Nigeria’s Nigeria Deposit Insurance Corporation (NDIC) announced it will begin investigating directors of the 183 banks that recently had their licenses revoked.
This was disclosed by the Managing Director of the NDIC, Mr Bello Hassan at a one-day capacity-building workshop for law enforcement agencies on Thursday in Lagos.
The NDIC says it plans to work with the Economic and Financial Crimes Commission (EFCC) and the Nigerian police, to investigate sharp practices by the directors of these defunct banks.
Investigation
Bello Hassan represented by Mr Henry Fomah, Head of the Legal Department of NDIC, revealed that through the collaborative efforts of agencies, many prosecution cases were currently ongoing at various courts, adding:
- “As you are all aware, the Central Bank of Nigeria recently revoked the banking licenses of 183 MicroFinance Banks (MFBs) and Primary Mortgage Banks (PMBs) which may require you to be called upon to investigate some of the directors and officers of these institutions with a view to bring to book those found culpable in the collapse of these institutions.
- “There are 25 ongoing investigations at the Nigeria Financial Intelligence Unit (NFIU), 11 with the EFCC and five concluded investigations with the Federal Ministry of Justice for advice and prosecution,”
The NDIC boss says this shows the corporation, as well as other government agencies, are on the right course through collaboration, adding it would bring to book errant directors, officers, and managers of these banks that led to their collapse.
- “The corporation, whilst bearing in mind the positive impact of such collaboration will continue to strive at enhancing the synergy between all of us in the areas of law enforcement relating to investigation and prosecution of financial malpractices.
- “I want to use this forum to appeal to the members of the task force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the task force,’’ he said.
NDIC said it was not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases urging officers not to relent in their efforts, citing advancements in information technology with new possibilities in banking operations had equally exposed the banking subsector to emerging threats.
In case you missed it
Nairametrics reported last week that The Nigeria Deposit Insurance Commission (NDIC) began the process of payment of depositors in 179 microfinance banks and four primary mortgage banks across the country.
The commission called on depositors affected by the liquidation to provide alternate bank accounts in commercial banks for their payments.
For those without an alternate bank account, it stated,
- “Depositors without alternate accounts in commercial banks and those yet to be verified should therefore visit the nearest NDIC office with proof of account ownership and verifiable means of identification for their verification and payment.”
