Cbn Moves To Return Etb Back To The Bull, The Guru Dr. Mike Adenuga

They took away the bank only to return it back to this man in less than 3 wks. What a senseless and ridiculous move.

Why was he removed in the first place?
What happened to following the appropriate steps before pulling the trigger?

Instead of quickly concluding to sack the man without clearly understanding what was on the ground, why didn't they suspend him till all stones had been turned?


I think CBN has taken away their integrity for making this unnecessary mistake.

It is only fair to assume that this is the first in what will be a litany of back room resolution deals for the so called big stick weilded on elite Nigerian politians-businessmen.

The question is why was the economy brought to disrepute if we will resort to old ways of doing things to resolve the problems.

Where is the transparency?

Sanusi just needs to realise that we are a developing economy that needs careful nuturing and not empty tough talk.

My Mentor,

THE BULL. 
 

Stakeholders, Experts Hail Plan To Return ETB To Adenuga - Make Case For Other Family Banks - Lambast CBN On Regulatory Deficit

http://www.tribune.com.ng/24102009/news/news6.html

The decision of the Central Bank of Nigeria (CBN) to return Equitorial Trust Bank (ETB) to Dr. Mike Adenuga has been described as a welcome development and will go a long way to strenghten the bank.


A cross-section of financial experts, legal luminaries and leaders of shareholders’ groups told Saturday Tribune that CBN had come to the understanding that it goofed, stressing that in the first instance, there were no sufficient reasons to have removed Adenuga from the board of the bank.


According to the former national president, Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe, the apex bank had taken the right decision to retrace its steps on Adenuga, stating that it was necessary for the apex bank to do its homework well before taking any decision in future.


Nzekwe noted that if the sole reason for the re-instatement of Adenuga was hinged on his plan to inject $150 million into the bank, the same measure should be extended to other banks that had sole proprietorship background.


The accountant, who observed that there was nothing wrong with private ownership of banks, urged the apex bank to work on its regulatory and supervisory roles.


On his part, a financial analyst and chief executive of a defunct bank, Mr. Opeyemi Agbaje, called for another look at the modus operandi being adopted by the CBN in sanctioning bank chiefs.


He said that though he was not aware why the apex bank sanctioned the Globacom chairman, the apex bank, according to him, should be more transparent in carrying out sanctions against erring bank chiefs.


Opeyemi opined that there was nothing wrong with one-man bank, stating, however, that “from experience, Nigerians are not able to manage one-man bank. At least, there is no legislation against free enterprise system but what about the regulation and standards?”


According to an Abuja-based legal expert, Mr. Nnodu Okeke, CBN’s decision on Adenuga was commendable, urging the apex bank to relax the sanctions placed on other bank CEOs that have family background.


Nnodu noted that the CBN ought to have allowed for a fair hearing on the part of dismissed CEOs, stating that they could be made to recapitalise the respective banks.


Also commenting, national president, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, stated that the CBN was only celebrating its inconsistencies, stressing that there was no justifiable reason why Adenuga should be removed from the board when it was not the one that appointed him.


He observed that the apex bank was only wasting its time in its war against sole proprietorship in the banking sector, adding that Companies and Allied Matters Act (CAMA) was superior in this regard.


"CBN is only contradicting itself. They knew they had goofed. How can you take away properties from the owners? I mean those who have toiled day and night to build the institutions?” he queried.


Lending credence to this, coordinator, Shareholders Renaissance Association (SRA), Ambassador Olufemi Timothy, stated that the re-tracing of steps by the CBN was in order.


Timothy emphasised that there was no law against one-man banking in the country, urging the apex bank to strengthen its regulatory roles.


The decision of the CBN to return ETB to Adenuga, according to reports, was hinged on the fact that no criminal activity, such as insider lending and money laundering, was found against him during the special audit of banks operating in the country.


The CBN is also said to have consulted widely with the CBN Committee of Governors, comprising the governor and his deputies, as well as the Nigeria Deposit Insurance Corporation (NDIC), over the development, adding that unlike other troubled banks in which serious infractions bordering on criminal activities were discovered, ETB was said to have been affected by the last CBN action mainly because of the ownership structure.


It will be recalled that the CBN had, on October 2, sacked the managing director of the bank, Mr. Ike Oraekwuotu, and removed Adenuga as a non-executive director after a special audit of the remaining 14 banks.

If ETB is ok, what was the point in sacking the MD (ORAEKWUOTU)?