News
Fresh Charges Await Former
Intercontinental Bank Boss--No Plea Bargain For Akingbola
Written by Watchdogreporters.com
Nigeria’s anti-graft agency, the Economic and Financial Crimes
Commission (EFCC) and the Central Bank of Nigeria (CBN) have
finalized plans to roll out fresh charges against, Mr. Erastus
Akingbola, Former MD, Intercontinental Bank
The embattled former CEO of Intercontinental Bank is currently
in the hands of the populous black nation over mismanagement of
the bank, diversion of funds into private use.
This led to his dismissal and the invitation of the EFCC; and
the intervention of the apex regulator through injection of
fresh funds, in the form of bailout. The CBN had granted over
N620 billion to about eight troubled banks, including the
intercontinental bank.
A top official of the CBN informed Watchdogreporters that the
legal team of both EFCC and the CBN would soon make public
details of the charges. The new development is expected to
further worsen the case of the former banker with
intercontinental bank. Unlike the case of Mrs. Cecilia Ibru,
former MD of Oceanic, who is currently in imprison over
misappropriation of the bank’s resources, the CBN, according to
Watchdogreporters’ investigations will not entertain plea
bargain from Akingbola.
It would be recalled that CBN audit exercise, under Sanusi
Lamido Sanusi revealed that intercontinental bank and nine
others were found to be undercapitalized and had lent billions
of dollars in underperforming and uncollectible loans, many of
which had no collateral.
Many of these loans were to friends and business partners of the
senior bankers, even to companies where these bankers had
financial interests. These actions led to the systemic risk
posed to the Nigerian banking system.
Akingbola was charged in absentia and six other directors of
Intercontinental are accused of granting loans to companies in
which they have interests and failing to ensure the bank met
minimum capital adequacy and liquidity requirements.
The court ordered Akingbola’s accounts and assets totaling
around 346 billion naira ($2.3 billion) and $10 million to be
frozen pending final determination of the 28-count charge
against him.
Akingbola is challenging the freezing of his assets in court and
demanding to be reinstated, arguing that Central Bank Governor
Lamido Sanusi did not follow due process in removing him from
his job.
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