By Bayo Bernard, Business Editor
The summon issued against Tunde Lemo, the Chairman of Titan Trust Bank by the Central Bank Investigator, Jim Obazee has thrown up issues over his alleged role in the acquisition of Union Bank of Nigeria Plc.
The Special Investigator has summoned Lemo, a former Deputy Governor of the CBN, to explain his connection in the controversial sale of UBN Plc to Titan Trust Bank which he now heads.
In a letter dated December 24, 2023, and signed by the Head of Operations, Office of the Special Investigator, DCP Eloho Okpoziakpo, the TTB Chairman was directed to report, alongside other top officials of the bank at the Department of Force Intelligence opposite the Force headquarters, Shehu Shagari Way, Abuja on Thursday (tomorrow).
Apart from Lemo those who will be grilled by the police are Cornelius Vink and Rahul Savara.
The acquisition has been described as fraudulent by the Investigator in a report he submitted to President Bola Ahmed Tinubu, following his investigation of the CBN under embattled former Governor, Godwin Emefiele.
Lemo, a former CBN Deputy Governor has been fingered in the alleged fraudulent acquisition of UBN Plc, serving as one of the proxies of Emefiele. He has denied the allegation.
The TTB Chairman served as the Deputy Governor of Nigeria’s apex bank from 2004 to 2014 before he retired.
He once served as the Managing Director/ chief executive of Wema Bank Plc.
Nothing was heard of him after retirement until December 12, 2018, following the establishment of TTB.
His image was further bolstered three years after, on December 18, following a Share Sale and Purchase Agreement, SPA, deal signed by TTB with Atlas Mara Limited, Union Global Partners Limited, Emeka Emuwa, Standard Chartered Bank, Montane Partners West Africa Limited, among others, for the acquisition of UBN Plc.
Speaking on the acquisition two years ago, Lemo described the deal as a key step to propelling TTB to the top of Nigeria’s financial sector.
He said, “The deal represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model, which promises to enhance the product and service offering for our combined valued customers.”
But not a few key players in the financial sector had wondered how TTB, barely three years old at the time could have acquired one of Nigeria’s longest financial behemoths within a short period of its existence.
Apart from this, many had also wondered how UBN Plc could be sold to TTB for a paltry N191 billion considering the vast assets owned by the old-generation bank, apart from the large customer base, and its branch network across the country.
Key players in the sector had picked holes in the deal pointing at these salient issues, but the CBN regulator said the acquisition was carried out with utmost due diligence.
While also responding to an alleged fraudulent acquisition three days ago, TTB in a statement said the deal was solid, and that Lemo and others involved in the deal are people of integrity with international repute.
TTB said it has provided the Special Investigator with the ownership structure of the bank, saying there is nothing to hide.
The bank said, “There is no illegality or fraud in the acquisition as alleged. We insist that this acquisition can vie for one of the most professional and transparent in the history of this country.
“These individuals are prominent global entrepreneurs and have thriving businesses in Nigeria and several countries around the world. The shareholding structure is also verifiable at the Corporate Affairs Commission (CAC).
“Therefore, we urge our customers, shareholders, and stakeholders to remain calm as we do everything legal to ensure that the current misunderstanding is clarified,” the bank said.
On July 30, President Tinubu appointed Obazee, a former chief executive of the Financial Reporting Council of Nigeria, FRC, to probe the Emefiele-led CBN following his suspension by the president the same month.
The probe panel recently submitted a damning report indicting the former CBN governor and other top officials of the regulator.
Apart from the alleged financial malfeasance said to have been committed by Emefiele and other CBN officials, the report said the sales of UBN Plc and other banks should be looked into.
The banks must be recovered from the acquisitors, the report also said.
The report said, ‘’When we carried out investigation, we discovered that some persons were used as proxies by Mr Godwin Emefiele to set up Titan Trust Bank and acquire Union Bank therefrom, all from ill-gotten wealth.
‘’We were able to secure some documents and investigation reports will lead to the forfeiture of the two banks to the Federal Government. We have completed our investigation on this acquisition and have also held meetings with the relevant parties except for Mr Cornelis Vink (that is currently hospitalised in Switzerland).
‘’Otherwise, we are on the verge of recovering these two banks for the Federal Government,’’ Obazee claimed in his letter.
Emefiele who was released on N300 million bail last Saturday, is currently being prosecuted by the Economic and Financial Crimes Commission, EFFC, for an alleged procurement fraud to the tune of over N6 billion, and other sundry charges bordering on the alleged abuse of office while he presided over the state-controlled bank.
According to the report submitted by Obazee to the president on December 20, the investigator said the former CBN governor, used “ill-gotten wealth” to establish TTB, which he used as a vehicle to acquire Union Bank and Keystone Bank through some of his proxies.
