biina:

I find it amusing (and a quite disappointing), that not one of the anti-Sanusi poster has proclaimed the innocence of the sacked executives. Rather they are focused on speculating as to the ulterior motives of the action.
If said executives are indeed guilty of malpractices should they not be sacked?

Sanusi (and anyone that has been a top executive in the banking sector for a substantial time), has a good idea of who the main culprits are of banking malpractices. The audit only serves to confirm suspicion and thus would have started from the most suspicious banks. To start otherwise, or waste time in taking action, is to lose his advantage and possibly the opportunity.

For those that argue of a northern buyout, Sanusi sacked the executive and not the shareholders, and so I dont see what is stopping same shareholders from appointing new executives. It only becomes an opportunity for a takeover, if the shareholders cannot put forward credible executives, and thus decide to pull their funds from the bank on the grounds that their interests cannot be protected. In which case, it is good riddance to bad rubbish.

If indeed Sanusi is simply protecting Northern interests, can same not then be said of his predecessor protecting southern interest (afterall no one was brought to book when Soludo was in office)? If Sanusi weeds out the southern bad eggs and ignores the northern ones, do we not only need to wait for a southern CBN governor to cull the remaining Northern weeds?

I am all for kicking out any bad eggs in the sector, and would rather we focus on suggesting policies that would ensure that the decay is not repeated, than speculate as to the ulterior motives of Sanusi or some phantom northern oligarchy.

biina:

I find it amusing (and a quite disappointing), that not one of the anti-Sanusi poster has proclaimed the innocence of the sacked executives. Rather they are focused on speculating as to the ulterior motives of the action.
If said executives are indeed guilty of malpractices should they not be sacked?

Sanusi (and anyone that has been a top executive in the banking sector for a substantial time), has a good idea of who the main culprits are of banking malpractices. The audit only serves to confirm suspicion and thus would have started from the most suspicious banks. To start otherwise, or waste time in taking action, is to lose his advantage and possibly the opportunity.

For those that argue of a northern buyout, Sanusi sacked the executive and not the shareholders, and so I dont see what is stopping same shareholders from appointing new executives. It only becomes an opportunity for a takeover, if the shareholders cannot put forward credible executives, and thus decide to pull their funds from the bank on the grounds that their interests cannot be protected. In which case, it is good riddance to bad rubbish.

If indeed Sanusi is simply protecting Northern interests, can same not then be said of his predecessor protecting southern interest (afterall no one was brought to book when Soludo was in office)? If Sanusi weeds out the southern bad eggs and ignores the northern ones, do we not only need to wait for a southern CBN governor to cull the remaining Northern weeds?

I am all for kicking out any bad eggs in the sector, and would rather we focus on suggesting policies that would ensure that the decay is not repeated, than speculate as to the ulterior motives of Sanusi or some phantom northern oligarchy.

naijaking1:

This thread is about Sanusi, so please don't confuse the issue. The culpability or otherwise of the sacked CEOs are already before the courts.

Just like Sanusi, these bank CEOs have a discretion on management issues. To disagree with them about their style is one thing, but to criminalize their style simply because you disagree is quite another. Bye the way, Sanusi's tendency to squash the opposing view is evident in the manner he fired the 2 deputy CBN governors who opposed his unorthodox style. Somebody ought to teach Sanusi that there's some degree of democracy in the boards of banks and parastatals.

You have forgotten that Sanusi did not have time to consult the shareholders in this case. Infact, he announced replacement of the CEOs without any reference to the people who have money in the bank. He didn't only replace CEOs, he even dissolved the board of directors.

With time Sanusi's long term goal would become apperent no matter how much he want to confuse and obsfucate. It's no secret that like many other northerners, he wants more control of the banks. At the moment, he was quoted as looking to have Asians buy into 2 of the dissolved banks. Whether it's a backyard approach to handing control of these banks to northerners, time will tell. The truth is that more southerners put their money in these banks, so why the surprise that they control most of them?

biina:

Are you not questioning his objectivity? and if said CEOs are indeed guilty, where then is the lack of objecvtivity?
Doctoring accounts is not 'discretion on management issues'.

Any organizational head is justified to relieve of his position any subordinate that is deem not doing enough to fulfill his duties. I doubt you raised an eyebrow when Soludo sacked Wahir Mshelia.

The CBN has appointed interim CEO/MDs along with injection of funds, which I believe is fair enough and fully within its capacity as the apex bank. He also did not dissolve the entire board, but only removed executive directors. The shareholders still own the bank and have the right to appoint executives once the interim period is over.

Why don't you wait till then, instead of making unsubstantiated claims as to a planned takeover by a phantom Northern oligarchy

naijaking1:

Nobody is holding brief for any corrupt CEOs, but they must be given due process, whether you like it or not.

Is it pay back time? I beg, people money are on the line in many of these banks.

So-called injection of 400billion into 5 banks worth more than 1 trillion hardly justifies as an excuse to nationalize the banks. Sure the shareholders still own the banks, but that's to the extent that the new board will not hopelessly dilute their share strenght.

At least we agree on one thing, wait and see.

naijaking1:

@biina
You're the one crying wolf, otherwise how do you support Sabusi against the 5 CEOs? If you and Sanusi had not cried wolf, maybe someone would have been more objective in evaluating and correcting any percieved shortcomings in our banking sector without resorting to this crude, brutal, and illegal way of changing the banks' ownership.

Meanwhile, every new available evidence pulls the rug off Sanusi's feet, and yours too.
https://www.nairaland.com/nigeria/topic-315416.0.html#top

rhymz:

Just like I have been arguing since Lamido for reasons best known to him rushed to anounce the sack of these CEOs and further plunge into details of how insolvent thier banks were and almost even declared them bankrupt,obviously,this decision does't look like it was well thought out.Now there are reports that these 5 banks might need up 1trillion due to thier indebtedness both to the CBN and other banks.The question that comes to mind is,what if they discover at the end of the audit exercise that more banks are deeply insolvent?Yes,he was able to decipher the insolvency symptoms from these five banks due to the fact that they accounted for more than 80% of the EDW and the inter-bank market but are these enough guarantees to conclude that the remaining 13 banks won't throw up another shocker?He must have underestimated the extent of the problem to think that anouncing the overhaul of the managements and injecting a mere #400bill into these 5 banks will solve the problem,I guess he now realizes that the problem goes far beyond risk management.For instance,according to report,one of the banks almost immediately exhuasted it's own share of the #420bill,it was reported that the said bank was owing CBN #60bill and other banks #70bill,one just wonders if sanusi and his team did a thorough audit of these banks before rushing out cos obviously they ve been caught unawares.Another question which many of us re not asking is where are these funds coming from?I mean this is a government that is still deadlocked with ASUU over funds talking about saving 5 privately owned banks with #1trillion.Besides,does the national assembly know about this?Is this mystery money coming from Yaradua's or Lamido's pockets?If it's from our reserves then I want to believe it's not a CBN solo project,the merits and demerits of releasing this huge amount will ve to be debated at the national assembly and this might take time,my gues is the banks will have to wait.
I believe Sanusi should ve been a bit patient and do a thorough auditing on all the 23 banks,work out less fatal modalities for solving this problem especially in these areas:formulate laws that make it almost impossible to indulge in bad corporate governance etc,root out the bad eggs in the CBN that ve hitheto given pass marks to these banks even when it was glaringly clear that they were gravely distressed,go after the crooks that have collected huge non-servicing loans from these banks without making any attempts to pay back,evaluate the actual extent of the problem so as to know how much fund to be mobilised to solve the problem and then finally, systematically depose of the management team of the failing banks.This way,his sanitization exercise will be more effective and ppl won't ve any insinuations but with his present mafia style,which makes the situation more about him, there's so much to read into it and they re very strong arguements.God help this country,Sanusi to me,does luk like he has the wit of a CBN governor,he thinks he can be successful without the same ppl he is tryin to fight.The guy is not thorough at all.Rist mgtment my ass.