Reports has it that operatives of the Economic and Financial Crimes Commission (EFCC) have raided the head office of Heritage bank.
In a report by the NewsGuru.com, the EFCC had frequently visited the bank’s headquarters three times within the last ten days with various bank officials picked up for questioning.
The first arrest was made on last week Monday, the second on Friday and the third on Tuesday. The names of the officials arrested on these days are: Funmi Taiwo, Adetola Sanusi and Adewunmi Adeniyi respectively.
Although the reason for these arrest were not stated as at the time of these arrests, a Daily Times investigation has revealed on the contrary that Heritage Bank Plc is not under investigation by the operatives of the Economic and Financial Crimes Commission (EFCC).
The investigation further revealed that the reason why the EFCC raided Heritage bank was because of “acquisition/combination issues”.
A business combination is a transaction in which the acquirer obtains control of another business (the acquiree).
An accounting procedure done during the acquisition of a company by another is the change of the value of the assets of the company being acquired from book value to the fair market value.
Book value of an asset is the value of an asset reflected in the balance sheet of a company, while Fair market value is simply the price at which a buyer is willing to pay the seller for an asset.
According to the reports of the investigation, an account acquired by the Heritage Bank during its acquisition of Enterprise Bank from AMCON was under investigation. It should be noted that the former Enterprise Bank held several accounts of federal government agencies before its acquisition, hence, the operatives of the commission are seeking certain information on the said account, following a petition over certain issues pertaining to the account.