Abdul-Rahman Abubakar and Turaki A. Hassan
9 July 2009
In order to follow up on the revelation of insider debtors that ruined 11 failed banks in the country, the Senate Committee on Banking and Finance yesterday summoned Central Bank of Nigeria (CBN) governor Sanusi Lamido Sanusi, Managing Director of Nigeria Deposit Insurance Corporation (NDIC) Ganiyu Ogunleye and directors of the failed banks to appear before it on Monday.
Committee chairman Senator Nkechi Justina Nwogu (PDP, Abia) said the meeting is to provide additional insight into all factors and acts of commission on the side of some directors of the banks leading to their failure and liquidation.
She said the committee will unravel the roles played by some of the directors in granting N53.3 billion loans to proxies, a major factor that incapacitated their banks from being able to raise the recapitalisation fund of N25 billion in 2005.
The NDIC in a report sent to the committee said only N4 billion of the funds siphoned by insider debtors from the coffers of the failed banks had so far been recovered.
Senator Nwogu Tuesday named the beneficiaries of the loans as supplied by NDIC after senators insisted that she revealed the names irrespective of the personalities involved.
The failed banks are African Express Bank, Assurance Bank, Eagle Bank, All States Trust Bank, Fortune Bank, Trade Bank , Hallmark Bank, Gulf Bank, Metropolitan Bank, Lead Bank, Liberty Bank, Societe Generale Bank, Fortune International Bank and Triumph Bank.
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