Wednesday, 26 August 2009

Bank Directors as Grave Diggers

In an earlier post on the culpability of non-executive directors of the recently bailed-out banks in Nigeria, I asked:

"Having led these institutions to their current troubled state and what Sanusi himself called "a grave situation", why leave the grave diggers in place while trying to breathe new life into these banks"? Why is it that despite the presence of non-executive Chairmen and other non-executive directors, oversight of the management was almost non-existent"?

From the lead story in today's ThisDay newspaper, it appears the authorities are now taking firm action againt this section of the bank's board.

The paper's story:

"The Economic and Financial Crimes Commission (EFCC) has arrested the six non-executive directors of Intercontinental Bank Plc including its chairman, Mr. Raymond Obieri. They were picked up on Monday after they were invited for questioning over the huge debt profile of the bank ... Confirming the arrest of the Intercontinental Bank directors to THISDAY last night, EFCC Spokesman Femi Babafemi said they were alleged to be involved in some shady deals, bad loans and using fictitious names to obtain loans among others".

If these allegations are proven, it's no wonder then that the non-execs looked the other way while management carried on digging a grave for the bank.

No comments:

Post a Comment