The story of the five troubled banks turned into a roller coaster on Tuesday: with arrests, counter accusations, and litigation demanding N50 billion in damages all thrown into the mix, plus a threat by the Economic and Financial Crimes Commission (EFCC) to declare some bank executives wanted if they fail to show up for interrogation.
Eleven bank executives have been arrested, after the sack of five Managing Directors (MDs) last Friday by the Central Bank of Nigeria (CBN) Governor, Lamido Sanusi.
Those in the custody of the EFCC are Okey Nwosu (former FinBank MD), Barth Ebong (former Union Bank MD), Peter Ololo (MD Falcon Security, a subsidiary of FinBank), and Sebastian Adigwe (former Afribank MD), Felicia Sonubi (Oceanic Trustees MD), and Ayodele Thomas (Oceanic Securities MD).
Others are Abiodun Taiwo (International Capital Market MD), Abubakar Magaji (Intercontinental Trustees MD), Adegboye Adewoyi (Intercontinental Securities MD), Alex Duruike (First Inland Securities MD), and Emmanuel Okonji (First Inland Capital Market MD).
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EFCC Head of Media and Publicity, Femi Babafemi, confirmed the arrests, as well as the fact that other bank executives may be declared wanted if they fail to honour invitations.
Babafemi disclosed in Abuja that EFCC Chairman, Farida Waziri, has been informed that (some) bank officials have fled their homes.
"They have, however, been watch listed so it is difficult for them to leave the country," he added.
"(Waziri) is already considering the option of declaring them wanted if they fail to honour a simple invitation."
Another source said the EFCC has recovered N5 billion from N18 billion loan someone took from a bank (name withheld) that is on the next list of banks to face the wrath of the CBN.
Those on the list of the EFCC include Erastus Akingbola (former Intercontinental Bank MD), Cecilia Ibru (former Oceanic Bank MD), Ben Nwoji (Afribank Trustees MD), and Henry Onyemem (Union Trustees MD).
The source said they have been watch listed to make it difficult for them to escape out of Nigeria, saying some of them have tried to leave.
"We have been in touch with their homes and their offices so we know they have got the invitations," the source maintained.
It was learnt that the EFCC has been investigating banks since 2008 over money laundering.
The source added that the EFCC has charged a lot of bank debtors to court, citing the case sof Patrick Fernandez, the Indian who owes a bank N32 billion, and Funmi Ademosun, who owes Intercontinental N17 billion.
However, Akingbola has gone to court for a review of his sack as Intercontinental Bank MD.
Chief Judge of the Federal High Court, Abdullahi Mustapha, on Tuesday directed that the processes be serve on the respondents by substituted means, through advertisement in six national newspapers.
Akingbola wants the court, among others, to declare that his sack is in bad faith, contrary to due process, contrary to the process of law, discriminatory, ultra-vires, illegal, unconstitutional, null and void.
He requested N50 billion in damages.
To restore confidence in the five banks - Oceanic, Union, Afribank, Intercontinental, and Finbank - the government on Tuesday directed all Ministries, Departments and Agencies (MDAs) not to move out their accounts from the banks, whose shares have also been suspended on the Nigerian Stock Exchange (NSE).
A Presidency source disclosed that the confidence building directive came via a circular dated August 17, signed by the Secretary to the Government of the Federation (SGF), Yayale Ahmed, who said: "In the interest of the financial system, all (MDAs) are urged to support government's efforts by ensuring that they continue to patronise all the affected banks."
Also on Tuesday, Nigeria Deposit Insurance Corporation (NDIC) MD, Ganiyu Ogunleye disclosed that the health status of all banks will be known next month.
The NDIC plans to tighten the rules to prevent the erosion of bank's capital base.
Ogunleye spoke in Abuja after Minister of State for Finance, Remi Babalola, inaugurated the board of the NDIC, whose members include Hassan Adamu (Chairman); Ogunleye (MD); Peter Umoh and Umaru Ibrahim (Executive Directors); and Lexy Omoha Lexy.
Other members are Sam Oni; Bennedikter Molokwu; David Oghene; Abdulrahman Dikko, Oyebisi Ilaka, Lawan Gana; and Razaq Lawal.
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It is good the EFCC is going after these bank executives and the borrowers but it would be nicer they went after OBJ, his administration, both legislative branches, past and present, Y'Aradua and his cronnies too. Cleaning a polluted river from midstream is absolute insanity. This is synonymous to what EFCC is doing. You start from the source of pollution so that the whole river comes out clean. This is common sense, not rocket science. Mrs. Waziri is selective in her approach.