Daily Independent (Lagos)
David Agba
9 July 2009
Abuja — Legal bottlenecks prevent the payment of over N188 billion belonging to the depositors of failed banks by the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Corporation (NDIC), lawmakers lamented on Thursday.
Nkechi Nwaogu, the Chairman of the Senate Committee on Banking, Currency, Insurance and other Financial Institutions, said a Bill is in the works that would create Special Courts to try those who contribute to the collapse of banks and thereby deny depositors their money.
Nwaogu, who spoke to journalists in Abuja at a seminar organised by the Foundation for Democracy in Africa, decried a situation where depositors wait endlessly to get their money while those who caused the collapse of the banks show off in opulence.
"What the Senate is saying is that he who is bestowed with responsibility should not abuse it," she maintained. "If you notice the figure in question, the people we are talking of are the former Directors, Managing Directors, and Chairmen of boards of Directors of those banks that failed.
"We are not talking about people who borrowed money from the banks in the cause of their doing business. No! And we are saying that it is not fair for these Directors, including insiders, who borrowed so much money and at the end of the day these banks died with customers' money.
"We are running around asking over 60 per cent of the population who do not have bank accounts for them to have bank accounts, and ask them not to put their money under their pillow cases."
She wondered if it would be nice when customers save up in banks which later go under and are not paid their deposits.
The Senate is saying "we must begin to be our brothers' keepers. We must sanitise," Nwaogu stressed.
"We must brand from within, brand from ourselves. And some of these people or board members are now real big men with new portfolios. Is it right? As we speak, there are still over N188 billion depositors' money not paid and people are dying in penury.
"Somebody who is owed N100 million you are telling him that your bank is in court. He did not take the Central Bank to court. He is not a party to the court case. So, why should you unilaterally, illegally join him?
"For goodness sake, I am saying pay these people because our Committee, the Senate and the National Assembly in general, are inundated with petitions from these depositors.
"We are preaching to have a high deposit base or deposit culture. How can people begin to develop a better deposit culture when previous depositors have not been properly treated? That is just it."
The Senate had on Tuesday named Nigerians who abused their positions in banks, took loans worth N53.3 billion, and refused to pay them back, which made the banks to go under.
They include former Kwara State Governor, Mohammed Lafiagi (N1,156,776.57 - unlimited personal guarantee); Sanusi Ado Bayero (N45,003, 963.93); former Gulf Bank Managing Director, Babajide Rogers (N11,874, 216.56); Chrome Services and Related Companies Chairman, Emeka Offor (N3,850,016,620 - personal guarantee of Offor and 100,000 units of ordinary shares of Environmental Remediation Holding Corporation, USA), and another N3,850,016,620 loan without guarantee.
Victor Odili (N41,103,498.56 - fixed and floating debenture on the assets of the company); N2,628, 979.05; N10,856,129.75.
Owner of liquidated All States Trust Bank now Federal Airports Authority of Nigeria (FAAN) Chairman, Ebitimi Banigo, Nta Henshaw, and others (N48,551,995,304.83); former Progressive Peoples Alliance (PPA) Governorship candidate, Remi Bakare (N1,093,247, 535.40); Mike Ajegbo (N210,291,896.21): C. M. Ibeto (N643,340,680.92); and former Information Minister, Dapo Sarumi (N3,847,743.90).
Oluwalogbon Motors Chairman, S.O Bakare (N544,585,269.86 and N21,311,398.59); former City Express Bank Chairman, Samuel Adedoyin; former City Express Bank Chief Executive Officer, Sola Adeoti; former Minister of State for Health, Funke Adedoyin (N5,131,275,864.01); and Angela Onyeador (N30,755,363.13 - legal mortgage).
Nwaogu noted that 50 banks failed because of the huge debts that were never paid, including 36 which crashed before consolidation in 2005, and 14 after consolidation.
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