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

[size=18pt]Chinese firms to take over troubled banks - As Shareholder group takes CBN to Court[/size]
Odidison Omankhanlen, Lagos - 13.09.2009

Problems over the sale of Nigeria’s five troubled banks will soon be over as some Chinese firms have indicated interests in buying over the banks. The latest development is not unconnected with the reception and enquiries that greeted the CBN team that’s attending the World Economic Forum in China.

A source, who refused to give details nor names of the Chinese investors, told Sunday Tribune that the CBN will give an update on the affairs in the troubled banks soon.

The CBN settled for China following poor response from UK investors at the recent London road show. However, CBN’s Head of Corporate Affairs, Mr. Mohammed Abdullahi, denied that the bank team went to China to auction the five banks, but rather to attend the Forum and meet with global industry players.

According to him, “the CBN Governor is presently participating at the World Economic Forum in China. The annual forum has nothing to do with the search for foreign investors in any of the Nigerian banks as being insinuated.”

He added that the concern of the CBN for now is to continue to ensure that Nigerian banks remain safe and sound, and that when the affected banks are due for recapitalization in future, the CBN will inform the public and the process be made open and transparent to group of investors.

He, however, reiterated CBN Governor’s statement that there is no law in Nigeria barring foreign investment in Nigerian banks, but insisted that the CBN will ensure that only investors interested in the development of the economy will be entertained.

Reacting, a foremost shareholder group in the country, Proactive Shareholders Association of Nigeria (PSAN), said it had concluded plans to take the apex bank to court.

In a letter signed by both Oderinde Taiwo and Kenneth Amanze, the National Coordinator and National Publicity Secretary respectively, addressed to its Lawyer, Barrister Nnodu Okeke & Co., the association hinged its grouses on the attempt by the CBN Governor to look for foreign investors for the five affected banks; the injection of fund to five affected banks, and the flurry of activities initiated by the CBN which has gone against the interest of the owners of the affected banks.

The association explained that the sudden action of the CBN has not reflected the principles of democracy and rule of law, which the present government professes, but that it infringes on the rights of the owners of these banks, adding that the action really undermine the relevance of other stakeholders, especially the shareholders, by unilaterally removing the five bank’s directors and their chief executives without giving them opportunities to defend themselves.

The story of self-inflicted injury to our banks by Sanusi continues.