Date Published: 08/23/09
The Unity Forum
(Peace, Unity and Progress Association)
Suite 207 APC Plaza Nr. 12 Cape Town Str. Off IBB Way, Zone 4 Wuse, Abuja Tel: 08033063826, 08033584659, 08033041663
Bad Debtors: CBN Governor needs support
The Unity Forum at its meeting of last Wednesday, August 19th, 2009, discussed among other topical issues of national concern, the recent sacking of the top Executive of some leading Nigerian banks penultimate week. The Forum recalled how the Central B ank Governor, Sanusi Lamido Sanusi, in the exercise of the powers conferred on him by the apex bank’s act, announced the sacking of the Managing and Executive Directors of five leading commercial banks ostensibly for lax corporate governance thereby endangering the health of their respective banks and by extension that of the banking industry in general .
Coming, barely four years after the consolidation exercise, the dummy of which was sold to Nigerians against all informed protestations as the only antidote to banks insolvency and gateway to improved service delivery, the Unity Forum sees the CBN’s intervention as the elixir needed to stamp out management recklessness, manipulation, concealment and in some cases outright doctoring of the books as has become the hallmark of many a bank, restore confidence and reassure depositors and investors alike in order to avoid a systemic crash.
For this bold and courageous move, the Unity Forum commends the central bank governor and implored him to go the whole hog and complete the auditing of the remaining banks so that Nigerians who to date have been waiting with bated breath can have their fears completely allayed. The CBN ’ s hammer coming in the manner it did, clearly depicts the nexus that had existed in explaining how the indicted banks got this messy and the role or near lack of it of proper regulation by the relevant agencies. Nigerians may recall how early in the year the outgone CBN Governor, Charles Soludo came in defence of not only these banks but indeed all other banks as being in top shape went ahead to issue them with what has now turned out to be a questionable certificate of good health. One wonders what must have happened in a span of just four months to have warranted what we are witnessing today.
No less culpable in this tragi-comedy of sorts is the Mass media, who for curious reasons instituted and dished out annual awards to these banks as either the best, the most improved or the most socially responsible corporate outfits. With the active involvement or possibly connivance of the media, Nigerians were treated to some of the unwholesome and unethical practices as these banks attempt to outdo one another. What all this points out to is sheer lack of capacity on the part of the media to adequately keep an eagle eye on the financial sector and report it effectively.
The CBN’s shock treatment has ignited a spiral effect which should not under whatever guise stop with the banks. The Unity Forum believes that there are questions for the regulators and supervisory agencies that have been empowered by the appropriate laws to ensure the smooth running of the banking sector but instead chose to go to sleep, thereby putting investor and depositor funds into jeopardy. The honesty, integrity and transparency that we all crave for in our public instituitions must equally extend to the private sector. In the same vein, individuals and corporate bodies already identified as contributing to this state of affairs should be within the constant watch of the security agencies and be made to face the law. The event of penultimate week clearly deficts what befalls a nation whenever it refuses to enforce its own laws.
The President and honest and patriotic Nigerians must keep encouraging and supporting Sanusi to carry through the reform fully, especially in the face of strong and influential opponents to the exercise.
M. M. Abdu (Signed)
Chairman
