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Shareholders Seek Return Of Nationalized Banks by Adesiji77: 4:07pm On May 18, 2015
Ahead of the sale of the last nationalised bank (Keystone Bank Limited ) by Assets Management Corporation of Nigeria (AMCON), fresh facts seem to have emerged as shareholders have called on the incoming government led by President-elect, General Mohammadu Buhari to revisit the issue of the three nationalized banks, stating that the exercise was not transparent and characterized by corruption.

Meanwhile, AMCON’s spokesperson, Mr. Kayode Lambo confided in Financial Vanguard that the sale of Keystone Bank will commence this year, 2015 contrary to earlier 2014 speculated. He said: “The corporation will start the process of selling the bank with the appointment of financial advisers and will be fast-tracked. So it is likely that the sale may be completed between October and November 2015.” Recall that AMCON has so far sold Mainstreet Bank and Enterprise Bank to Skye Bank and Heritage Bank respectively.

In an exclusive chat with Financial Vanguard, the Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie, said, “We thank God that Keystone Bank, whose case is still in court over nationalization has not been sold yet. We have more facts on this issue and we want proper investigation on it by the new government. Also, investigation had shown that one of the reasons why retail investors had shown apathy to the Nigerian stock market since the meltdown in 2009 was because of the issue of nationalized banks.

The retail investors suffered the loss of their investment in these banks. If the new government wants increased participation of local investors in the market, then it should investigate the issue of the nationalized banks.” Continuing, he said, “If the issue is investigated properly, the government will discover discrepancies in the handling of the issue and it will be proper if the banks are returned to their former shareholders or in the worst situation, compensation be paid to the shareholders.

This step, if carried out would enhance confidence and engender the participation of local investors in the capital market. So we are using this opportunity to call on the incoming government to revisit the nationalisation of the three banks whose licences were revoked by the Central Bank of Nigeria, CBN and acquired by Nigeria Deposit Insurance Corporation, NDIC and then finally taken over by AMCON .

He contended that due process was not followed as the exercise was characterized by corruption, adding, “The nationalization of these banks amounted to unlawful and compulsory acquisition of our investment and is therefore unconstitutional, arbitrary, null and void. We have fresh facts at our disposal and we would like the new government to investigate this issue. Thank God, Keystone Bank has not yet been sold.”
Speaking as well on the issue of nationalized banks, Chairman of Nigeria Shareholders Solidarity Association, NSSA, Chief Timothy Adesiyan said,

“Nationalisation of these banks is a big fraud and need to be revisited for true justice to prevail. According to him “Shareholders are not happy with the CBN when it forcefully nationalized three banks belonging to us. The question is, are the three banks doing well since they were taken over by AMCON? The answer is no. Then, what is the essence of nationalizing them? We the shareholders of these banks were shortchanged and we would like the issue to be revisited and investigated because we like justice to prevail. When two elephants are fighting it is the grass that suffers.”

Speaking on the issue, the National Co-ordinator, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu said, “The establishment of AMCON was intended, ab initio, to re-rationalise banks and rape shareholders, the idea was an “empty boast geared towards shortchanging shareholders, to enable them give the banks to their friends.

The revocation of the operating licences of the banks was an illegal policy that had clearly showcased Nigeria as an unfriendly polity for sustainable business.” In his comment, National Co-ordinator, Proactive Shareholders Association of Nigeria, PROSAN, Mr. Taiwo Oderinde said, “It is a welcome development if the issue of the three nationalised banks is revisited.” The shareholders have been crying and calling on the government to compensate the shareholders who were not carried along when it nationalised the banks. We cannot be responsible for the inactiveness of others.

In his response, Mr. Adebayo Adeleke, General Secretary, Independent Shareholders Association of Nigeria (ISAN) said “The previous CBN governor should be investigated by the Economic and Financial Crimes Commission (EFCC). He should be asked to account for how the three banks were nationalised without following due process. The former CBN Governor, Mallam Lamido Sanusi never followed due process to nationalize these banks.

It will be recalled that some shareholders had taken AMCON to court and the case has yet to be finalized. At the last ruling, a Federal High Court in Lagos refused to dismiss a suit filed by some shareholders of the defunct Bank PHB Plc (now Keystone Bank) against the CBN, AMCON and three others over the forced acquisition of their shares.

While ruling on a preliminary objections filed by the defendants to challenge the jurisdiction of the court, Justice Mohammed Yunusa held that as shareholders, the plaintiffs have a say in the bank and that no arm of government can take away a citizen’s right to acquire or hold property; therefore, there can be no compulsory acquisition of the shares. The plaintiffs are challenging the alleged illegal transfer of their shares to Keystone Bank without compensation.

They are also demanding the sum of N38.6 billion from the defendants being “fair compensation” to them for the value of their investment in Bank PHB Plc. The shareholders are further asking the court for an order setting aside the alleged unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB, and are seeking N20 billion as damages for the loss of value of their investments in Bank PHB.

The defendants in the suit are CBN, Keystone Bank, Attorney-General of the Federation and Nigeria Deposit Insurance Corporation (NDIC). The plaintiffs claimed that NDIC on August 5, 2011, wrote Bank PHB’s Managing Director informing him that the bank’s assets and liabilities have been transferred to Keystone Bank without any form of adequate compensation to the shareholders.

The plaintiffs are praying the court to declare that the action amounted to unlawful compulsory acquisition of their investment and is therefore unconstitutional, arbitrary, null and void. But the defendants in their preliminary objections to the suit, urged the court to strike it out for lack of jurisdiction. According to their lawyer, Kola Awodein, the shareholders did not bring the action properly before the court thereby robbing the court of the jurisdiction to hear it.
- See more at: http://www.vanguardngr.com/2015/05/shareholders-seek-return-of-nationalized-banks/#sthash.y2ndCEQ0.dpuf

lalasticlala
Re: Shareholders Seek Return Of Nationalized Banks by johnnee: 4:20pm On May 18, 2015
Ok.




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Re: Shareholders Seek Return Of Nationalized Banks by tola9ja: 4:20pm On May 18, 2015
okay
Re: Shareholders Seek Return Of Nationalized Banks by generaluthman: 4:20pm On May 18, 2015
Booked
Re: Shareholders Seek Return Of Nationalized Banks by tola9ja: 4:21pm On May 18, 2015
[size=18pt]$20billion[/size]
Re: Shareholders Seek Return Of Nationalized Banks by niceguy7(m): 4:22pm On May 18, 2015
If I hear.... undecided
Re: Shareholders Seek Return Of Nationalized Banks by seunlayi(m): 4:22pm On May 18, 2015
I am just confused with all this Naija Banks................ Backwardness is their hidden watchword
Re: Shareholders Seek Return Of Nationalized Banks by asumo12: 4:23pm On May 18, 2015

1 Like

Re: Shareholders Seek Return Of Nationalized Banks by dotna(m): 4:23pm On May 18, 2015
This is responsible
Re: Shareholders Seek Return Of Nationalized Banks by baybeeboi: 4:23pm On May 18, 2015
to Hell with Banks.
Re: Shareholders Seek Return Of Nationalized Banks by Nobody: 4:23pm On May 18, 2015
Booked
Re: Shareholders Seek Return Of Nationalized Banks by ayobamog(m): 4:26pm On May 18, 2015
cool
Re: Shareholders Seek Return Of Nationalized Banks by otokx(m): 4:27pm On May 18, 2015
Last time he checked, the courts are open.

1 Like

Re: Shareholders Seek Return Of Nationalized Banks by mbulela: 4:29pm On May 18, 2015
All these shareholders association are one man show of jobless hustlers.
Re: Shareholders Seek Return Of Nationalized Banks by Inception(m): 4:30pm On May 18, 2015
grin

1 Like

Re: Shareholders Seek Return Of Nationalized Banks by Gaskia: 4:32pm On May 18, 2015
The shareholders have a case but because the key charater in the whole saga....Sanusi Lamido is a key element to Buhari's 'victory' and a fellow Fulani, it may not work for political reasons. Otherwise I see no sanity in selling assets with pending litigations.
Re: Shareholders Seek Return Of Nationalized Banks by chieyine(m): 4:39pm On May 18, 2015
Why should a Nigerian property be nationalized in the same Nigeria. Is there no legal right called Right to acquire legal properties anywhere in Nigeria. There properties were nationalized without any compensation. It is just like telling the road side mechanic; you dont have customers so hand over your business to the government without any compensation then Go and Die
Re: Shareholders Seek Return Of Nationalized Banks by Creamish(f): 4:44pm On May 18, 2015
I hope the shareholders win this case.. Its been downhill since the nationalization. There was actually no form of compensation. Sad.
Re: Shareholders Seek Return Of Nationalized Banks by Mishydoo(m): 5:04pm On May 18, 2015
...Boring Bank Threads,....!
Re: Shareholders Seek Return Of Nationalized Banks by carpenter(m): 5:22pm On May 18, 2015
I think the issue should be re-visited. However, if the banks were mismanaged as supposed...investors get nothing, and the people that mismanaged or stole money will go to jail. That is the risk we all take when we invest in a business...nobody pays you back for making a bad investment choice.
Re: Shareholders Seek Return Of Nationalized Banks by emabe: 5:30pm On May 18, 2015
Adesiji77:

- See more at: http://www.vanguardngr.com/2015/05/shareholders-seek-return-of-nationalized-banks/#sthash.y2ndCEQ0.dpuf

lalasticlala

bad idea from APC. Tinubu wants Nigeria to repeat the hard leasons the USA just learnt which by the way help the last global melt down. If this is what APC is bringing to the table then they dont have any interest of the poor Nigerian on the street to heart.
Re: Shareholders Seek Return Of Nationalized Banks by darqly(m): 6:34pm On May 18, 2015
Progressive Shareholders Association of Nigeria, PSAN
Nigeria Shareholders Solidarity Association, NSSA
Independent Shareholders Association of Nigeria (ISAN)

Jobless associations with selfish interests. How of many of them knew the actual state of their so-called banks before they went ahead and invested? How of many them read the prospectus or bother to find out how the banks were being operated?
At least Oceanic bank was on the verge of systemic failure owing to being run like a kiosk.
All shareholders are interested in is ROI, but in Nigeria they don't even bother to find out if the companies they invested in are being run ethically or are keeping their heads above water angry angry
Re: Shareholders Seek Return Of Nationalized Banks by AreaFada2: 7:17pm On May 18, 2015
darqly:




Jobless associations with selfish interests. How of many of them knew the actual state of their so-called banks before they went ahead and invested? How of many them read the prospectus or bother to find out how the banks were being operated?
At least Oceanic bank was on the verge of systemic failure owing to being run like a kiosk.
All shareholders are interested in is ROI, but in Nigeria they don't even bother to find out if the companies they invested in are being run ethically or are keeping their heads above water angry angry

Well, it's the regulators' job to ensure that only viable banks operate.

Shareholders don't have to be economists or financial experts.

Moreover, how many average investors can spot a book cooked by crafty banks?
Re: Shareholders Seek Return Of Nationalized Banks by Boss13: 8:05pm On May 18, 2015
chieyine:
Why should a Nigerian property be nationalized in the same Nigeria. Is there no legal right called Right to acquire legal properties anywhere in Nigeria. There properties were nationalized without any compensation. It is just like telling the road side mechanic; you dont have customers so hand over your business to the government without any compensation then Go and Die

I thought I was the only confused person here. I know Godwin Okezie and I cannot believe he made statement like that. Nationalization of banks, where these banks internationally owned? I believe he meant stripping these banks of their public limited liability status.
Re: Shareholders Seek Return Of Nationalized Banks by Boss13: 8:07pm On May 18, 2015
darqly:




Jobless associations with selfish interests. How of many of them knew the actual state of their so-called banks before they went ahead and invested? How of many them read the prospectus or bother to find out how the banks were being operated?
At least Oceanic bank was on the verge of systemic failure owing to being run like a kiosk.
All shareholders are interested in is ROI, but in Nigeria they don't even bother to find out if the companies they invested in are being run ethically or are keeping their heads above water angry angry

I can tell you for free, these shareholders are not interested in the performance of companies but are more interested in struggling for handouts during annual general meetings. Many of them will come with all their children claiming proxies. How can you, the shareholder come to an AGM with a proxy again. You need to see the fight because of sweets and exercise book
Re: Shareholders Seek Return Of Nationalized Banks by fairheven: 10:14pm On May 18, 2015
SANUSI commited a big sacrileges by not giving the shareholders the opportunity to recapitalize the banks an it clearly his nepotist inclination towards a section of the country
Re: Shareholders Seek Return Of Nationalized Banks by dbest01: 12:53am On May 19, 2015
For what?
Re: Shareholders Seek Return Of Nationalized Banks by cbravo2: 7:57am On May 17, 2017

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