₦airaland Forum

Adigbans:
well,
all i can say is NIGERIANS WAKE UP, TAKE A LOOK AT THE BIG PICTURE!!
okay chase debtors, get the money nice, but couldnt he have give these directors a warning and time to get this so called debts?is the only reason for this take over? yes, i said TAKE OVER, because that is what it is!!

we the wise nigerians know "their" plans, after a while,quote me on this, the "puppet acting M.D.s will get up and tell us that they "couldnt salvage" the banks and make d money ( billions injected into the banks, as if they were needed; these banks were doing well without the monry) back, then the so called 'INVESTORS" and sanusi will then tell us the "INVESTORS" want ownership instead and then we will know the real identity of these unknown "INVESTORS".

nigerians, WAKE UP AND SMELL THE COFFEE!!

Please check the facts before posting irrelevancies. Do you know the level of exposure of said banks? The only reason they were looking healthy was because they were doctoring their books.
So if you caught someone mismanaging funds, you would rather we let them go back to mismanging said funds, in the hope that they will sin no more?

4 of the five banks were on the border of insolvency (would become insolvent in due time), while the 5th was technically insolvent (with a CAR of 1.01%).

Please read the CBN address and stop spreading misinformation http://cenbank.org/OUT/SPEECHES/2009/GOVADD-14-8-09.PDF

becoomrich:
This is a shame.  This is a scam. This is a scam.

I do not believe the story. I believe they are been set up by the govt. It is not possible to borrow your nanny  $100 million  = $100, 000,000(N14 b) . It is not possible in Nigeria. We are talking of $100 million dollar(14 billion). I would say do not get con by this.

There are victim of a set up.

Firstly, the lady use to be a nanny several years ago (to Oboden Ibru, who was former director of the Bank), but is now a close associate of the family.
Secondly, it is common practice to use such people as proxies to obtain facilities. The name of a blood relation, particularly one with same name will easily raise an alarm.

Jarus:
I hope I'm chanced to sit down and write it this weekend. I was actually considering giving it title like DELE MOMODU: ABUSE OF COLUMNISM or DELE MOMODU: A COLUMNIST OR A PRAISE-SINGER? but later settled for that topic because those sound insultive.

Suggestions of the top of my head

1. Dele Momodu: Journalism in Psycophancy

2. Songs of Praise - The abuse of a column

3. Ovations - The Dele Momodu Columns

naijaking1:
Nobody is holding brief for any corrupt CEOs, but they must be given due process, whether you like it or not.

and what is the due process that is lacking?

Is it pay back time? I beg, people money are on the line in many of these banks.

Nobody said it was pay back time. You raised the point of the deputy governors that were sacked by Sanusi as if it should be an issue of concern. I only pointed out that they are not the first (and likely) wont be the last to lose their jobs. Hence no need to try make a mountain of a mole hill.

So-called injection of 400billion into 5 banks worth more than 1 trillion hardly justifies as an excuse to nationalize the banks. Sure the shareholders still own the banks, but that's to the extent that the new board will not hopelessly dilute their share strenght.

The CBN provided funds to shore up their capital base. No shares have been bought and no nationalization process has been initiated. Again, wait for evidence before spreading doom and gloom.

At least we agree on one thing, wait and see.

We differ on approach, as I do not approve of your approach of crying 'wolf' when there is none.

chic2pimp:
CHAMPIONS LEAGUE FINALS IN THE BERNABEU REAL MADRID VS ARSENAL WITH THE GAYBOYS TRASHING THE MADRIDSTAS 3-0

If you dream of Arsenal in the CL finals, you should wake up and apologize

naijaking1:
This thread is about Sanusi, so please don't confuse the issue. The culpability or otherwise of the sacked CEOs are already before the courts.

Are you not questioning his objectivity? and if said CEOs are indeed guilty, where then is the lack of objecvtivity?

Just like Sanusi, these bank CEOs have a discretion on management issues. To disagree with them about their style is one thing, but to criminalize their style simply because you disagree is quite another. Bye the way, Sanusi's tendency to squash the opposing view is evident in the manner he fired the 2 deputy CBN governors who opposed his unorthodox style. Somebody ought to teach Sanusi that there's some degree of democracy in the boards of banks and parastatals.

Doctoring accounts is not 'discretion on management issues'.
Any organizational head is justified to relieve of his position any subordinate that is deem not doing enough to fulfill his duties. I doubt you raised an eyebrow when Soludo sacked Wahir Mshelia.

You have forgotten that Sanusi did not have time to consult the shareholders in this case. Infact, he announced replacement of the CEOs without any reference to the people who have money in the bank. He didn't only replace CEOs, he even dissolved the board of directors.

The CBN has appointed interim CEO/MDs along with injection of funds, which I believe is fair enough and fully within its capacity as the apex bank. He also did not dissolve the entire board, but only removed executive directors. The shareholders still own the bank and have the right to appoint executives once the interim period is over.

With time Sanusi's long term goal would become apperent no matter how much he want to confuse and obsfucate. It's no secret that like many other northerners, he wants more control of the banks. At the moment, he was quoted as looking to have Asians buy into 2 of the dissolved banks. Whether it's a backyard approach to handing control of these banks to northerners, time will tell. The truth is that more southerners put their money in these banks, so why the surprise that they control most of them?

Why don't you wait till then, instead of making unsubstantiated claims as to a planned takeover by a phantom Northern oligarchy

sartorius:
ok 100 , 120 fine.


what i have against the list has to do with the matter of  completeness. The CBN tells us that five out of the first ten audited  banks passed their audit (Diamond, First Bank, Guaranty Trust, UBA,  Sterling ). There is skepticism by some about this especially since  the new CBN governor previously worked in two of the  banks that  passed , i.e. First Bank and UBA.  Perhaps such skepticism is far fetched. Still, I am certain they also have some bad debtors like the five failing  banks who have had the names of their bad debtors published. In my  opinion, the names of the bad debtors of ALL the banks should be  published irrespective of whether the bank passes the CBN audit or not

Every bank has loans that have gone bad. The key point is the willingness to write off the loans on the account of the bank, which will adversely affect its profit. For example, several years ago, FBN wrote off the ₦4Bn debt of a former chairman of the bank and took a substantial hit in their profits.
Hiding the bad loans, as if they were performing ones, requires you doctoring the books. Cooking the book is the problem, and not the loans being bad, but then if you have a large amount of bad loans, you would have to cook the books or face going under.

OYB_MEND:
There is nothing these banks are doing that FBN and Unity bank are not doing

and if what we are talking about is pruning them out, then the banks should be closed and all employeees sent home, not just firing the head. FBN and UNity should also suffer the same faith.

Sanusi is simply executing an agenda already detailed in the March 23 Vanguard.

SHAME ON SANUSI for pursuing such a myopic agenda.

So have Unity Bank and FBN been found guilty of same crime and not been persecuted? are you privy to specific information of at least one bad debt in the billions at either of said banks that supports your allegation or it was simply something you saw in a dream?
You are yet to answer the question of what would be gained by waiting till all the banks are audited before taking action against them?

OYB_MEND:
and congratulations to him for destroying the banking sector and destroying confidence in the system just within 2 months of taking office

he is a real hatchet man and he is delivering on his job description given to him by his masters.

destroying the banking sector and confidence in the system by removing executives that have been found guilty of cooking their books?
What should he have done? given them a pat on the back and ask them to carry on?

pcicero:
Pray what the investigation is meant to achieve.
-To ask if indeed her bank granted the loans?
-If she complied with all laid down rules and procedures before the loans were administered?
-If the loans have indeed gone bad?
-Why she was on the run before surrendering now?

I thought CBN had already said all these and prosecuted her by the removal.
Methinks that the EFCC is just playing to the gallery. Yes, after all those bashing by the US sec of state- Hilary Clinton during her recent visit.
Thank God, EFCC is finally alive. crap

The investigation is to determine if the malpractice acts were out of genuine incompetence, or in pursuit of a personal gain. In the case of the latter, it becomes an issue of embezzlement and abuse of office, criminal offences.

OYB_MEND:
Unfortunately we are not talking about armed robbers here we are talking about the nation's financial institutions and the dangers the activity of sanusi portends for the larger economy

and if there is any armed robber in this whole process, the Sanusi led CBN is looking more like it.

and what are the dangers it portends? what do u hope to achieve by waiting till all the banks are audited?
A corporate executive guilty of malpractices is no different from a corrupt politician or an armed robber. They are all making money illegally and should be pruned off society accordingly.

OYB_MEND:
to debate Binna be like to debate dinning room table.

CBN dey work on more than 2 months old record

mistyped names of debtors

then no get list of performing and non performing loans right

some of the figures no correct.

Binna chill ok!!! Nigeria belong to we all. Why CBN no fit wait untill them conclude thorough audit and compilation of report?

wait to achieve what. Those that are already found guilty should be dealt with immediately, instead of wasting time and letting them  bring undue pressure on the process. The CBN has started with the most likely culprits and the result of the audit has shown so.
So if we had 24 suspected armed robber gangs, you would rather we wait to investigate all the gangs (let them keep operating), before prosecuting the 5 that we have already found evidence against?

pcicero:
No sir. There were errors in the figures as well. Are you saying someone who committed errors in the names could not make the same errors in figures as well? Your premise is faulty as well. So is it only about Ali Dangote? Femi Otedola, Jimoh Ibrahim and even Arumemi-johnson have all faulted the whole stuff.

Could you please state the errors in the figures along with the correction.
So because people indicted by the list have claimed innocence, makes the position of said people the truth.
Have the banks involved come out to say the figures published were false?

Beaf:
So whats the difference with an instituition making allegations, does that make them right?

As to the rest of your post, the CBN is expected to be 100% professional and beyond such basic errors.

Even if you or I made such fundamental errors in a matter of this magnitude, any reasonable person would question our ability to handle the situation correctly, in fact all reasonable people would doubt our conclusions.

Again what were the errors and what is their effect. The bottom line is that said banks have huge bad debts in several billions and as such the executives should be relieved of the posts.
You have definitely gotten your priorities wrong.

adigun101:
While I would say I approve of his motives, I definitely do not approve of his actions. I have got a few questions to this regard.
1. Sanusi's objective as he claims are by all accounts needed and commendable.
2. The manner he has gone about it to me have by all accounts been[b] reckless, haphazard and destructive.[/b]

Please expantiaite on what makes his action haphazard and destructive

3. Where there other less damaging ways to deal with this issue apart from how he's gone about it ?

less damaging to who? the populace who have already had their money mismanaged?

4. What were the true situation of the banks , were there insolvent ?

It is not a question of insolvency but poor corporate governance and malpractices

5. Are the actions of the bank MDs and their deptors criminal ? So much so to call in the EFCC and call for prosecution ?

Their action would be criminal if there are proven personal/ulterior motives, and could simply have been due to incompetency on their part. Whichever is for thenEFCC to investigate and deal with accordingly. The CBN has done the right thing to remove them from office. The rest is up to the legal system

6. Has he got enough evidence to prove allegations of fraud against the bank MDs and their debtors as this is the only way they can and should ever be prosecuted as criminals ?

They are being investigated and not prosecuted. I doubt anyone has been formally charged to court over the matter. Again, this is a problem of the EFCC and not CBN. The CBN can only aid by providing requested documentations and records.

7. Has he considered the Long term damages to Nigerian Economy and stock market and confidence in the banking sector, including investor confidence ?

Long term damage from removing executives that have acted inappropriately? This is the kind of action that helps our credibility by showing that we are ready to deal effectively with executives found guilty of malpractices, and not the shameful handling of the haliburton saga.

8. Did banks like RBS, Nothern Rock, Citigroup, Bear Sterns, Merryl linch, lehman brothers,AIG etc have their executives charged or thrown in jail.

What is happening to Madoff? what happened to the Enron executives and Andersen staffs? People found guilty of corporate malpractice are usually charged and prosecuted.

9. Will anyone agree with me that most of the bailouts done by western economies where done after approval from the legislature, with little or no details/disclosures about the liabilities   and toxic debts of these banks. Was there ever a name and shame campaign ?

and so we should now handle Nigerians like Americans abi? How many top Nigerian have resigned from office simply to protect their name?

10. None of these banks claimed insolvency, would it have killed sanusi to give them time and backing in recovering their non performing loans.

The banks are free to recover the loans, but said executive who caused the problem in the first place should not be given the opportunity to worsen matters.

11. A loan is a contract between a lender and borrower. The terms of this contract are varied and complex. Including conditions for defaulting. How does the CBN arrive at a not performing loan ?

In simple terms, a loan is non-performing if the terms of said agreement are not being met.

Well after what a certain analyst at described as a "Bull in a China Shop" action by Sanusi. I guess we haven't got any choice but to sit back and watch events unfold.
I predict that is going to be long. Suits and counter suits  against the CBN, EFCC and banks. An impasse that would last and would stunt the growth of our financial sector and possibly spread to other areas of our corporate sector. We will not notice it now, but just imagine you are a foreign investor possed with investing in Nigeria.

Well I predicted this. Sanusi is a man with strong personal qualities/ character/ethics. He has shown this for the world to see by going head on to enforce ethics in the banking sector.
Sanusi is also a man with relative little/insufficient experience and exposure as he is apparently clueless with little knowledge on the legal and macro-economic issues that lurk behind.
I am only warning but only time would tell.

The analogy is wrong. Sanusi is not a bull, and the financial sector is definitely far from a China shop.

mr ok:
sanusi is a big fool. there is something political about this whole mess. he should have completed the screening of the 24 banks before coming out with his plan. right now other banks will be covering their track.
by the way, why did'nt this stuff happen when soludu was there? with time, we will know the brain behind this and i know pdp will be involved

What is to be achieved by waiting to audit all 24 banks? to expect remaining banks to be covering their tracks is to allege their guilt without prove. Being a key player in the sector before his appointment, is it not expected that Sanusi knows the likely culprits, and has only started with the worst offenders?. The books for the basis of the audit are periodically submitted to the CBN, and there is little anyone can do to cover their tracks (than to possibly recover the said debts).

If the stuff did not happen when Soludo was there, (given that there is yet no evidence to contradict the figures published) there are two possible explanation: Soludo failed to catch it, or caught it and was complicit in hiding it.

Sanusi's execution might not have been perfect (though I dont see what is wrong with it), we should not waste time pursuing irrelevances and lose focus of the big picture. We complain that Nigeria is in a bad state, and when someone tries to clean up a part of it, instead of supporting him, Nigerians are busy criticizing him.

Beaf:
I am happy that you have poted something that says individuals have threatened to go to sue the CBN over the figures published.
If you can't see what is wrong with the above, there is little I can add.

so someone threatening to go to court means he is in the right?
Has said people gone to court?
Have the court ruled in their favor?
I ask again that you substantiate your claims that the figures published have been shown to be false.

Have you bothered to think on how CBN came up with the list of debtors?
Would there primary source not be the financial books of said banks?
If the latter is true, is it not plausible the errors in the CBN list are reflective of errors in the bank books?

I am not sure you have gone through the list, else I wonder what you have to say when

1. Two entities (ASCOT Offshore Nig. Ltd  and Rockson Engineering) owe Intercontinental Bank ₦82Bn of a total  of ₦211Bn in bad debts
2. Falcon Securities Ltd owes Afribank  ₦29.5Bn and 5 other entities also owe ₦10Bn+ debts each (totaling about  ₦75Bn) to result in about ₦105Bn of the total  ₦142Bn in bad debts.
3. Transnational Corp. Plc owes Union Bank  ₦31Bn of a total of ₦73.6Bn in bad debts.
4.  Notore Chemical Ind. Ltd (₦32Bn), Rahamaniya Global Resources Ltd. (₦28.6Bn), Falcon Securities Ltd (₦22Bn) which also owes Afribank a similar amount, Spark-West Steel Ind (₦18BN), Mid-Western Oil & Gas Coy Plc (₦24Bn), Global Fleet Ind. Ltd (₦15Bn), Circular Global Int. (₦13BN), and IMAD Oil &Gas Ltd ( ₦10Bn), account for about ₦162 of the ₦278Bn in Oceanic bad debts

and yet you are primarily concerned with if Ali was mistaken for Aliko
I think you have your priorities misplaced.

UEFA Champions League play-off
Non-Champions Path: Arsenal FC (ENG), Olympique Lyonnais (FRA), VfB Stuttgart (GER), ACF Fiorentina (ITA), Club Atlético de Madrid (SPA), RSC Anderlecht (BEL), Panathinaikos FC (GRE), Sporting Clube de Portugal (POR), Celtic FC (SCO), FC Timişoara (ROU)
Champions Path: FC Salzburg (AUT), Maccabi Haifa FC (ISR), FC BATE Borisov (BLR), FC Sheriff (MDA), Debreceni VSC (HUN), PFC Levski Sofia (BUL), FC Zürich (SUI), Olympiacos CFP (GRE), APOEL FC (CYP), FC København (DEN)


[table]
[tr][td][/td][td][center]Agg.[/center][/td][td][/td][td][center]1st Leg[/center][/td][td][center]2nd Leg[/center][/td][/tr]
[tr][td] [/td][td] [center]8-2[/center] [/td][td] Anderlecht [/td][td]5-1[/td] [td]3-1[/td] [/tr]
[tr][td][/td][td] [center]1-5[/center] [/td][td]Arsenal[/td][td]0-2[/td] [td]1-3[/td] [/tr]
[tr][td][/td][td] [center]0-2[/center] [/td][td]VfB Stuttgart[/td][td]0-2[/td] [td]0-0[/td] [/tr]
[tr][td][/td][td] [center]v[/center] [/td][td]Fiorentina[/td][td]2-2[/td] [td]1-1[/td] [/tr]
[tr][td][/td][td] [center]2-5[/center] [/td][td]Athletico Madrid[/td][td]2-3[/td] [td]0-2[/td] [/tr]
[tr][td][/td][td] [center]3-0[/center] [/td][td]FC Sheriff[/td][td]2-0[/td] [td]1-0[/td] [/tr]
[tr][td][/td][td] [center]1-5[/center] [/td][td]Maccabi Haifa FC[/td][td]1-2[/td] [td]0-3[/td] [/tr]
[tr][td][/td][td] [center]1-5[/center] [/td][td]FC Zürich[/td][td]0-3[/td] [td]1-2[/td] [/tr]
[tr][td][/td][td] [center]2-3[/center] [/td][td]APOEL FC[/td][td]1-0[/td] [td]1-3[/td] [/tr]
[tr][td][/td][td] [center]1-4[/center] [/td][td]Debreceni VSC[/td][td]1-2[/td][td]0-2[/td] [/tr]
[/table]

Final Scores (26/08/2009)

Olympiacos CFP 1 - 0 Sheriff Tiraspol
Mitroglou 82’

APOEL Nicosia 3 - 1 FC København
Kosowski 2’ Michael 19’(pen.), 41’          N'Doye 22’

Arsenal 3 - 1 Celtic
Eduardo 28’ (pen.) Eboue 53’ Arshavin 74’          Donati 90’

Stuttgart 0 - 0 FCU Politehnica Timisoara


Fiorentina 1 - 1 Sporting
Jovetic 54’          Moutinho 35’

eyonigger:
biina, mark my word today. I will note down this thread number, we are beating you guys in the first leg. Just like I quoted sauron the dark lord prior to the Barca VS Man-u match, I asked him what his response wud be after Barca whoop their asses, he kept on making mouth, after the game dude came up with bitter/useless excuses.

So if may ask u now, after Barca whoop you guys asses come November, wat wud u say?Congratulate us or being a sauron replica?

If you win fair and square, I will congratulate you. I am not a sore loser. But if we win. . . . . . . . . . .

The Central bank of Nigeria has noted claims by some individuals on the published list of debtors/defaulters that the figures posted against them are not correct and threatened to go to court. The bank has also noted some typographical errors regarding the titles of some government officials and some companies and wish to comment as follows:
1.  The general public and all concerned should note that the list published is as at 31st May, 2009 and if any of the defaulters/debtors have made any repayments after that date, they should sort it out with the relevant bank.
2.  The title “Accountant General” under Intercontinental Bank Plc list, should read “Accountant General of Zamfara State” while the name “Delta State Government” under the Oceanic Bank list, should read “Delta Steel Company” The Central Bank of Nigeria regrets any inconvenience caused as a result of the typographical errors mentioned. Meanwhile, list of other debtors/defaulters is being compiled and will be published on an on-going basis.

Head Corporate Affairs,                           
Central Bank of Nigeria 
19th  August, 2009

[url]http://cenbank.org/OUT/PUBLICATIONS/PRESSRELEASE/GOV/2009/PRESS%20RELEASE%20190809.PDF[/url]

@Beaf
So please tell us what has been shown to be false

Beaf:
. . .A few typos and numerical errors . Only in Nigeria sha!
What more can I say? The question has been answered.

Here is the recent list from CBN as at August 18, 2009 http://cenbank.org/Out/publications/pressRelease/GOV/2009/ADVERTORIAL_18082009.pdf
You can compare it to the original list and tell us what has changed in the facts of the case.
Like I said, please substantiate your claims, and not just make baseless statements to pursue your position.

Beaf:
The way things have gone, they do not have to prove their innocence to the CBN. What are courts for? They should have been charged ever since if any crimes were committed; not being chased by EFCC and other qwango's, but after all this time, wind and noise, not one of them has been charged. Shocking.

You have failed to answer the question asked, which was for you to substantiate your claim that 'the figures the "proof" was based on have turned out to be false?'

Beaf:
CBN is not the government, it is a government instrument; lets straighten that first.
How can we believe that bank books were fixed when the figures the "proof" was based on have turned out to be false? I'm here scratching my head!

Please clarify what you mean by the 'proof' is false.
Have the bank executives come out with 'proof' of their innocence, or the corrected figures posted by the CBN not still serve as proof?
Or a few typos and numerical errors should be sufficient to sweep the failings under the carpet?
Please provide/point out the false figures that show that 'the figures the "proof" was based on have turned out to be false'

Player that dive should be booked retroactively.
The other team risks a possible red card, it is only fair that same penalty be applied to the diver.

That was a disgraceful dive by eduardo.
Arsenal fans should never criticize other players for diving. They have a Hollywood star of their own.

@Mikeansy
Thanks

The question is 'is there any evidence of a takeover or just speculation?'
I am not advocating that bank ownership to revolve with the CBN governorship, but rather that there is no permanency in the action if it is confirmed true. Thus, to use it as an excuse to let wrongdoers remain in office is poor judgment.

I find it amusing (and a quite disappointing), that not one of the anti-Sanusi poster has proclaimed the innocence of the sacked executives. Rather they are focused on speculating as to the ulterior motives of the action.
If said executives are indeed guilty of malpractices should they not be sacked?

Sanusi (and anyone that has been a top executive in the banking sector for a substantial time), has a good idea of who the main culprits are of banking malpractices. The audit only serves to confirm suspicion and thus would have started from the most suspicious banks. To start otherwise, or waste time in taking action, is to lose his advantage and possibly the opportunity.

For those that argue of a northern buyout, Sanusi sacked the executive and not the shareholders, and so I dont see what is stopping same shareholders from appointing new executives. It only becomes an opportunity for a takeover, if the shareholders cannot put forward credible executives, and thus decide to pull their funds from the bank on the grounds that their interests cannot be protected. In which case, it is good riddance to bad rubbish.

If indeed Sanusi is simply protecting Northern interests, can same not then be said of his predecessor protecting southern interest (afterall no one was brought to book when Soludo was in office)? If Sanusi weeds out the southern bad eggs and ignores the northern ones, do we not only need to wait for a southern CBN governor to cull the remaining Northern weeds?

I am all for kicking out any bad eggs in the sector, and would rather we focus on suggesting policies that would ensure that the decay is not repeated, than speculate as to the ulterior motives of Sanusi or some phantom northern oligarchy.

All that diplomacy no go save una for November. Make una just sam pam dey wait, e go soon land.

Hughes needs to sign one more central defender to add depth.

I expect celtic to try and get an early goal to bring them back into the tie. On failing to get the goal, they will just sit back and play for honor.

eyonigger:
Not against the almighty Barca'z 4-3-3 formation. Barca is an exclusion.

Don't be in haste. You will get your deserved trashing in due time by November.