[size=14pt]CBN clears sacked bank chiefs for new jobs[/size]
*Okays return  of seized properties, passports
By Omoh Gabriel & Victor Ahiuma-Young

Indications emerged, weekend, that the Central Bank of Nigeria, CBN, has been secretly giving clearance to executive directors of  the rescued banks, raising questions as to why they were sacked in the first instance.
Some top management staff of the apex bank who disclosed this to Vanguard, said letters have been going out from the Governor’s Office since January to the affected directors, saying that CBN has not blacklisted them.
The officials added that CBN’s letter also stated that the affected executive directors could seek gainful employment in the financial services sector and that security agencies had been advised to release the EDs’ seized properties and travelling documents.
According to the CBN officials, almost all the executive directors of the rescued banks had been issued the letters except one or two that have refused to cooperate with CBN and the Economic and Financial Crimes Commission, EFCC.
The executive directors were sacked along with their managing directors by CBN Governor, Mr. Lamido Sanusi, on the allegations of running down the banks and putting them in grave situation.

Sanusi’s letter
A copy of such letters signed by Sanusi reads in part:
“Please, refer to my order dated 14 August 2009, directing your removal as an Executive Director of …. bank. Following the said order, several representations were made to the Central Bank of Nigeria (CBN), for a review of the circumstances leading to your removal from office.
“The management has duly considered these representations and wishes to state that your removal does not amount to being blacklisted by  CBN. Accordingly, CBN hereby confirms that it has no objection to your seeking employment in the financial services sector subject to the express approval by CBN where required.

“However, it should be noted that the position stated above does not constitute a waiver of any action which CBN or any other agency of government may take against you should the on-going investigation in … bank reveal any serious misconduct or any infraction of extant laws or regulations.
“All relevant agencies are being advised to release your travel documents or any property in their possession,” the letter stated.

Sanusi’s action hasty
CBN officials said that usually when anybody is sacked from a bank or any financial institution, he/she is blacklisted by CBN and will not be employed by any bank in the country.
By this, the official said, CBN has nothing against these bank executive directors and should not have been sacked in the first instance. It shows, they said, that the Governor’s action was hasty. If he now realised that he made a mistake by sacking the bank chiefs, he should do the proper thing by restoring them back to their jobs.
It will be recalled that CBN on August 14 sacked the managing director/chief executives and executive directors of five banks to wit, Afribank Plc, Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc and Union Bank Plc. Two other banks— Bank PHB and Equatorial Bank— followed in October.
The affected chief executives were  Mr. Sebastin Adigwe (Afribank); Mr. Okey Nwosu (Finbank); Dr. Erastus Akingbola (Intercontinental Bank); Dr. (Mrs.) Cecilia Ibru (Oceanic Bank) and Dr. Bath Ebong.
The apex bank also announced the appointment of new chief executives for the banks namely —Mr. John Aboh, MD/CEO, Oceanic International Bank Plc;  Mr. Mahmud L. Alabi,  MD/CEO; Intercontinental Bank Plc, Mrs. Suzanne Iroche, MD/CEO, Finbank Plc; Mrs. Funke Osibodu, MD/CEO, Union Bank Plc.
Why bank chiefs were sacked
Sanusi had said the banks’ officials were removed due to high level of non-performing loans in the five banks which was attributable to poor corporate governance practices, lax credit administration processes and non-adherence to the banks’credit risk management practices.
He added that CBN was also injecting N400 billion tier two capital into the five banks to salvage the financial condition banks.
He said, “As at June 4, 2009, when I assumed office as Governor of CBN, the total amount outstanding at the Expanded Discount Window, EDW, was N256.571bn most of which was owed by the five banks.
”A review of the activity in EDW showed that four banks had been almost permanently locked in as borrowers and were clearly unable to repay their obligations. A fifth bank had been a very frequent borrower when its profile ordinarily should have placed it among the net placers of funds in the market.
”Whereas the five banks were by no means the only ones to have benefited from EDW, the persistence and frequency of their demand pointed to a deeper problem and CBN identified them as probable source of financial instability, most likely suffering from deeper problems due to non-performing loans.”
Sanusi declared that, the impact of the situation of these banks was being felt by the market in different negative ways. Because of this strain in their balance sheets, the banks pushed up the interest rate paid to private sector deposits and their competitors had to follow suit.
They also contributed to the destabilisation of the inter-bank market as many of their competitors were unwilling to take an unsecured risk on them. It was primarily because of these banks, or, at least some of them, that CBN took the step of guaranteeing the inter-bank market when it stopped granting new lines under EDW.
Without that guarantee, almost four banks would not have been able to borrow in the inter-bank and would probably have collapsed.
According to him: ”As you are aware, we guaranteed the inter-bank market to give us the time to conduct a thorough diagnostic of the banks and ensure that appropriate remedial action is taken. At least, four of the banks in question, have since the guarantee came into force either remained heavy users of funds at the EDW or drawn heavily from other banks under cover of  CBN guarantee to wind-down at this window. In all events, it is clear that they do not have the ability to meet their obligations to depositors and creditors.”

http://www.vanguardngr.com/2010/06/28/cbn-clears-sacked-bank-chiefs-for-new-jobs/

I have always said it.

Sanusi is confused .

Can someone please explain why this man is 'reversing' his stance on the bank CEOs?

Was it not the same Sanusi that said the bank CEOs should face firing squad for robbing their banks dry?

Hiss.

Anyways, i guess this is just one of the many reversals to come !

What we expect from him next is to 'reverse' the bank interest rates on deposits to the 10 percent and above it was before he came in

funkybaby:

I have always said it.

Sanusi is confused .

you can say that again

no biggie.


soja come soja go.

funkybaby:

I have always said it.

Sanusi is confused .

Can someone please explain why this man is 'reversing' his stance on the bank CEOs?

Was it not the same Sanusi that said the bank CEOs should face firing squad for robbing their banks dry?

Hiss.

Anyways, i guess this is just one of the many reversals to come !

What we expect from him next is to 'reverse' the bank interest rates on deposits to the 10 percent and above it was before he came in

It would help if you actually READ the frigging article, young lady. It usually does.

The FG had been uncomfortable with Sanusi's shenanigans hence they had to invite him and pull his ear a little,it was change your ways or be booted out,dude chose the former(wise choice by a hypocritical islamic bigot who'd said the day the FG loses confidence in him,he'd resign that very minute)

“Please, refer to my order dated 14 August 2009, directing your removal as an Executive Director of …. bank. Following the said order, several representations were made to the Central Bank of Nigeria (CBN), for a review of the circumstances leading to your removal from office.
“The management has duly considered these representations and wishes to state that your removal does not amount to being blacklisted by CBN. Accordingly, CBN hereby confirms that it has no objection to your seeking employment in the financial services sector subject to the express approval by CBN where required.

“However, it should be noted that the position stated above does not constitute a waiver of any action which CBN or any other agency of government may take against you should the on-going investigation in … bank reveal any serious misconduct or any infraction of extant laws or regulations.
“All relevant agencies are being advised to release your travel documents or any property in their possession,”

A bit of a climbdown considering his earlier rhetoric regarding these same people. I wonder whether he faced pressures from above.

funkybaby:

I have always said it.

Sanusi is confused .

Can someone please explain why this man is 'reversing' his stance on the bank CEOs?

Was it not the same Sanusi that said the bank CEOs should face firing squad for robbing their banks dry?

Hiss.

Anyways, i guess this is just one of the many reversals to come !

What we expect from him next is to 'reverse' the bank interest rates on deposits to the 10 percent and above it was before he came in

one u didnt understand what u read
two, u dont understand how interest rates work

and as for the tpic, i wonder why they havent sued the man
just wondering? do they know what we dont know?
hehehe

i laff in pidgin

This is a rumour a false one

Media lies

xterra2:

This is a rumour a false one

otokx:

Media lies

I beg go read the newspaper, before opening your ignorant mouths. You can start from here: Business Day yesterday---- your favorite paper.

http://www.nigeriamasterweb.com/paperfrmes.html

[size=18pt]CBN clears sacked bank chiefs for new jobs[/size]
Headlines Jun 28, 2010
CBN headquaters, Abuja
*Okays return of seized properties, passports

By Omoh Gabriel & Victor Ahiuma-Young

LAGOS— Indications emerged, weekend, that the Central Bank of Nigeria, CBN, has been secretly giving clearance to executive directors of the rescued banks, raising questions as to why they were sacked in the first instance.

Some top management staff of the apex bank who disclosed this to Vanguard, said letters have been going out from the Governor’s Office since January to the affected directors, saying that CBN has not blacklisted them.

The officials added that CBN’s letter also stated that the affected executive directors could seek gainful employment in the financial services sector and that security agencies had been advised to release the EDs’ seized properties and travelling documents.

According to the CBN officials, almost all the executive directors of the rescued banks had been issued the letters except one or two that have refused to cooperate with CBN and the Economic and Financial Crimes Commission, EFCC.

The executive directors were sacked along with their managing directors by CBN Governor, Mr. Lamido Sanusi, on the allegations of running down the banks and putting them in grave situation.

Sanusi’s letter

A copy of such letters signed by Sanusi reads in part: “Please, refer to my order dated 14 August 2009, directing your removal as an Executive Director of …. bank. Following the said order, several representations were made to the Central Bank of Nigeria (CBN), for a review of the circumstances leading to your removal from office.

“The management has duly considered these representations and wishes to state that your removal does not amount to being blacklisted by CBN. Accordingly, CBN hereby confirms that it has no objection to your seeking employment in the financial services sector subject to the express approval by CBN where required.

“However, it should be noted that the position stated above does not constitute a waiver of any action which CBN or any other agency of government may take against you should the on-going investigation in … bank reveal any serious misconduct or any infraction of extant laws or regulations.

“All relevant agencies are being advised to release your travel documents or any property in their possession,” the letter stated.

Sanusi’s action hasty
CBN officials said that usually when anybody is sacked from a bank or any financial institution, he/she is blacklisted by CBN and will not be employed by any bank in the country.

By this, the official said, CBN has nothing against these bank executive directors and should not have been sacked in the first instance. It shows, they said, that the Governor’s action was hasty. If he now realised that he made a mistake by sacking the bank chiefs, he should do the proper thing by restoring them back to their jobs.

It will be recalled that CBN on August 14 sacked the managing director/chief executives and executive directors of five banks to wit, Afribank Plc, Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc and Union Bank Plc. Two other banks— Bank PHB and Equatorial Bank— followed in October.

The affected chief executives were Mr. Sebastin Adigwe (Afribank); Mr. Okey Nwosu (Finbank); Dr. Erastus Akingbola (Intercontinental Bank); Dr. (Mrs.) Cecilia Ibru (Oceanic Bank) and Dr. Bath Ebong.

The apex bank also announced the appointment of new chief executives for the banks namely —Mr. John Aboh, MD/CEO, Oceanic International Bank Plc; Mr. Mahmud L. Alabi, MD/CEO; Intercontinental Bank Plc, Mrs. Suzanne Iroche, MD/CEO, Finbank Plc; Mrs. Funke Osibodu, MD/CEO, Union Bank Plc.

Why bank chiefs were sacked
Sanusi had said the banks’ officials were removed due to high level of non-performing loans in the five banks which was attributable to poor corporate governance practices, lax credit administration processes and non-adherence to the banks’credit risk management practices.

He added that CBN was also injecting N400 billion tier two capital into the five banks to salvage the financial condition banks.

He said, “As at June 4, 2009, when I assumed office as Governor of CBN, the total amount outstanding at the Expanded Discount Window, EDW, was N256.571bn most of which was owed by the five banks.

”A review of the activity in EDW showed that four banks had been almost permanently locked in as borrowers and were clearly unable to repay their obligations. A fifth bank had been a very frequent borrower when its profile ordinarily should have placed it among the net placers of funds in the market.

”Whereas the five banks were by no means the only ones to have benefited from EDW, the persistence and frequency of their demand pointed to a deeper problem and CBN identified them as probable source of financial instability, most likely suffering from deeper problems due to non-performing loans.”

Sanusi declared that, the impact of the situation of these banks was being felt by the market in different negative ways. Because of this strain in their balance sheets, the banks pushed up the interest rate paid to private sector deposits and their competitors had to follow suit.

They also contributed to the destabilisation of the inter-bank market as many of their competitors were unwilling to take an unsecured risk on them. It was primarily because of these banks, or, at least some of them, that CBN took the step of guaranteeing the inter-bank market when it stopped granting new lines under EDW.

Without that guarantee, almost four banks would not have been able to borrow in the inter-bank and would probably have collapsed.

According to him: ”As you are aware, we guaranteed the inter-bank market to give us the time to conduct a thorough diagnostic of the banks and ensure that appropriate remedial action is taken. At least, four of the banks in question, have since the guarantee came into force either remained heavy users of funds at the EDW or drawn heavily from other banks under cover of CBN guarantee to wind-down at this window. In all events, it is clear that they do not have the ability to meet their obligations to depositors and creditors.”

erm why is the article from Vanguard exactly the same as the one for BUsinessday


word for word

^^^^
for people who think it's a fake, a rumor, or whatever.

Dis sanusi guy often acts like someone who gets his inspiration from a beer parlour. Hence the inconsitencies. Abeg I fit'nt shout.

I don't really get why this is raising eyebrows. The article clearly indicates that all the affected chiefs that have been let off the hook had co-operated fully with the EFCC and the CBN.
If someone gets sacked for non-performance or incompetence, is that reason enough to blacklist the person from employment in their industry?

texazzpete:

I don't really get why this is raising eyebrows. The article clearly indicates that all the affected chiefs that have been let off the hook had co-operated fully with the EFCC and the CBN.
If someone gets sacked for non-performance or incompetence, is that reason enough to blacklist the person from employment in their industry?

Oga , except if you are only trying to explain the article to suit yourself. on the bolded parts, you seem to be the only one seeing it that way.

na_so:

Oga , except if you are only trying to explain the article to suit yourself. on the bolded parts, you seem to be the only one seeing it that way.

Please read this excerpt from the article

naijaking1:


According to the CBN officials, almost all the executive directors of the rescued banks had been issued the letters except one or two that have refused to cooperate with CBN and the Economic and Financial Crimes Commission, EFCC.

If i'm not reading this right, care to explain what that part means?

texazzpete:


It would help if you actually READ the frigging article, young lady. It usually does.

Gentleman, i did READ the article.

Is there something i missed? Care to point it out to me?

funkybaby:

Gentleman, i did READ the article.

Is there something i missed? Care to point it out to me?

Yes.

funkybaby:


Can someone please explain why this man is 'reversing' his stance on the[b] bank CEOs[/b]?

Was it not the same Sanusi that said the bank CEOs should face firing squad for robbing their banks dry?

The article says NOTHING about the bank CEOs. All references being made are to the bank executive directors that were removed.
The Bank CEOs (Ibru et al) ain't coming back.

texazzpete:

The article says NOTHING about the bank CEOs. All references being made are to the bank executive directors that were removed.
The Bank CEOs (Ibru et al) ain't coming back.

Oh . Thanks for pointing that out.

I will read between the lines next time

Thank you Texazzpete

tkb417:

Thank you Texazzpete

Gerroutttt

Useless journalists of Nigeria are as usual misleading the public.

The half-baked twats that authored this story, should realise that people can be rightfully sacked for incompetence.

But incompetence is not necessarily a criminal act. And you can not on the grounds of incompetence in one job, that is not criminal, deny people the right to earning a living. The human rights to do such (earn a living) is protected.

These twats should stop promulgating moronic views that CBN respecting human rights is a sign they must have erred by sacking people for incompetence.

Sanusi acts before he thinks!

he was supposed to have finished investigation before sacking and arresting

evil666:

Sanusi acts before he thinks!

he was supposed to have finished investigation before sacking and arresting

You think he should leave people's life savings at risk and risk economic collapse due to systemic failure, when all internal risk management indicators point to banks in bad shape due to irresponsible lendings that can not be explained or clear criminal acts?

evil666:

Sanusi acts before he thinks!

he was supposed to have finished investigation before sacking and arresting

When did Sanusi do any 'arresting'?

funkybaby:

Oh . Thanks for pointing that out.

I will read between the lines next time

Hehe.
Even though you're one of the anti-Sanusi mob, i've always liked you .

texazzpete:

Please read this excerpt from the article

If i'm not reading this right, care to explain what that part means?

According to the CBN officials, almost all the executive directors of the rescued banks had been issued the letters except one or two that have refused to cooperate with CBN and the Economic and Financial Crimes Commission, EFCC.

The CEO'S are still wanted but almost all executive directors have been cleared save 3. I dont see how from your explanation this move is to make the directors cooporate with EFCC.

If we understand how this banks run , then it insults common sense that all the EDs have been cleared to return to the industry while sanusi's original claim on the banks and the CEOs remain.

With an average figure of 5 EDs each from the 8 queried banks, we are saying that about 35 have been cleared and nobody is asking sanusi questions? Haba.

I am beginning to sense that sanusi is just waking up to the difficult task of justifying his rash actions in court and is only seeking other forms of settlement.

na_so:

The CEO'S are still wanted but almost all executive directors have been cleared save 3. I dont see how from your explanation this move is to make the directors cooporate with EFCC.

If we understand how this banks run , then it insults common sense that all the EDs have been cleared to return to the industry while sanusi's original claim on the banks and the CEOs remain.

With an average figure of 5 EDs each from the 8 queried banks, we are saying that about 35 have been cleared and nobody is asking sanusi questions? Haba.

I am beginning to sense that sanusi is just waking up to the difficult task of justifying his rash actions in court and is only seeking other forms of settlement.

What do you mean 'from my explanation'? I just quoted a section of the article we're all commenting on which clearly indicates that the EDs that are no longer blacklisted (if they ever were) had co-operated fully with the investigations by the CBN and EFCC.
Allowing them to return to work does not automatically mean they do not have questions to answer on their incompetence or poor performance. Someone sacked for poor performance in Agip, does that mean the person should not be allowed to seek work in Total? Does that indicate an issue on the part of Agip in thi analogy?

People, please find reasonably good ammunition if you want to turn public opinion about Sanusi, not this obvious grasping of straws.

The basic principle of sacking people and investigating them later is sickening. One would think and hope that if he/she is ever suspected of any wrong doings that investigations be properly carried out first and punishments later. This reversal underlines the difficulty Sanusi is having in climbing the steep learning curves involved in his job. Unfortunately, the office of our nation's chief economist doesn't have much room for on the job training without sacrificing so much.

naijaking1:

The basic principle of sacking people and investigating them later is sickening. One would think and hope that if he/she is ever suspected of any wrong doings that investigations be properly carried out first and punishments later. This reversal underlines the difficulty Sanusi is having in climbing the steep learning curves involved in his job. Unfortunately, the office of our nation's chief economist doesn't have much room for on the job training without sacrificing so much.

If you hired someone to guard a set of 100 high-security vaults with valuable contents. The guard lives in the premise of the vaults and is the only one with access to the vaults. It is common knowledge that the guards are usually complicit in stealing contents from the vaults. You have periodical times you come to check if everything is secure and on one occasion of these checks you find that 4 of the most expensive vaults have been looted but there is no evidence of a break-in and the guard has no explanation of how anything went missing.

Do you leave him to continue guarding the vaults whilst you investigate how the 4 vaults content got missing or do you replace him before the investigation to safeguard the remaining 96 vaults?

texazzpete:

Hehe.
Even though you're one of the anti-Sanusi mob, i've always liked you .

I have always liked you too despite the fact that you are pro-sanusi

Why you continually defend this clueless man baffles me.