Mass sacking looms at Oceanic Bank

By Sola Adebayo, Warri, Published: Tuesday, 15 Dec 2009







Indications emerged on Monday that the management of Oceanic International Bank Plc was set to lay-off about 1,400 workers in a cost cutting exercise desfined to return the bank to the path of profitability.

It was learnt that the figure represents 40 per cent of the bank’s 3,500 employees.

Findings by our correspondent further showed that the management of the bank, which declared a loss of N286bn on Friday had also approved 30 per cent salary reduction.

Already, 250 of the affected workers had received their sack letters in an exercise aimed at pruning down the bank’s workforce and cutting down operational costs.

A reliable source in the company told our correspondent on Monday that the list of the remaining 1,150 workers slated for early disengagement from the bank was ready. The source said their sack letters would soon be released.

It was gathered that the first casualties in the phased exercise were shown the way out of the bank for sundry offences, especially that their personal accounts were in the red.

Consequently fear has gripped the employees of the bank in the wake of the latest development.

Oceanic Bank is one of the troubled banks rescued by the Central Bank of Nigeria, which examined the books of the 24 banks in the country. The erstwhile management of the bank, headed by Mrs. Cecelia Ibru, was sacked on August 14 along with four other bank chiefs for granting huge non-performing loans, which affected the wellbeing of the financial institutions.

The Managing Director of the bank, Mr. John Aboh, had at a news conference in Lagos recently, said the pruning exercise was inevitable in view of the state of the bank. Aboh, was, however, silent on the details and magnitude of the exercise.

Aboh also said that some unviable branches of the bank had been shut down as part of measures to salvage the ailing financial institutions.

However, investigation by our correspondent showed that the management had compiled and approved a list of 1,400 workers to be eased out of the bank. A top official of the bank told our correspondent on Monday that the Aboh-led management had authorised the list for implementation.

The source further stated that the sack of about 250 officials of the bank last week was a prelude to the full implementation of the decision of the management.

The source stated, “I can tell you authoritatively that 250 workers have already been sacked for all manners of offences, including that their personal accounts were in debt. The management just started with that figure because the target is 40 per cent of the bank’s workforce of 3,500. To be specific, no fewer than 1,400 employees of the bank, which represents 40 per cent of the workforce, would be sacked at the end of the exercise.

“The management has also agreed to 30 per cent salary reduction.

“The management is very serious and committed to the exercise. Already, the workers in the administration department of the bank have been scattered and transferred to different parts of the country, especially the northern axis.

“Confusion and apprehension reign in Oceanic Bank because of the decision of the management. We just pray that the managing director will rescind the decision because of the acrimony that is likely to result from the implementation,” added the source who craved anonymity.

When contacted on the telephone, Aboh, who reiterated that sacking of workers was inevitable, however, said that it was premature to speculate on its details.

He added that it was not true that 40 per cent of the workforce would be affected.

Aboh, who confirmed that some workers were sacked last week, said the figure was less than 250. But he declined to specify the exact figure.

He said, “We are not done with the process yet because we are observing all procedures. We are looking at all files to enable us draw reasonable conclusion on the way forward. I told journalists at a press conference recently about the exercise (sacking of workers), but we are not ready for it yet. Wait until we do it,” Aboh added.

http://www.punchontheweb.com/Articl.aspx?theartic=Art200912152394570

I see danger, wahala dey

lord! have mercy,

Very unfair.

Another bank Sneezing?

This is getting very serious o

Cecilia Ibru sues CBN over removal

The former Managing Director of Oceanic Bank, Mrs. Cecilia Ibru, has filed a suit at the Federal High Court in Lagos challenging her removal as the Managing Director of the bank.

The Central Bank of Nigeria (CBN), had on the fourtheenth of August, removed Mrs. Ibru as managing director of Oceanic bank alleging mismanagement of depositor's funds and abuse of office.

She was sacked along with chief executives of three other banks on that day Mrs. Ibru, in the suit filed by her counsel, Mr. Taiwo Osipitan (SAN), contended that the CBN acted hastily and in bad faith by removing her as the chief executive of the bank.

She said that she was never given any opportunity to defend herself before the sack.

Mrs. Ibru wants the court to determine whether the CBN was not bound to observe the rules of natural justice and fair hearing by hearing her side of the story before sacking her.

The apex bank in its preliminary objection filed by its Counsel, Mr. Kola Awodine (SAN), contended that Mrs. Ibru lacked the locus standi to institute the action.

so sad!

as P-SQUAURE wud say. . . . omo see danger, danger, wahala dey[sub][/sub]

another round of suffering and poverty wind sets to unleash itself. poor bankers. once on suit next time on rags

We believed deception in this country. Our leaders told us that the Global Recession will not affect Nigeria. is not affecting us now. The capital Market problem may not be resolved again.Wahala for the affected workers, what if they have anything to fall back on ?

it is terrible. but one question we hav'nt answered yet is, why do we always go to hide when things like these come up? how can they lay off such amount of workers and still exist? what we should be investigating is wether they are about to fold so that we warn our loved ones who have account with them. If we don't,before we know it, they will come up with cogent reason to fold and fold it is.

oh! lord plz have mercy on us all. The question is, where do we go from here?

[font=Lucida Sans Unicode][color=#006600]what the heck has malo sanusi done? this is saddening,

Dear Customers & Shareholders,
I am writing this letter to you as the Chief Executive Officer of Oceanic Bank International Plc at a time of unprecedented financial sector
crisis in Nigeria and the rest of the world and following the intervention of the Central Bank of Nigeria in your bank.
The year 2009 for your bank has been extraordinary and our unaudited financial statements for the nine months to September 30, 2009
reflect the need to come clean about the true and fair state of affairs of the bank. In coming clean, we have examined the extent to which
the bank's accounts both in 2009 and prior year have reflected the true position of our non-performing loans and the recognition of
interest thereon.


th In the unaudited accounts for the nine months to September 30 2009, we have booked provisions of =N=311.8billion in respect of bad
and doubtful loans and , in line with Prudential Guidelines , accounting standards and best accounting practice , we have not booked
income on such non-performing loans, resulting in a loss before tax of =N=398.3billion. We are now confident that all known losses as at



th September 30 2009 have been properly accounted for. We also believe we have addressed the twin problems of 'ever greening' the loan
book and bad loans that were not properly accounted for.
rd To the extent that most of the loans we have now classified as bad in the 3 Qtr 2009 unaudited accounts had already become delinquent
in 2008, but were not classified or accounted for as such in the 2008 audited accounts, we will in the coming months restate the 2008
accounts in order to correct these distortions. When this is done, it is expected that the Profit and Loss account for 2008 will show a
substantial loss vs. the profit after tax of =N=7.68billion currently shown, while the restated Profit and Loss account for nine months to
th September 30 2009 will show a correspondingly reduced loss. The restatement is not however expected to result in a change in the
th Shareholders Funds position as at 30 September 2009 except to the extent of tax related adjustments.
Once this is done, we will be able to put behind us all the unfortunate events of the recent past and focus on the future of our great bank.
Our bank has a great brand. We are proud of our loyal and dependable customer base, a successful retail business, a network of 440
branches strategically located across Nigeria, world class transaction banking and retail banking product engines, rich holdings of real
estate, to name a few of elements we must continue to be proud of.
It is widely expected that the financial sector crisis in and outside Nigeria will persist in 2010. As we prepare to brace the macroeconomic
and external difficulties ahead, we are optimistic about the future of Oceanic Bank and we are poised to implement fully the recovery
strategy.

Your bank is taking action to streamline its cost base so as to align expenditure with revenue. To enable us focus on stabilising the bank's
Nigerian and core banking operations, our investment program has been postponed almost entirely. Unfortunately, since many of these
actions concern our employees, personnel adjustments cannot be avoided.


As I look forward to 2010, I am confident I have the right staff in the right positions to weather the financial storm, which may get worse
before it gets better. The nature of the economy is one we have never before experienced; however, I believe we can endure and tackle the

challenges that lie ahead.
To be successful in 2010 and beyond, we must:
1. Remain focused on our customers
2. Be committed to the enthronement of strong corporate governance
3. Sustain the momentum of the last two months that has resulted in deposit growth, loan recovery and improvements in efficiency;
4. Carefully monitor credit quality and proactively work with customers to remedy delinquencies and mitigate further deterioration of
their loans;
5. Use capital wisely.
6. Continue to review and control expenses.


In closing, I would like to reaffirm our commitment to a conservative corporate philosophy and strong corporate governance. I believe your
bank can rise above this and can be profitable even during these very difficult times. In fact, these difficult times may bring new growth
opportunities to Oceanic Bank.

Over the next days and weeks, the management team will be following through with stakeholders on this landmark bridge from the past
into the future of your bank, premised on the right foundation.
The Un-audited Accounts as at September 30, 2009 will be published on our website during the week and hardcopies will be available to
customers and investors.

Thank you for your continued support and investment in Oceanic Bank.


John O. Aboh
MD/CEO

Personally, I think oceanic bank is heading for the Rocks. I don't see how a right thinking individual or organisation would risk its funds and investments in oceanic bank after a clear distress call like this one from its management. The management is not even talking about profit, its contemplating how to cut down losses running into Billions. After all said and done its the common peoplle who slaved their butts off that bear the brunt (employees).

Thank God i've pulled out all my funds and shut down my accounts, I enjoyed the service while it lasted.

Dear Customers & Shareholders,
I am writing this letter to you as the Chief Executive Officer of Oceanic Bank International Plc at a time of unprecedented financial sector
crisis in Nigeria and the rest of the world and following the intervention of the Central Bank of Nigeria in your bank.
The year 2009 for your bank has been extraordinary and our unaudited financial statements for the nine months to September 30, 2009
reflect the need to come clean about the true and fair state of affairs of the bank. In coming clean, we have examined the extent to which
the bank's accounts both in 2009 and prior year have reflected the true position of our non-performing loans and the recognition of
interest thereon.


th In the unaudited accounts for the nine months to September 30 2009, we have booked provisions of =N=311.8billion in respect of bad
and doubtful loans and , in line with Prudential Guidelines , accounting standards and best accounting practice , we have not booked
income on such non-performing loans, resulting in a loss before tax of =N=398.3billion. We are now confident that all known losses as at



th September 30 2009 have been properly accounted for. We also believe we have addressed the twin problems of 'ever greening' the loan
book and bad loans that were not properly accounted for.
rd To the extent that most of the loans we have now classified as bad in the 3 Qtr 2009 unaudited accounts had already become delinquent
in 2008, but were not classified or accounted for as such in the 2008 audited accounts, we will in the coming months restate the 2008
accounts in order to correct these distortions. When this is done, it is expected that the Profit and Loss account for 2008 will show a
substantial loss vs. the profit after tax of =N=7.68billion currently shown, while the restated Profit and Loss account for nine months to
th September 30 2009 will show a correspondingly reduced loss. The restatement is not however expected to result in a change in the
th Shareholders Funds position as at 30 September 2009 except to the extent of tax related adjustments.
Once this is done, we will be able to put behind us all the unfortunate events of the recent past and focus on the future of our great bank.
Our bank has a great brand. We are proud of our loyal and dependable customer base, a successful retail business, a network of 440
branches strategically located across Nigeria, world class transaction banking and retail banking product engines, rich holdings of real
estate, to name a few of elements we must continue to be proud of.
It is widely expected that the financial sector crisis in and outside Nigeria will persist in 2010. As we prepare to brace the macroeconomic
and external difficulties ahead, we are optimistic about the future of Oceanic Bank and we are poised to implement fully the recovery
strategy.

Your bank is taking action to streamline its cost base so as to align expenditure with revenue. To enable us focus on stabilising the bank's
Nigerian and core banking operations, our investment program has been postponed almost entirely. Unfortunately, since many of these
actions concern our employees, personnel adjustments cannot be avoided.


As I look forward to 2010, I am confident I have the right staff in the right positions to weather the financial storm, which may get worse
before it gets better. The nature of the economy is one we have never before experienced; however, I believe we can endure and tackle the

challenges that lie ahead.
To be successful in 2010 and beyond, we must:
1. Remain focused on our customers
2. Be committed to the enthronement of strong corporate governance
3. Sustain the momentum of the last two months that has resulted in deposit growth, loan recovery and improvements in efficiency;
4. Carefully monitor credit quality and proactively work with customers to remedy delinquencies and mitigate further deterioration of
their loans;
5. Use capital wisely.
6. Continue to review and control expenses.


In closing, I would like to reaffirm our commitment to a conservative corporate philosophy and strong corporate governance. I believe your
bank can rise above this and can be profitable even during these very difficult times. In fact, these difficult times may bring new growth
opportunities to Oceanic Bank.

Over the next days and weeks, the management team will be following through with stakeholders on this landmark bridge from the past
into the future of your bank, premised on the right foundation.
The Un-audited Accounts as at September 30, 2009 will be published on our website during the week and hardcopies will be available to
customers and investors.

Thank you for your continued support and investment in Oceanic Bank.


John O. Aboh
MD/CEO

Mirror Mirror on the wall, Please tell me what the future holds

God Bless Nigeria and the people in it.  (Amen)

staff paying for superiors mistakes.

At the inception of this problem, my mind told me it would continue for quite a while, so, i had to withdraw all my money in my account, and transfered it to GTB,

Now, GTB is also facing security problem,

Where else do i run to?

^^^ lol

GTay:

^^^ lol

Looks like you got something to tell me,

Are we going forward or backward in that country? The masse are crying of creating more job opportunities in all sectors and our financial sector is creating more unemployment into the labour market. Jst last few weeks IB sacked 1500 workers making it almost 3000 bankers sacked within the period of one month. We should expect the same to happen soon in the other 5 bailed banks. May God help us!!!

consequences of poor leadership which is pronounced in all biz sectors in the country.if the people do not rise up to fight this leadership problem then they should be ready to be jobless.how come it that a bank that declared billions of nair profit last year is now saying that they lost billions this year?simple some body(auditor) did not do his job.people its not late what ever you are doing do it well  because if alarm blow,

just like they great Bob Marley sang>>"Many more will have to suffer, many more will have to die, dont ask me why"
The Management messed up the bank, gave out under secured loans and now, the employees have to suffer the brunt, my bet is the shareholders will be the next set of pawns

^^^ at N1.69 yesterday, of what use is this to the shareholders now most of whom bought the shares at >> N20 including my humble self

Why? is it that they want to increase the number of jobless people?

[size=16pt]the truth is,these banks and everything abt them i.e staff and co have always been `false`.last yr,they posted billions as profit and they are now laying off their workers.they started by paying silly wages even though they hardly made profit.imagine when u have to spend money u dont have-pple`s money.as for the sacked staff,they shld look elsewhere.they shld have known that all that glitters isnt gold.i could have  been a victim if not that i listened to my dad who warned me dat the banks were just fronting.

debts           pre tax debt     
bankphb         439bn
union bank      223bn
finbank             94
springbnk          23bn

saw these on friday.almost all the banks are in huge debt.[/size]

Perilous time are here. If Oceanic can whether the storm, they'll come out strong.