The Minister of Finance, Hajiya Zainab Ahmed, has directed the Central Bank of Nigeria (CBN), and Nigeria Deposit Insurance Corporation (NDIC), to fully investigate and prosecute all the Directors and Executive Management who contributed to the collapse of the defunct Skye Bank Plc as well as other Deposit Money Banks (DMBs) in liquidation.
The Minister gave the directive during her familiarization visit to the Executive Management of the NDIC led by the Managing Director and Chief Executive Umaru Ibrahim.
The Head, Communication and Public Affairs, NDIC, Mohammed Kudu Ibrahim in statement released yesterday stated that Minister expressed her serious concern about the spate of non-performing loans in the banking industry, adding that while the bail-out of distressed financial institutions was necessary in the interest of the stability of the banking system, emphasis should also be placed on the investigation and prosecution of delinquent Board Directors and Executive management of financial intuitions who abused the trust placed on them by depositors.
According to Ibrahim : “The Minister urged the CBN and the NDIC to use the recent failure of the defunct Skye Bank Plc as an opportunity to deal decisively with any of its Directors and Management found culpable in the course of the investigations, so as to serve as a deterrent to other operators in the financial system as the federal government is no longer prepared to treat such serious infractions with levity.”
Earlier in his welcome address, the NDIC MD/CE assured the Minister that the Corporation will do all it can to assist in the recovery of all the debts owed the defunct Skye Bank and other Banks in liquidation. He also expressed the Corporation’s determination to ensure that the Directors who perpetrated in insider abuse and other illegalities in running the affairs of the bank are investigated and prosecuted by appropriate authorities. The primary concern of the NDIC, he assured the Minister, was to ensure the safety of depositors’ funds and minimise the disruption of banking services.
The MD/CE informed the Minister that since 1991, the aggregate payment to depositors, creditors and shareholders of 46 closed banks amounted to N11.75 billion, out of which the total payments to insured depositors of Deposit Money Banks (DMBs) amounted to N8.252 billion.
The MD/CE also stated that a total of N2.89 billion was paid out to insured depositors of Microfinance Banks (MFBs) covering 81,657 individual accounts, while N69.60 million was also paid to insured depositors of Primary Mortgage Banks (PMBs.)
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