Bank CEOs Risk Arrest Over N1.3trn Govt Funds

By Tosin Olatokunbo

Nigerian House of Representatives says it will arrest managing directors and top officials of commercial banks who fail to appear before it in its efforts to uncover N1.3 trillion government funds trapped in some banks in the country. Unyime Idem, the chairman, committee on the recovery of N1.2 trillion unclaimed funds in banks disclosed this on Wednesday after a meeting with some banks officials.

The magazine learnt that some chief executives of some top commercial banks have not been cooperating with the lawmakers since the committee started sitting last month.

“We have sent letters to these banks to release some of their officials that are related to these accounts, but some of them have simply refused to show up. We will have no other options than to wield the big stick if they continue to behave in such an irresponsible manner. As the chairman of the committee said we are giving them up to Tuesday nest week to honour our invitation, failure which a warrant of arrest will be issued against them,” one of the committee member said on Thursday.

Also, a top official of a commercial bank had told The Source magazine on Wednesday that “we are already working with the distinguished lawmakers, and will still be available to provide necessary assistance whenever we are required to do so. We have nothing to hide.”

So far, the lower house said it has already uncovered N300 billion stacked in some banks, that more will be discovered in due course as investigations continue on the issue.

Speaking after a session with Citi Bank and officials of the Nigeria Investment Promotion Council, NIPC on Wednesday, the chairman of the committee said everything will be done to ensure that the banks cooperate with the committee.

He said the committee will ensure that accounts operated without signatories and BVN are shut down completely.

According to him, “These accounts have been existing. We don’t open accounts without signatories. We said customers did not provide BVN details. What we mean by ‘No Signatory” is that we have listed the signatories. That’s what happened.

“If you don’t have BVN and it’s an existing account from the onset and if you are meant to be a signatory to the account and we don’t have your BVN, we delist you and you can’t operate the account anymore. We are not deleting ownership. We are just stopping the operations of the account until you comply with the requirements

Idem said the committee will not rest despite uncovering N300 billion, noting that the ‘hanging funds’ are from failed transactions by government agencies and banks.

The committee is currently looking at various documents related to such accounts and will summon commercial banks officials to shed light on grey areas when necessary.

He said; “So far, we have discovered about N300 billion. I am sure that by the time we are done with this assignment, we might exceed the target given to us by the leadership of the house,” Idem said.

“The commercial banks are regulated by the government and they cannot refuse us. This assignment is crucial. We will not allow any government agency or commercial bank to undermine our power,” he said.

“If the commercial banks fail to appear, the next line of action will be to summon them.”