usbcable:

to make it clearer, our letters has the following details:


DISENGAGEMENT
We regret to inform you that your services will no longer be required with immediate effect.

In accordance with the terms of your employment, you will be paid one month basic salary in lieu of notice in addition to other benefits which you are entitled to (if any).You will however be advised of the position of your terminal account as soon as this has been computed.

Management has also approved that you should be paid three months basic salary as ex-gratia.

Please hand over all the Bank's assets in your possesion to Human resources department.

We thanks you for the services you have rendered since you joined the Bank, and wish you success in your future endeavours.

Yours Faithfully,
[/b][b]Intercontinental Banks Plc[/b]

[b]Habila Amos
Head,Human Resources

so what else do you want from the management?

the above letter was now followed with a second letter with the heading;

RE-DISESNGAGEMENT LETTER

However, the contents of this sequel(as I prefer to call it) varies from individual to individual.

But, the puzzling part was that no matter the number of years of service you put in we were all said to be only entitled to four months basic(not full ooooo) salary.

Secondly, our health insurance cards were collected a lists sent to the hospitals containing our names
Thirdly, those of us with share loans were refused our share certificates(either paid up or not)

About a month or two before the disengagement letters were served, we used to have access to our terminal benefits on the system.suddenly it was deleted. and no one both within or laid off can say this is what he is entitled to in case he leaves the banks services


my people many many things have happened this last few weeks that makes me feel this CBN management officials of Intercontinental bank are really not sincere with all what Sanusi is preaching


Good  Corporate Governance is surely lacking even with them at the helm of affairs

If you want maoredetails I surely can give.First hand info cos I am affected


And as per what we want the banks management should comply with what they signed together with ASSBIFI, concerning redundant staff

While I sympathize with you on the loss of your job (its an harrowing experience), I still don't get what the management has done wrong.
If I understand your posts correctly
- You are getting 4 months basic salary as severance pay. That the computation is based on your basic salary is a function of the company's compensation scheme.
- Your health benefits were terminated. It would be unfair to expect the company to continue providing medical benefits to terminated employees, particularly when some might seize the opportunity and abuse it.One could make argument for a grace period for those that are on long term management like pre-natal care.
- Share certificates being withheld as collateral would be justifiable in cases of those still owing the company. For those that have reconciled their loans and obligations, it would be illegal to do so as the shares certificate is the sole property of the individual.
- The denied access to terminal benefits seems a cheeky move, but was only effective because the members of staff didnt have personal copies (which they are entitled to).
- As to the ASSBIFI, I didnt know that Intercontinental was unionized. If not, then ASSBIFI has no locus standing

You might desire a more favorable treatment, but all these are far from malpractice on the part of the management. You can not expect the management to willing spend more than they need to.
The bank is not the Red Cross, and you were not a volunteer worker; It is strictly business.

-the 4 months basic salary is not the banks policy,nor compliant with labour rules.(thats why they removed it from the system)
-the nationa health insurance scheme provides six months cover for redundant staff of any member company(do they want us to die in case of sickness)
-as for the shares, if i have a loan for 10,000 units of the banks shares and money amounting to 8,000 had been deducted from my salary.a certificate for the 8,000 units should be given to me.since the contract binding us together had been severed by them.
-all banks, Intercontinental Bank inclusive are members of ASSBIFI.


what is being demanded is what ought to be given and not som special treatment.
the bank knows this cause there is a signed agreement to that effect.Moreover, the labour we are not contract staff.HABA.
this is corporate terrorism on their part

soludo or what they call him is a shit to me because of one to one with dollar. and he called him self gov.

usbcable:

-the 4 months basic salary is not the banks policy,nor compliant with labour rules.(thats why they removed it from the system)

The labour laws (see my earlier post) does not mandate any payment to terminated staff beyond in lieu of notice. Without evidence, you cannot categorically say that the provisions of the banks policy is any better. The common value I have seen (even in the US and UK) is the 3 months basic salary, which if you add 1 month in lieu of notice makes 4 months.
If there is evidence that what they are paying violates either the labour laws or the company's policy, then you have every right to take legal action agaisnt the bank.

-the national health insurance scheme provides six months cover for redundant staff of any member company(do they want us to die in case of sickness)

Are you saying the scheme covers you automatically or that you expect the company to continue paying for your coverage even though you are no longer contributing your side of the bargain? Again in ability to provide documented evidence in support of your claims willmake it baseless.

-as for the shares, if i have a loan for 10,000 units of the banks shares and money amounting to 8,000 had been deducted from my salary.a certificate for the 8,000 units should be given to me.since the contract binding us together had been severed by them.

That argument is faulty. You have bought the 10,000 units already and have just not paid up on the loan you took. You cannot now decide to buy just 8000 units. The shares certificate is the collateral on your loan, and the bank is justified to hold on to your entire collateral as long as any part of the loan is unpaid

-all banks, Intercontinental Bank inclusive are members of ASSBIFI.

From ASSBIFI site http://www.assbifing.net/aboutus.htm
After the banking sector reforms of 2005, a number of banks took deliberate decision not to allow union or, to de-unionise their environments. The banks that are still stubbornly resisting the rights of their employees to unionise are: First City Monument Bank Plc, Access Bank Plc, Diamond Bank Plc, Standard Chartered Bank, Guaranty Trust Bank, Fidelity Bank Plc, and Equitorial Trust Bank Plc, Nigeria International Bank Limited, Spring Bank Plc, and Intercontinental Bank.

Do you have a president/secretary for your ASSBIFI unit?

what is being demanded is what ought to be given and not som special treatment.
the bank knows this cause there is a signed agreement to that effect.Moreover, the labour we are not contract staff.HABA.

Do you have evidence in support of these entitlements? It is what is on  paper that will determine if what you are demanding is or not special treatment

this is corporate terrorism on their part

Nah. its just cold hearted business 

cold hearted business truly.

I dont see the point in attacking Sanusi.
It is his central bank now.
I am glad that the FG has asked him to present his plans so that everyone knows his strategy and the path he wants to steer the banking industry.
I wasn't comfortable with the way he came out with a new plan everyday with seemingly no end.
We need some stability in the banking sector so that we know what is working and what is not.
I do not want a situation where people are still blaming the previous administration of the CBN for the banking woes.
Let us see his strategy work.
For now it is not working but I guess it is too early to judge.

Onlyy in naija!!
you compare someone that is there for 6months with someone that was there for 4years*
people are here asking what sanusi has achieved since he got there?? like duhhh its only some few months
When soludo got there no one even bothered asking for his achievement within a year na crime make person
come from north? abi na crime make person no go normal western universities?

read some people saying sanusi should have done all this quietly?!?! how do you remove 5-6 CEO quietly in Nigeria
the thing is Nigerians only follow instructions when there is a cane in hand! that's what these corporate agberos understand!!
compare OBJ you must obey government to yaraduas 'rule of law' government- you get things done quicker with one and the other na court you go sleep
everyday! this is what we need now let everything be done now and fast! instead of all this paddy paddy style

Obviously, the difference is clear. Soludo have got class, Sanusi doesn't. Soludo's policies are intellectually deep and may not be even clearly understood by the lay-man (so it is difficult to understand the policy papers if you are not an economist), Sanusi comes across as a man that understands it the way i (being a lay-man) does. I feel very comfortable if CBN under Soludo is featuring at global space than i do under Sanusi. The fact is that you may not agree with Soludo on his approach but dare not ask for a policy argument with him lest you disgrace your self ( he seem to have all the graphs, charts, projections, roll back plan, exit strategy, comprehensive plan and hence one feel more comfortable trusting him with complex job like CBN). Sanusi appears like a light weight and seem to act before he thinks, he also seem to act to impress somebody and i can't personally see intellectual depth in his works.

If CBN is my organization and i have the choice of the two as candidates for MD, i will actually choose Soludo over Sanusi and will wonder about my human resources system that put both of them in the same class.

MY thoughts,

I am no longer interested in all this technical brouhaha.
Soludos consolidation brought about a vibrant banking sector never seen before in Nigerias history.
For the first time even Sanusi attested to the fact on BBC that the banking sector overtook the Federal government as the primary financier to the private sector.
This was as a result I think of the consolidation exercise.
While many would say that this was cosmetic and that the banking sector had huge underlying problems.

I am still waiting to see the effects of Sanusi's reforms by way of activity in the wider economy.
For now, at least from the surface it has been disastrous so far.
While I must add that it is too soon to judge, but this must be the desired end effects or else Sanusis reforms will be seen as one of the darkest episodes in Nigerias economic history.
Somewhat like Babangidas SAP programme.

The comparison of Soludo to Sanusi should be clear to anyone that has read Covey's '7 Habits of highly effective people' (and anyone that hasnt should try to) and its discussion of P/PC balance.

A relevant excerpt:

Organizational PC
One of the immensely valuable aspects of any correct principle is that it is valid and applicable in a wide variety of circumstances. Throughout this book, I would like to share with you some of the ways in which these principles apply to organizations, including families, as well as to individuals. When people fail to respect the P/PC Balance in their use of physical assets in organizations, they decrease organizational effectiveness and often leave others with dying geese.

For example, a person in charge of a physical asset, such as a machine, may be eager to make a good impression on his superiors. Perhaps the company is in a rapid growth stage and promotions are coming fast. So he produces at optimum levels -- no downtime, no maintenance. He runs the machine day and night. The production is phenomenal, costs are down, and profits skyrocket. Within a short time, he's promoted. Golden eggs.

But suppose you are his successor on the job. You inherit a very sick goose, a machine that, by this time, is rusted and starts to break down. You have to invest heavily in downtime and maintenance. Costs skyrocket; profits nose-dive. And who gets blamed for the loss of golden eggs? You do. Your predecessor liquidated the asset, but the accounting system only reported unit production, costs, and profit.

soludo's restructuring lacked the very best and most important element - institutionalization.
what soludo did in our banking industry is exactly what ribadu and el rufai did in efcc and fct respectively.
when arrangements are made without continuetion plans, such arrangements cld be termed short term plans.
look at our telecommunication industry, it gets better and better on daily basis because there was room enough for continuation.
soludo, el rufai and ribadu where on temporary business designed to promote third term agenda and since the third term failed, the 3 sectors began to have crack.
the strongness of our banks under soludo was based on corrupt politicians abilities to pump in the ill gotten wealths in our banks who protect them for selfish reasons coupled with the forceful involvements of our young female graduates into officials bank prostitutes in their bids to meet up with the high financial demands.
soludo had no strong foundation for whatsoever artificial arrangements he made.
he worked for an evil force that promised him anambra govt house and the gud news is that he failed.

biina:

The comparison of Soludo to Sanusi should be clear to anyone that has read Covey's '7 Habits of highly effective people' (and anyone that hasnt should try to) and its discussion of P/PC balance.

A relevant excerpt:

Organizational PC
One of the immensely valuable aspects of any correct principle is that it is valid and applicable in a wide variety of circumstances. Throughout this book, I would like to share with you some of the ways in which these principles apply to organizations, including families, as well as to individuals. When people fail to respect the P/PC Balance in their use of physical assets in organizations, they decrease organizational effectiveness and often leave others with dying geese.

For example, a person in charge of a physical asset, such as a machine, may be eager to make a good impression on his superiors. Perhaps the company is in a rapid growth stage and promotions are coming fast. So he produces at optimum levels -- no downtime, no maintenance. He runs the machine day and night. The production is phenomenal, costs are down, and profits skyrocket. Within a short time, he's promoted. Golden eggs.

But suppose you are his successor on the job. You inherit a very sick goose, a machine that, by this time, is rusted and starts to break down. You have to invest heavily in downtime and maintenance. Costs skyrocket; profits nose-dive. And who gets blamed for the loss of golden eggs? You do. Your predecessor liquidated the asset, but the accounting system only reported unit production, costs, and profit.

I dont understand the reason behing your post.
As fas as I am concerned Soludo did not inherit exactly a very vibrant banking sector either.
But he forged a direction which apparently seemed to have been working until Sanusi came and told us that this was not really the case.

With comments like this I forsee a situation were Sanusi and his apologists will continue to excuse themselves using the past CBN administration which to me is just lame

Sanusi once said on BBC that is target is to create a banking sector with operated withing International standards on ethical banking.
That I should add is a fair target but in my opinion should't be the end target.
It should't be done at the expense of growth of the banking sector.

For now all I see is an over- regulating CBN.
A CBN wich has gone into the business of micro-managing banks.
Mediating foreign investors in a group of banks.
Setting the business Objectives of a group of banks.
Limited the independence of the banking sector and has managed to allienate tactically a lot the most experienced hands in the banking Industry.
The above move in my opinion is unprecedented.
But I guess he knows what he is doing.
Even the slight change of power in Aso Rock has asked for clarification or blueprint of his course of action.

Well Sanusi should start talking targets like Soludo did.
Soludo even had the audersity to tell south African bankers that nigeria will be the biggest sub-saharan banking sector by 2020.
He was talking things like baking sector funding sizes and the bankis involvement in capital projects.

He should set benchmarks.
Hes been about a year now but while I acknowledge this is a relatively short time, he must be acheiving some deliverables by now !

@Roadstar
1.Soludo inherited a healthy banking sector. He said so in his own words (in his first speech).
2. Sanusi, based on the evidence he provided (and I am yet to see anyone including the sacked executives dispute this) inherited a failing sector.
3. If the above statements are true, then the sector was ruined under Soludo's watch, and that was the hidden price we paid for the apparent growth i.e.like you said 'seemed to have been working'.
4 But now people are making Sanusi out to be the bad guy, when he simply doing what needs to be done.

But then this is not about excusing Sanusi on the basis of actions/inactions by Soludo. Its simply a case of there is a mess in the sector, and Sanusi is cleaning it up.It is after a substantial part of the mess has been cleaned up, and we have a truer picture of where things stand, can we then make the right plans and move forward.

biina:

@Roadstar
1.Soludo inherited a healthy banking sector. He said so in his own words (in his first speech).

With all due respect, I would like to differ with you on that.
Regarding Soludo's first speech, I would like a source reference or something.
The message I got from Soludo on assumption of office is that he inherited a fragile banking sector with little capital resources, mainly one man businesses that had no focus or direction and hence could not make any impression on the wider economy.

2. Sanusi, based on the evidence he provided (and I am yet to see anyone including the sacked executives dispute this) inherited a failing sector.

Asides Sanusi himself who was MD of first bank, I dont know of any bank MD who alleged that the banking sector in Nigeria was a failing sector as at when Sanusi took over. I heard a comments for and against but this were just people stating their opinions for or against.

3. If the above statements are true, then the sector was ruined under Soludo's watch, and that was the hidden price we paid for the apparent growth i.e.like you said 'seemed to have been working'.

No one can say they are true. As far as im concerned, we have two Sanusis the un-vocal Sanusi at the helm of First bank and the now too vocal one at the helm of CBN.
This now begs the question. Sanusi is a man known to have foraged into the political arena and done critical write-ups , He must have at least seen the rot in the banking sector so why did he not speak up then.

4 But now people are making Sanusi out to be the bad guy, when he simply doing what needs to be done.

People are not just making sanusi the bad guy. Most ordinary people see the mass retrenchments
The credit squeeze and the fall in the baking functions generally, so why should you blame them ?

But then this is not about excusing Sanusi on the basis of actions/inactions by Soludo. Its simply a case of there is a mess in the sector, and Sanusi is cleaning it up.It is after a substantial part of the mess has been cleaned up, and we have a truer picture of where things stand, can we then make the right plans and move forward.

It not about cleaning any mess in the banking sector. It is about the manner and approach. The assessment and impact of his positive actions. This reminds me of those that call for military coups any time there is a political crisis. Not all solutions solve problems, some create more problems.
There hasn't been enough transparency from Sanusi in my own opinion. He has acted independently and has made little or no attempt to carry the people along.
There are genuine questions being asked by ordinary folks.
Like how much of the banks exposures were as a result of Governments non-payment of contractors and petroleum importers.
What transpired with transcorp. They had un-performing loans but the FG was partly responsible.
Even the yara'dua government has found it necessary on more that one occassion to step in and excuse a certain group of the borrowers.
What is his blue print for the banking sector reforms.
From the initial days of Soludo, no one will deny that he made attempts to detail a blueprint he was going to see out as CBN governor, From Consolidation, Microfinance banking, Nigerian mint, Forex policies and Naira redenomination etc.
He prided himself on how many of those he managed to acheive in office.
It was amazing how he laid down this blueprint and even tried to see them off !

Soludo to me is not entirely a success story but no one can deny his impact !

Another thing and I stand to be corrected is that Sanusi bank auditing carried out by sanusi were not Independent.
By that I mean third party.
Or dont you think they should've at least been an independent commitee included in the auditors.

RoadStar:

With all due respect, I would like to differ with you on that.
Regarding Soludo's first speech, I would like a source reference or something.
The message I got from Soludo on assumption of office is that he inherited a fragile banking sector with little capital resources, mainly one man businesses that had no focus or direction and hence could not make any impression on the wider economy.

From soludo's first speech http://www.cenbank.org/OUT/SPEECHES/2004/GOVADD-6JUL.PDF

12.  The latest assessment shows that while  the overall health of the Nigerian banking system could be described as generally satisfactory, the state of some banks is less cheering. Specifically, as at end-March,  2004, the CBN’s ratings of all the banks, classified 62 as sound/satisfactory, 14 as marginal and 11 as unsound, while 2 of the banks did not render any returns during the period.  The weaknesses of some of the ailing banks are manifested by their overdrawn positions with the CBN, high incidence of non-performing loans, capital deficiencies, weak management and poor corporate governance. These shortcomings have, in recent years, led to the revocation of the licenses of two banks and the suspension of three others  from clearing house activities, prior to the commencement of the new settlement system.

13.  A further analysis of the returns of the marginal and unsound banks reveals that they account for 19.2 percent of total assets of the banking system, 17.2 percent of total deposit liabilities while the industry non performing assets account for 19.5 percent.  Although these ratios, except that for deposits, were below the trigger points for declaring the system as distressed, they are nevertheless of major supervisory concern.  

14.  The fundamental problems of the banks, particularly those classified as unsound, have been identified to include: persistent illiquidity, poor assets quality and unprofitable operations.

For clarity, we can summarize the major problems of many Nigerian banks as follows:  
a)  weak corporate governance, evidenced by high turnover in the Board and management staff, inaccurate reporting and non-compliance with regulatory requirements, falling ethics and de-marketing of other banks in the industry;
b)  late or non-publication of annual accounts that obviates the impact of market discipline in ensuring banking soundness;
c)  gross insider abuses, resulting in huge non-performing insider related credits;  
d)  insolvency, as evidenced by negative capital adequacy ratios and shareholders’ funds that had been completely eroded by operating losses;
e)  weak capital base, even for those banks that have met the minimum capital requirement, which currently stands at N1.0 billion or US$7.53 million for existing banks and N2.0 billion or US$15.06 million for new banks, and compared with the RM2.0 billion or US$526.4 million in Malaysia.
f)  Over-dependency on public sector deposits, and neglect of small and medium class savers.
Soludo skipped the first four and went after the last two. The move was premature IMO.

Asides Sanusi himself who was MD of first bank, I dont know of any bank MD who alleged that the banking sector in Nigeria was a failing sector as at when Sanusi took over. I heard a comments for and against but this were just people stating their opinions for or against.

Sanusi provided figures to back up his positions. http://www.chairmanking.com/why-bank-ceos-fired-lamido-sanusi-20090815/#more-2702
Those figures have not yet been disputed.

As to the need of an independent audit, that is a joke. The CBN is the regulatory body of the sector and to second guess its fairness is to take away its authority and make the sector lawless. That aside, the figures provided by the CBN were from the banks themselves and not new. It was same figures that made Soludo create the EDW, a move that simply swept the problem under the carpet, evidenced by the continued borrowing without repayment by the 5 banks in question.

No one can say they are true. As far as im concerned, we have two Sanusis the un-vocal Sanusi at the helm of First bank and the now too vocal one at the helm of CBN.
This now begs the question. Sanusi is a man known to have foraged into the political arena and done critical write-ups , He must have at least seen the rot in the banking sector so why did he not speak up then.

( Please see above). They are true until proven otherwise.
As FBN MD Sanusi has no business commenting on the business of his competitors as he is not suppose to be privy to such details and could be sued for try to bring disrepute on those banks for the gain of FBN. As CBN governor, its a different matter.

People are not just making sanusi the bad guy. Most ordinary people see the mass retrenchments
The credit squeeze and the fall in the baking functions generally, so why should you blame them ?

The bulk of the retrenchment has been coming from the distressed banks who have had to down size to survive. The bulk of the downturn is from speculation, based on doom and gloom spread by some with ulterior motives and some just misguided.

It not about cleaning any mess in the banking sector. It is about the manner and approach. The assessment and impact of his positive actions. This reminds me of those that call for military coups any time there is a political crisis. Not all solutions solve problems, some create more problems.

The question then is what was the better approach e.g. what should he have done with executives that were doctoring their account books- invite them to dinner?

There hasn't been enough transparency from Sanusi in my own opinion. He has acted independently and has made little or no attempt to carry the people along.
There are genuine questions being asked by ordinary folks.

What should he have done - seek public approval before taking actions, so that those that would be affected can take counter measures? Enforcement of supervisory infractions should not be a thing of dialogue.

Like how much of the banks exposures were as a result of Governments non-payment of contractors and petroleum importers.
What transpired with transcorp. They had un-performing loans but the FG was partly responsible.
Even the yara'dua government has found it necessary on more that one occassion to step in and excuse a certain group of the borrowers.

This is a common misconception. The bank executives were fired not just because they had under performing loans, but that they doctored their account to hide it. They were declaring profits when in truth they were running at a loss. To meet their obligations, they were continuously borrowing money without repayment from other banks in the EDW (which is guaranteed by the CBN). In short they were taking the other banks and the CBN down with them
That the government fails to service its loan is a risk you take as they are no different than any other private entity. The CBN should not indulge any bank or any company by proxy, simply because the government has failed in its obligations to them. Those parties did not seek the approval of the CBN when engaging in business with the governemnt.

What is his blue print for the banking sector reforms.
From the initial days of Soludo, no one will deny that he made attempts to detail a blueprint he was going to see out as CBN governor, From Consolidation, Microfinance banking, Nigerian mint, Forex policies and Naira redenomination etc.
He prided himself on how many of those he managed to acheive in office.
It was amazing how he laid down this blueprint and even tried to see them off !

Soludo to me is not entirely a success story but no one can deny his impact !

The first stage is primarily the enforcement of existing regulations. It after that that we can talk of moves for the future. It will be stupid to make plans without know the true state of things.

Soludo was an academician, who made plans that were often impracticable, which was not surprising given that he never had a true picture of the sector.

12. The latest assessment shows that while the overall health of the Nigerian banking system could be described as generally satisfactory, the state of some banks is less cheering. Specifically, as at end-March, 2004, the CBN’s ratings of all the banks, classified 62 as sound/satisfactory, 14 as marginal and 11 as unsound, while 2 of the banks did not render any returns during the period. The weaknesses of some of the ailing banks are manifested by [color=#990000]their overdrawn positions with the CBN, high incidence of non-performing loans, capital deficiencies, weak management and poor corporate governance. These shortcomings have, in recent years, led to the revocation of the licenses of two banks and the suspension of three others from clearing house activities, prior to the commencement of the new settlement system. [/color]
13. A further analysis of the returns of the marginal and unsound banks reveals that they account for 19.2 percent of total assets of the banking system, 17.2 percent of total deposit liabilities while the industry non performing assets account for 19.5 percent. Although these ratios, except that for deposits, were below the trigger points for declaring the system as distressed, they are nevertheless of major supervisory concern.

14. The fundamental problems of the banks, particularly those classified as unsound, have been identified to include: persistent illiquidity, poor assets quality and unprofitable operations.

For clarity, we can summarize the major problems of many Nigerian banks as follows:
a) weak corporate governance, evidenced by high turnover in the Board and management staff, inaccurate reporting and non-compliance with regulatory requirements, falling ethics and de-marketing of other banks in the industry;
b) late or non-publication of annual accounts that obviates the impact of market discipline in ensuring banking soundness;
c) gross insider abuses, resulting in huge non-performing insider related credits;
d) insolvency, as evidenced by negative capital adequacy ratios and shareholders’ funds that had been completely eroded by operating losses;

God bles you Binna!!

And several years later we are still grappling with the same issue only on a bigger scale!!

Soludo was a visionary leader,he came and saw and he conquered,laid the foundation upon which Sanusi build his little ideas,he made the banking system strong,he made the foundation by which banks is stringer today,