House of Reps indict Sanusi Lamido of fraud, forgery over bank nationalization

Posted about 6 hours ago

The document 81-page
document provides,
perhaps, the most indicting revelations
on the sale of three banks by the CBN
last year, a move that has drawn intense
criticism to the regulatory bank under
Mr. Sanusi
A House of Representatives report on
the near collapse of the capital market
says it has found evidence of forgery and
fraudulent misrepresentation involving
the Governor of the Central Bank of
Nigeria, Sanusi Lamido Sanusi, and other top industry officials in the
controversial nationalization of three commercial banks.
The report submitted to the House on Tuesday, says the nationalization of
Afribank Plc, Spring Bank and Bank PHB, violated statutory provisions and
remained a “major source” of investors’ loss of confidence in the troubled
Nigerian capital market.
The document 81-page document provides, perhaps, the most indicting
position on the sale of the three banks by the CBN last year, a move that
has fetched the regulatory bank under Mr. Sanusi, intense criticisms and
accusation of bias.
“This committee is of the view that due process was not followed, and
that investors interests were not considered in nationalizing the banks,”
the House capital market committee, headed by Ibrahim El-Sudi, stated.
“Public officers charged with the responsibility of protecting investors and
depositors did not act in good faith, and there were evidence to suggest
fraud, misrepresentations, and forgeries.”
Those cited to have been involved in the irregularities are the Chief
Executive of the Nigerian Deposit Insurance Corporation, Umaru Ibrahim,
Managing Director, Asset Management Company of Nigeria (AMCON),
Mustafa Chike-Obi, the CBN governor, Mr. Sanusi, the Registrar of the
Corporate Affairs Commission (CAC), Belo Mahmud, and the Director
General of the Securities and Exchange Commission, Arunma Oteh.
The committee faulted Mr. Sanusi for a range of several other anomalies
and breach of procedures, and accused the CBN boss of deliberately
withholding information from the lawmakers during the investigation.
It also indicted Ms. Oteh of multiple cases of irregularities, and accused
the SEC DG of fraudulent conduct.
Ms. Oteh was recalled by the federal government on Wednesday after
about a month on suspension. Her recall came as the House committee
tabled its report.
On the nationalization of Afribank, the committee detailed shocking
highlights of the behind-the-scenes leading to the change. The committee
said the bank’s name was changed to Mainstreet Bank Limited, a private
company with share capital of 100,000 ordinary shares of N1 each, owned
by two persons, Gideon Agbedo, a lawyer, and a certain Innocent Obi.
The committee said it found out the Articles and Memorandum of
Association transferring the ownership to the individuals, was stamped
and verified by the CAC authorizing them to “assume all or part only of
the deposits and liabilities of Afribank” and to “purchase such assets of
Afribank” as are acceptable to the board.
This meant a publicly quoted company was acquired by a private
company owned by two persons, the committee said.
Further, a Certificate of Incorporation no RC 969929 dated 5th August,
2011, signed by Bello Mahmud, Registrar General-CAC , certified that
Mainstreet Bank was previously called ‘SHOKO CHUKIN LIMITED’.
“This action is completely false and dubious,” the committee said.
Again, the committee said the position of AMCON, CBN, SEC etc that the
nationalized banks were owned 100 per cent by AMCON, were deliberate
falsehood as it was clear the two individuals owned the banks with nine
other names as the Directors of the bank.
For Bank PHB, changed to Keystone bank, the committee said a similar
fraud was perpetuated with share capital of 100 000 ordinary shares of
N1 each were owned by one Benson Igbanoi and the same Innocent Obi of
Mainstreet Bank.
The object of Keystone Bank ltd was similar to that of the Mainstreet
Bank, and has a Certificate of Incorporation no RC 969956 which certifies
that Keystone Bank Ltd was previously called Michi Noku Resolution
limited, another alleged fraud.

Source: Premium Times