Anxiety still runs deep in the financial sector, as a fresh audit of the 24 banks begins on Tuesday, which may culminate in more sacks besides the five Managing Directors (MDs) who lost their jobs in the cleansing done by the Central Bank of Nigeria (CBN) on August 14.
Investigation showed that the CBN began last week another examination of the books of the five troubled banks – Intercontinental, Afribank, Finbank, Oceanic, and Union – to garner more evidence against the sacked MDs.
But sources in the banks countered that the examination should have been done before the hammer was applied to bring the MDs and bank debtors under public scrutiny.
The new audit will be on domestic and international operations, including credit lines; and the passports of officers in key departments have reportedly been seized to prevent them from travelling out of the country.
It is alleged that staff are being asked to implicate their former MDs in return for promotion.
It is also alleged that the audit is to get strong evidence which the CBN did not have before getting rid of the MDs.
“That, ” said a source, “is the reason behind the spate of arrests of bank chiefs which as at last Saturday numbered about 15. Arresting and harassing them is aimed at getting all the evidence of ‘mismanagement ‘ needed to nail the bank chiefs. ”
It was learnt that the computers at the five troubled banks have been seized and the telephone lines bugged by security agents seeking information.
The CBN may have been jolted last week by the resistance put up by two of the banks former MDsww – Erastus Akingbola of Intercontinental, and Cecilia Ibru of Oceanic – who appear ready to fight the CBN to the last man.
Sources said the CBN did not anticipate hitting such firewalls.
Back in 2004 when the CBN under Chukwuma Soludo shocked the industry by demanding N25 billion as minimum capital for all banks, there was no resistance, except for murmurings which quickly fizzled out as the banks swung into action to beef up their capital base.
The requirement led to about 50 banks losing their core identities, but there was little or no faulting of the motive behind the initiative.
However, top on the table now are the mounting contradictions in the figures released by the CBN and bankers ‘ faulting of its mode of examination as well as its motives.
While Ibru and Akingbola are said to be on the run, the Economic and Financial Crimes Commission (EFCC) has so far arrested 15 bank executives, some of them belonging to the subsidiaries of the troubled banks.
Among the activities expected this week is the outcome of the deadline of seven days given by the EFCC for bank debtors to pay up.
On Sunday, federal Attorney General and Justice Minister, Michael Aondoakaa, threw his weight behind efforts by CBN Governor, Lamido Sanusi, to reposition the banking system.
A statement issued by his Media Assistant, Onov Tyuulugh, said the drive is to ensure confidence in banks, and urged shareholders to consider it a positive step to avert calamity.