or fail on political or tribal patronage and nothing more.  you need to navigate many land mines when doing business in naija than most people care to know.

having said that i still choose to believe he is a very nice man.  he is not one of those greedy arrogant nigerians.  he is a man of great humility and respect for everyone he came accross it doesnt matter who you are he respected you. that was the RKO i knew and choose to remember. a fine decent man

GEW:

having said that i still choose to believe he is a very nice man. he is not one of those greedy arrogant nigerians. he is a man of great humility and respect for everyone he came accross it doesnt matter who you are he respected you. that was the RKO i knew and choose to remember. a fine decent man

The same goes for his friend, Femi Adekanye, who I also know closely.

Jarus:

The same goes for his friend, Femi Adekanye, who I also know closely.

tks. maybe that is why they got along then apart from their love for banking.
where are they now? what do they do now?

d failed bank actually stained them. Imagine ex-convict tag. Adekanye is now in SA as a lecturer. Don't know wia Osayameh is.

Let us also remember, my friends, that whatever venture anyone engages in [within the boundaries of our country, Nigeria] is bound to be tainted in one way or the other. If the government as an institution is not involved in that venture, people will be involved. Whichever way you look at it, someone is always trying to cheat, outsmart or use you. In trying to guard against being used by the government, other institutions or the people, you may end up breaking one or two rules and regulations, which will one day speak out against you. Yes, this happens in other countries, where you have to be smart when running a business. However, the problem in Nigeria is that because most big businesses want to survive successive government rules and regulations, they always, ALWAYS end up doing business with the government and/or promoting one regime or the other. This becomes a problem because since there is no continuity in our governments, every successive government finds fault with what happened in the previous dispensations.

This is where wahala starts!

Epiphany:

Let us also remember, my friends, that whatever venture anyone engages in [within the boundaries of our country, Nigeria] is bound to be tainted in one way or the other. If the government as an institution is not involved in that venture, people will be involved. Whichever way you look at it, someone is always trying to cheat, outsmart or use you. In trying to guard against being used by the government, other institutions or the people, you may end up breaking one or two rules and regulations, which will one day speak out against you. Yes, this happens in other countries, where you have to be smart when running a business. However, the problem in Nigeria is that because most big businesses want to survive successive government rules and regulations, they always, ALWAYS end up doing business with the government and/or promoting one regime or the other. This becomes a problem because since there is no continuity in our governments, every successive government finds fault with what happened in the previous dispensations.

This is where wahala starts!

you are so right.  that was why i mentioned being " caught up in nigeria's business politics ".  nigeria is one corrupt place to do anything in.  these guys got caught up in political and ethnic power fights.  the RKO i know will never do anything wrong but i know too the presure to sign away 9 figure loans like pure water in nigeria just to keep your job let alone keep your bank. go see the amount of rural branches that are created in th emost unprofitable locations only becos some big man or woman came from there and you begin to see what i mean.

nigeria is one big corrupt failed state

Daughters and sons of the poor Go and get killed or injured in battle for Nigeria few hear from them but just touch the Elite. It is either they are muslims Yoruba or Igbo or Hausa.

Ribadu was Chased out of Nigeria for what.

When the bullets hit our Soldiers they never say the bullet is hitting because I am a Hausa Igbo or Yoruba. The Elite and the games they play on the masses.

Good men also bad days too.

people like Ribadu Osayameh and Sanusi should never give up poliil or tribal perceived witch hunt. we are more than the language we speak.

Jarus

As ever u have displayed a great deal of knowledge and wisdom. But to accuse Akingbola and Cecilia of Greed and Reckelessness is a grave sin. Please do ask for forgiveness.

It is easy to read stuff from the dailies and run one's mouth.

"What is after the number 6 is much higher than seven"

RibaduFan:

Jarus

As ever u have displayed a great deal of knowledge and wisdom. But to accuse Akingbola and Cecilia of Greed and Reckelessness is a grave sin. Please do ask for forgiveness.

Why? Is there a better word to use for them? Tell us.

RibaduFan:

Jarus

As ever u have displayed a great deal of knowledge and wisdom. But to accuse Akingbola and Cecilia of Greed and Reckelessness is a grave sin. Please do ask for forgiveness.
It is easy to read stuff from the dailies and run one's mouth.

"What is after the number 6 is much higher than seven"

Okay, I retract the 'greed' description, but can you convince me they were not reckless?

2 years down the line u guys would look back and understand

It is easy to sit back and accuse others.

You are the ones making the unfounded allgeations so the burden of proof lies with you. Kindly proof to us that they are greed and reckless.

Have heard of wicked politics in Nigeria. Now I see it being played live.

Am sure you guys also crucified Jim Nwobode a few years back, now no one is saying jack.

RibaduFan:

It is easy to sit back and accuse others.

You are the ones making the unfounded allgeations so the burden of proof lies with you. Kindly proof to us that they are greed and reckless.

Have heard of wicked politics in Nigeria. Now I see it being played live.

Am sure you guys also crucified Jim Nwobode a few years back, now no one is saying jack.

No body is accusing anybody here. The facts are on ground: There was an audit and these ones failed. Can you please tell me what is political about this? What will sanusi acheive from draging the name of his former collegues in mud. I bet you are not a depositor in one of these banks thats why you are making this statement.

Who said savanah bank wasn't bad? Wining a case in court doesn't mean Nwobodo is innocent. Tha is where you can say politics came in. He is a PDP cheiftain.

We will look back in two years time with praises for Sanusi. Watch and see.

@Jarus


Did Fola Adeola recently comment on Erastus Akingbola? Was it a public comment or a private one? Would love to know.

RibaduFan:

2 years down the line u guys would look back and understand

Ok, let's wait and see.

RibaduFan:

It is easy to sit back and accuse others.

You are the ones making the unfounded allgeations so the burden of proof lies with you. Kindly proof to us that they are greed and reckless.

Have heard of wicked politics in Nigeria. Now I see it being played live.

Am sure you guys also crucified Jim Nwobode a few years back, now no one is saying jack.

I understand the burden of managing human and material resources in a very complex and competitive environment. I understand the intrigues and intricacies. I understand it could be rough at times, and save some patchings, results could be embarrassing and suicidal seeing what you've built over years subtly crumbling without trying to save it even if you have to jump the rules. In fact, with recent experience, I doubt if any CEO in Naija will survive if subject to thorough ethical check. I pity those CEOs. I wonder how they even sleep.
But sentiments apart, yemmyse, Akingbola's was of monumental proportion.

Can he deny that:
- he did not give out N250 billion to his associate companies which was used to buy shares in bank
- 78 percent of Intercontinental Bank’s shareholders’ funds were not eroded
-  he did not have bad books in oil and gas as well as real estate(one of such real estates is just behind my house in VI annexe here,behind city of David church, sprawling a whole street, built with billions of Naira)

I'm not in anyway rubbishing Akingbola, but I think we need to look at issues dispassionately.

qblaze:

@Jarus


Did Fola Adeola recently comment on Erastus Akingbola? Was it a public comment or a private one? Would love to know.

No, I have not heard Fola Adeola comment on this Sanusi shocker.

Osayameh and Adekanye's ordeal was way more than misappopriation.

Yes, they mismanaged and they were incomepetent to an extent but there was a tinge of politics in it.

With the way Abacha used the failed bank tribunal to hunt this guy's, you would think Abacha was concieved of the Virgin Mary!

Not only was Osayameh and Adekanye hunted, the entire board of Commerce Bank were hunted.

I happen to share blood and a last name with one of the men on the board of Directors at commerce bank.

HE lost everything, soldiers, godo-godo and MOPOL destroyed, vandalised and confiscated everything that had his name on it.

His house which had the imprint of obscene wealth(where did he get all that money from sef!) was mowed down by bulldozers with cars and properties still in it!. Dude couldn't pick a pin from the house before he bailed out and went on some exile as the military junta were all over everywhere looking for this guy. Personally, i was directly hit by this. How many times did MOPOL and Aboki soldiers ravage my house looking for this guy? Tons of times!

Banking in Nigeria needs a lotta sanitation and am glad Sanusi is cleansing the augean stables even though he also definitely has some skeletals in his cupboard. But if it entails the "animals" wiping out themselves (as Sanusi is doing) would make Nigeria better. Thats fine! Am all for that!

Jarus, thank you for this thread.
I personally find your posts refreshing and insightful.
i remember the two men very well and remember Commerce bank too well.
they were the super bank and super bankers of those days.
i remember that Gamaliel Onosode was the bank chairman at a time and left shortly before the collapse.
foe that he earned my respect (considering that i am very cynical about the Nigerian elite).
i also remember that Wakilin Adamawa was a major shareholder of that bank.

the problem i have is why present day super bankers refused to learn anything from the debacle of the likes of Crystal bank and Commerce bank of the past?
their is an inherent greed in capitalism that cuases innovation and progress to thrive but their must be a fine line where the majority must refuse to cross.today banks have blurred the line and infact made it non existent.everything seems to go.
regulation is the moral compass of capitalism.in this regard, the CBN has failed the country.

there might have been a case of tribalism and victimisation but the truth of the matter was that recklessness was the bedrock of the failure of commerce bank.
they must have only armed their enemies to harm them.

i do not trust anyone in the limelight in the Nigerian space (because in the past they have repeatedly disappointed and proven themselves to be hypocrites) but the only Nigerian bank i respected and still do respect is Mr. Atedo Peterside.
A man that was constrained by his vision, strategy and a willingness to b different.
I will like to hear his constructive criticism of the present debacle.

Jarus:

Ok, let's wait and see.
I understand the burden of managing human and material resources in a very complex and competitive environment. I understand the intrigues and intricacies. I understand it could be rough at times, and save some patchings, results could be embarrassing and suicidal seeing what you've built over years subtly crumbling without trying to save it even if you have to jump the rules. In fact, with recent experience, I doubt if any CEO in Naija will survive if subject to thorough ethical check. I pity those CEOs. I wonder how they even sleep.
But sentiments apart, yemmyse, Akingbola's was of monumental proportion.

Can he deny that:
- he did not give out N250 billion to his associate companies which was used to buy shares in bank
- 78 percent of Intercontinental Bank’s shareholders’ funds were not eroded
- he did not have bad books in oil and gas as well as real estate(one of such real estates is just behind my house in VI annexe here,behind city of David church, sprawling a whole street, built with billions of Naira)

I'm not in anyway rubbishing Akingbola, but I think we need to look at issues dispassionately.

I Totally agree with you. The responsibility of managing a large company in Nigeria is difficult and tricky. I am of the school of thought that to stay in business in this country, you have to either cheat, turn a blind eye to some unethical practices your company engages in or be cheated. Further to this, i want to say that it is not only the banks that should be audited. Maybe other companies: Insurance, Telecoms, Manufacturing, ministries (Government), Parastatals, the Presidency, and maybe even Churches. It may just be seen that other CEO's have been dipping their fingers into the honey pot. The rot is everywhere.

In this case though, tribal or not, i see a case of victimization - for one reason or the other. Why? Because i see this as a case of sacking 5 robbers out of a known, lets say 100. Why is Elumelu still a CEO? Ovia, Atuche, Imokhuede and the others? Why is Egwu still a Minister? And Lukman, and others? Why is David Mark still the Senate President? Why is Yar'Adua still the president? Have all these people not made mistakes while in office? Are they performing any better than these CEO's performed?

Mark these words, regardless of what Sanusi does, there is no way the sector can be completely rid of the rot. When new CEO's are appointed and Sanusi leaves office in the future, the next CBN Governor will still find some fault with the new CEO's and MD's. The banking, or any other institution cannot be changed UNTIL THE SITUATION IN THE COUNTRY CHANGES. The banks and their CEO's are a product of the SOCIETY AND THAT CANNOT BE CHANGED BY SACKING 5 OR ALL OF THEM.

mbulela:

there might have been a case of tribalism and victimisation but the truth of the matter was that recklessness was the bedrock of the failure of commerce bank.
they must have only armed their enemies to harm them.

i do not trust anyone in the limelight in the Nigerian space (because in the past they have repeatedly disappointed and proven themselves to be hypocrites) but the only Nigerian bank i respected and still do respect is Mr. Atedo Peterside.
A man that was constrained by his vision, strategy and a willingness to b different.
I will like to hear his constructive criticism of the present debacle.

Yes, that is one man i also respected a lot, and still do. He is an ICON in the banking industry.
I think one reason he is a bit different from all the others is that he is or was more of an INVESTMENT BANKER and not a commercial one like the rest of the cowboys. Correct me if i am wrong, but IBTC was not involved in the sort of things the Oceanics, Intercontinentals etc were involved in. IBTC (until they merged with Chartered, Stanbic and co) had maybe a total of 5 or 6 branches nationwide, while the others were planting branches, whether or not there were business cases for such. I think these things all border on management, maturity and foresight - of which i think Atedo Peterside had.

August 14, 2009 08:10

Atedo Peterside, chairman Stanbic/IBTC spoke to NEXT on CBN’s meeting with bank heads earlier today in Lagos

'The meeting was handled expertly by Dr, Lamido Sanusi. The mood was sober. His delivery was measured, and it was obvious that he chose each word very carefully. He told us some home truths, but in reality, we’ve known the truth all along. The good news is that the federal goverment is committed to making sure that no banking institution will be allowed to fail.

They will coerce the banks to come clean and recognise their losses immediately. The CBN will inject equity, if necessary. They will go after the individuals, executive management and debtors who erred, but will save the banks and so, depositors need not panic.'

http://www.234next.com/csp/cms/sites/Next/Home/5444510-146/We_have_known_the_truth_all.csp

mbulela:

Jarus, thank you for this thread.
I personally find your posts refreshing and insightful.
i remember the two men very well and remember Commerce bank too well.
they were the super bank and super bankers of those days.
i remember that Gamaliel Onosode was the bank chairman at a time and left shortly before the collapse.
foe that he earned my respect (considering that i am very cynical about the Nigerian elite).
i also remember that Wakilin Adamawa was a major shareholder of that bank.

the problem i have is why present day super bankers refused to learn anything from the debacle of the likes of Crystal bank and Commerce bank of the past?
their is an inherent greed in capitalism that cuases innovation and progress to thrive but their must be a fine line where the majority must refuse to cross.today banks have blurred the line and infact made it non existent.everything seems to go.
regulation is the moral compass of capitalism.in this regard, the CBN has failed the country.

 would you say commerce bank did what no other bank in nigeria did?

i dont know why we hate truth. go back i have been saying for years here that Union bank, UBA, first bank and the rest were always transferring bad and doubtfull debts from Lagos and other state capitals into  the books of rural branches the owners of the debts never went into from way back 1980S so why was  commerce bank singled out?.   whatever they practised at the bank they saw UBA and the others got away with that is the truth.

personally i think they made themselves vulnerable when they began to acquire some prestige debt portfolios from the 3 big banks.  dint forget osayameh already had trouble from the 3 northen guys i mentioned earlier within UBA  who saw it fit to lock him away as UBAs AGM personell to take him out commercial banking they knew was his domain.  he left to start his commerce bank and sadly didn't take care of the power politics of the northen mafia and some greedy Yoruba's within the system.

rikkyjen:

Osayameh and Adekanye's ordeal was way more than misappopriation.

Yes, they mismanaged and they were incomepetent to an extent but there was a tinge of politics in it.

With the way Abacha used the failed bank tribunal to hunt this guy's, you would think Abacha was concieved of the Virgin Mary!

Not only was Osayameh and Adekanye hunted, the entire board of Commerce Bank were hunted.

I happen to share blood and a last name with one of the men on the board of Directors at commerce bank.

HE lost everything, soldiers, godo-godo and MOPOL destroyed, vandalised and confiscated everything that had his name on it.

His house which had the imprint of obscene wealth(where did he get all that money from sef!) was mowed down by bulldozers with cars and properties still in it!. Dude couldn't pick a pin from the house before he bailed out and went on some exile as the military junta were all over everywhere looking for this guy. Personally, i was directly hit by this. How many times did MOPOL and Aboki soldiers ravage my house looking for this guy? Tons of times!  

Banking in Nigeria needs a lotta sanitation and am glad Sanusi is cleansing the augean stables even though he also definitely has some skeletals in his cupboard. But if it entails the "animals" wiping out themselves (as Sanusi is doing) would make Nigeria better. Thats fine! Am all for that!

thanks for the insight. most people believe everything they read in nigeria's political & tribal newspaper.  osayameh was already being lined up for big scandal from within UBA when he was with them but the power that be didnt think it  was ok as if may affect the bankwho gladly took him to lagos to  frustrate and were very glad to see him jump out of the system.  

unfortunately that was the motivation / vengeance for taking over some of the facilities that later became an albatross on his neck. dont forget UBA was already over exposed to ile-oluji and other ondo related facilities as at when he left so

87, 88 and 89 were some dangerous banking years in nigeria when some of the wicked instability harvest we are reaping today were sown.

mbulela:

there might have been a case of tribalism and victimisation but the truth of the matter was that recklessness was the bedrock of the failure of commerce bank.
they must have only armed their enemies to harm them. this is why we counsel everyman to choose his fights wisely.  they made so many enemies who saw them as too smart and a threat. it is not easy being managed by people whose only reason for being your boss is they come from certain region is it?  it brings envy and treachery.

i do not trust anyone in the limelight in the Nigerian space (because in the past they have repeatedly disappointed and proven themselves to be hypocrites) but the only Nigerian bank i respected and still do respect is Mr. Atedo Peterside.
A man that was constrained by his vision, strategy and a willingness to b different.
I will like to hear his constructive criticism of the present debacle.

Epiphany:

I Totally agree with you. The responsibility of managing a large company in Nigeria is difficult and tricky. I am of the school of thought that to stay in business in this country, you have to either cheat, turn a blind eye to some unethical practices your company engages in or be cheated. Further to this, i want to say that it is not only the banks that should be audited. Maybe other companies: Insurance, Telecoms, Manufacturing, ministries (Government), Parastatals, the Presidency, and maybe even Churches. It may just be seen that other CEO's have been dipping their fingers into the honey pot. The rot is everywhere. 

In this case though, tribal or not, i see a case of victimization - for one reason or the other. Why? Because i see this as a case of sacking 5 robbers out of a known, lets say 100. Why is Elumelu still a CEO? Ovia, Atuche, Imokhuede and the others? Why is Egwu still a Minister? And Lukman, and others? Why is David Mark still the Senate President? Why is Yar'Adua still the president? Have all these people not made mistakes while in office? Are they performing any better than these CEO's performed?

Mark these words, regardless of what Sanusi does, there is no way the sector can be completely rid of the rot. When new CEO's are appointed and Sanusi leaves office in the future, the next CBN Governor will still find some fault with the new CEO's and MD's. The banking, or any other institution cannot be changed UNTIL THE SITUATION IN THE COUNTRY CHANGES. The banks and their CEO's are a product of the SOCIETY AND THAT CANNOT BE CHANGED BY SACKING 5 OR ALL OF THEM.

you spoke right sir.  thank you.  the same stupid  " PUT A BRANCH"  in my village politician talking of probing banks.  go check the idiots the various govts sent to be directors of these banks in the 70's and 80s and you will know how right you are and how we got here.