Date Published: 05/12/10

Ex-bankers seek intervention over unpaid N9b benefits

A N9 billion unpaid terminal benefits may have pitched 12,000 former bank workers in the country against the Central Bank of Nigeria (CBN), with the ex- staffers, who were laid off during the consolidation era, threatening to drag the apex bank to the international community

Out of the 89 banks in existence prior consolidation in 2004, 14 of them, including All States Trust Bank, Hallmark Bank, Apex Bank, Trade Bank, Fortune Bank, City Express Bank, Triumph Bank, failed to meet the capitalisation level of N25 billion within the 18 month deadline given by CBN.

Already, the law chambers of Dio-Medumere had written to both the presidency and the Governor CBN on the move to involve international bodies on the impasse over the terminal benefits' payment.

The letter was signed by Emenike Emerson Azubuike (Esq) ACIB (Solicitor and Advocate), stated: "Our clients are insisting on drawing the attention of the international community by sending to them the compedium of letters of their demand for their human and civil rights among other actions if their demand for the payment of their terminal benefits which has lasted for more than five years is not given spontaneous attention this time around."

"This is to enable the human race judge how the leadership of this great country treat their citizens and to see if their influence will make the Federal Government of Nigeria listen to our clients."

Meanwhile, the CBN had addressed the issue in a letter to the group dated March 11, 2010, titled: "Re: A case of non-payment of terminal benefits of ex-staff of banks that failed post consolidation in line with CBN gazzetted policy on displaced staff of banks that were de-licensed in the consolidation exercise of 2005."

According to the letter, which was signed on behalf of the Director of Banking Supervision of the apex bank by D.N. Gana, "the Central Bank of Nigeria management has resolved that the terminal benefits of ex-staff of banks that failed the consolidation cannot be paid under the Purchase and Assumption Arrangement.

"Payment of the benefit which has been classified as 'Other Creditors' by the Nigeria Deposit Insurance Corporation (NDIC) would be paid under the normal liquidation process being carried out by the NDIC."

Based on that, CBN had advised the group to "kindly refer all further correspondence on this issue for the NDIC."

Guardian