Over the last century, Union bank has made a fortune from the Nigerian
\nbanking industry, it is however a tragedy that a lot of that fortune has
\nbeen made by officials defrauding customers.<\/p>\n
Union Bank Plc recently released its H1 2017 earnings, posting N73 billion
\nin Gross Earnings, a growth of 22.6% over the last year.<\/p>\n
However according to insiders, the bank is exposed to litigation issues
\nthat could see it in serious financial trouble in the future as events
\nunfold in the courtroom.<\/p>\n
Union Bank has had its fair share of legal issues like all players in the
\nbanking sector, however its low profitability (the bank posted N9 billion
\nPAT for H1 2017), could take a further hit as legal issues continue to
\nfold.<\/p>\n
There are several legal issues plaguing the bank. According to one source
\nwith knowledge of the bank\u2019s legal issues, there is a case that has been
\ninstituted against the bank for over two decades and is recently making
\nheadways, after one of Nigeria\u2019s top legal firms was hired to prosecute
\nthe matter at the Lagos High Court.
\nThe matter alleges the bank acted improperly by exercising their right to
\nsell the property of a client, a late accountant from the South-West, in a
\nfraudulent manner thereby causing the family untold hardship, pain and
\nsuffering, over a period exceeding two decades.<\/p>\n
The family is reportedly in court claiming over nine figures in damages
\nagainst one of the oldest lenders in the country.<\/p>\n
Over the years, the fraud perpetrated by various employees and agents of
\nUnion Bank exceed tens of billions of Naira.<\/p>\n
For instance in 2009, the Central Bank of Nigeria sacked Bart Ebong, then
\nMD of Union Bank Plc, for his part in a $90 million fraud perpetrated
\nagainst the Nigerian people. The bank was also at the same time involved
\nin a N500 billion margin loan default. 20 charged were filed by the
\nEconomic and Financial Crimes Commission bordering on money laundering and
\nother offences.<\/p>\n
Also in 2016, the Federal High Court issued a writ of summon to C. S.
\nSankey, chairman, Nigeria International Bank Limited, Citi Bank; Emeka
\nEmuwa, managing director, Union Bank Plc and Olusola Fagbure, legal
\nadviser\/company secretary, Citibank, to appear before it on Monday,
\nJanuary 25 in a N10.7 billion criminal charge preferred against them and
\n14 others by the federal government of Nigeria.<\/p>\n
Order charges filed against the bank in relation to that suit included
\n419, conspiracy, and forging of documents against others.<\/p>\n
Also in 2014, two senior managers of the bank diverted depositors funds
\ntotaling N661 million for personal use.<\/p>\n
In the process of their crime, they falsified documents to cover their
\ntracks.<\/p>\n
These are just a few of the instances of criminal fraud allegedly
\nperpetrated by the management and staff of Union Bank Plc, which place the
\ncompany\u2019s financial future in a place of uncertainty.<\/p>\n
Other banks in Nigeria have recently been made to settle their legal
\ndisputes to the tune of billions of Naira. The advantage the banks have
\nover the customers and other little guys who have been ripped off is they
\nhave the money to keep the litigation tied up in the courts for years.<\/p>\n
However recent decisions, some even by the Supreme Court of Nigeria have
\nbeen in the favour of defrauded bank customers, and some litigants are
\nready to continue spending money to ensure that the banks pay what they
\nowe.<\/p>\n
Banks have a fiduciary duty to their clients, and in situations where the
\nbreadwinner goes to a bank like Union bank and takes a loan, but is unable
\nto settle it due to his untimely death. And instead of showing
\nprofessionalism, the bank goes ahead to collude with unscrupulous persons
\nin order to circumvent the wishes of the late customer and dispose of his
\nassets in a fraudulent manner so as to receive illicit gains, such
\nsituations are unfortunate.
\nUnion Bank Plc is planning a N50 billion rights issue, shareholders who
\nintend to increase their shareholding in the bank would do well to ensure
\nthe bank has disclosed its exposure to potential multi-billion Naira
\njudgments so as to avoid even more litigation in the years, and even
\ndecades to come.<\/p>\n
One of the bank\u2019s largest investors, Bob Diamond is a former top executive
\nof Barclays Bank UK who was forced to step down amid an interest rate
\nscandal that saw Barclays employees who were directly under his
\nsupervision, commit multi-billion pounds fraud in order to make a profit
\nor spruce up their books during the 2008 financial crisis. A crisis that
\nbegan in Europe and eventually affected banks in Nigeria, including Union
\nbank.<\/p>\n
Barclays was fined \u00a3290 million (N145 billion) and Bob Diamond was forced
\nto resign. He has since set up shop in Africa were banking regulations are
\nnot as stringent as the United Kingdom or United States of America.<\/p>\n","protected":false},"excerpt":{"rendered":"
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