Reviewing The Appointments By Cbn

The disclosure today of the appointments made by the CBN is another
example of a nation going southwards at a rapid pace,

Today is unlike any other day. Something changed today and we must
ask ourselves some hard questions.

The Central/Key Question:

What has happened to the Nigerian intelligesia - Why is no one
asking or answering a fundamental question that goes to the heart of
our nationhood: Where does ownership rights of firms/shareholders end
and regulatory rights begin?

What is going on in this country?

These are landmark developments that define us as a people and a
nation. Our economy and socio-political life is dependent on the
resolution of this one question.

While we all acknowledge that things have gotten too bad and that
action was needed to be taken, enter SLS and we expected that radical
changes - much anticipated will occur to shake our banking foundations
becaue it was rotten. He was a man whose value system indicated that
he would not be moved by self interest or the very trappings of
wealth that made others dizzy. He started controversially, but we
could all live with that because we knew that achieving change in
nigeria was not going to be easy.

The developements - flip flops, actions and unclear basis of actions
since then have all made us all to stop and wonder. What could be
going on. This is no longer a case of those affected spinning issues
- it is about rights and responsibilities, the very underpinning of
this administration.

When the appointments of new ED?s were released we saw some odd
names there but most analyst decided to let it go because we felt we
should cut him some slack ? after all there cannot be a perfect
being and in this endeavour we accepted that there would be a few
missteps.

But the appointments he made today leave much room for concern. They
concretise the legitimate fears of a decision process not designed to
deliver the el dorado we seek as a people.

We should be asking questions from CBN, in the spirit of full
disclosure. They should provide insight, explanations and information
to the following:

1. What criteria were used in the appointments of CEO?s and
Executive Directors of these banks?

2. Did it consider the rule that said that former directors of a
failed bank cannot be appointed into an executive position of another
bank?

3. How do you situate the appointment of a CEO who was asked to
resign from the management of a failed bank so many years ago from
the position of a Treasurer based on incompetence to manage a bank?

4. What input did the new boards have in these appointments?

5. How do we deal with the new reality of customers choosing not to
do business with any of the banks with such leadership challenges?

6. Why does the ?rush? to raise funds through issuance of
corporate bonds by the banks cleared in the first wave of the SLS
audit support the ?coincidence theory? of the action taken?

7. Why would a bank like Wema Bank Plc (with Tunde Lemo as former
CEO now at CBN) explain the 2007 audit report by the NDIC that it
never had the N25bn which was the basis of the bank licence to
operate under the consolidation era especially with the ?mud?
thrown out for which no concrete explanation was provided?

8. What does the CBN want the market to take away from this exercise
where the banks cleared in the first wave are not able to explain away
their problems giving the revelation that some of them are now chasing
debtors whom they had giving uncollaterised loans and are calling same
in with limited success?

9. what happens to investors who are now at the mercy of CEO's and
ED'S who have no stake in business?

10. Who does the new CEO'S report to?

11. Why would this individuals, who appear not have succeeded in
running or owning anything in their lives at scale and magnitude they
are now being asked to manage, take on this assignment? What is their
motivation and who do they represent - regulators, depositors or/and
shareholders?

12. Did the CEO's needed to have managed a bank before like in the
first set or what was it the second set had and why the difference in
criteria for appointments?

13. Where this people headhunted for the jobs and what is their
brief or since when did they know of their job responsibilities?

14. What is the investment advice to shareholders, depositors or
customers?

15. Are these CEO's going to be non-shareholders in the banks they
run and how do we prevent the 'homogenisation' of banking being put
in place by SLS inevitably.

I am dire need of someone to step up to the plate and provide
answers.

This is a dark day but I am hopeful that someone somewhere will have
a conscience and do the right thing and start asking this question or
seeking answers to the questions raised here.

CBN has deliberately blacked us out and refused to accent to any
request we have. The reasons appear obvious and in such a clime where
anything goes - we are hopeful that what we seek would not lead to a
permanent silencing of our voice.

An EGM was held today by one of the banks (the first beneficiary of
the CBN grand plan) seeking to raise funds and throughout the
meeting, the question on what it seeks to do with the N500bn bond it
seeks was not answered.

What is going on? We definitely cannot continue like
this,

courtesy of PROSHARE

Keep on asking and trying to see the bad part of every good deed just because your heart doesnt want to accept the truth. it is sad how this country will continue if progress will not be seen as progress but a so called hidden agenda.
Its waste of time minding such bogus write ups without concrete evidence. Cant we wait and see the outcome? Or what will these write up achieve? Breakups?
For your information what ever it is, the deed has been done and we shall pray for the betterment of our nation and there is nothing you and I can do at the moment.