Wema Bank: A dance of the absurd
By Seun Adesida
Monday, September 8, 2008
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•Phtoto:
Sun News Publishing
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The events of the past one week in one of Nigeria’s
old banks is a sore point in the nation’s financial
history. Here brigandage was elevated to a position of ovation
which industry analysts called corporate brigandage bordering
on gangsterism.
There is an adage in Yoruba land to which Wema Bank has strong
roots which says “When you see the cat performing ablution,
its not planning to pray rather it is a sign that it wants
to steal meat. That was exactly what the erstwhile managing
director of Wema Bank did. He was still under investigation
and the next thing he did was to start acting like somebody
on a self destruct mode.
But kudos must be given to the Central Bank of Nigeria (CBN)
and the person of the governor and management of the apex
bank for carrying out a commando operation that was perfectly
executed to get rid of the malaise that was threatening to
destroy the fabric of the entire financial system.
So, it was good news on Thursday when the apex bank wielded
the big stick, through the governor, Prof. Chukwuma Soludo
who formally announced the sack of the erstwhile group managing
director of Wema Bank Nigeria Plc, Mr. Jeremiah Adebisi Omoyeni
and the appointments of a new Acting Managing director, Mr.
Layi Alabi an Executive Director with Union Bank Nigeria Plc.
Soludo said while annoucing the change, “In exercise
of the powers conferred upon me by section 32 and 33 of the
Banks and Other Financial Institutions Act, 1991, as amended,
hereby: (a) Remove Mr. Jeremiah Adebisi Omoyeni as a Director/Managing
Director (CEO) of Wema Bank, Plc; and, (b), Appoint, the following
to complement the existing members of the Board: 1. Mr. Layi
Alabi, Acting Managing Director/CEO 2. Mrs. Christy Okoye,
Executive Director 3. Mr. Iliya Dauda Rapu Ndirpaya, Executive
Director. The Ag. MD, Mr. John Aboh will continue to act and
will hand over to Mr. Alabi on Monday, 8th September, 2008.
Given under my hand at Abuja this 4th day of September, 2008”
Soludo said “whereas in exercise of powers under Section
32 of Banks and Other Financial Institutions Act 1991 (BOFIA)
a Special Examination of WEMA Bank Plc was ordered and the
Special Examination Report has been concluded. WHEREAS the
Central Bank of Nigeria is satisfied that WEMA Bank Plc faces
challenges in the circumstances described under Section 32
of BOFIA and it being in the interest of the public to ensure
good corporate governance in the management of WEMA Bank Plc
and in further satisfaction that the business of WEMA Bank
Plc requires immediate strengthening to protect the interest
of its depositors and shareholders”.
The governor explained that the CBN, NDIC, SEC, ODUA Group,
Board Members of WEMA Bank met on 20:08:08 in the desire to
find a lasting solution to the crisis bedevilling the bank
and signed a Memorandum of Understanding outlining the road
map for the resolution of the crisis. This was done by a Memorandum
of Understanding (MOU) jointly signed by the relevant stakeholders
of WEMA Bank Plc, it was resolved that additional directors
be appointed to strengthen WEMA Bank’s management team.
The governor said the Central Bank of Nigeria is further satisfied
that the forceful take over of the affairs of WEMA Bank Plc
by Mr. Jeremiah Adebisi Omoyeni despite the Central Bank’s
express instruction to the contrary portends grave danger
for the bank and the financial system.
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