# Tags
#Lead Story

Special Investigation Uncovers Sordid Details of Emefiele’s Tenure at CBN

Godwin Emefiele, the former Central Bank Governor, faces allegations tied to the acquisition of Union Bank and Keystone Bank, with a government-recommended nationalization looming over the institutions, according to a report from the banks’ special investigator.

In a document obtained by Outlook Nigeria, Special Investigator Sam Obazee’s report to President Bola Tinubu revealed discrepancies in the ownership of Union Bank, purportedly held by a shareholder based in the UAE. However, investigations disclosed that these entities lacked a physical presence in Dubai, breaching Section 3(5) of the Banks and Other Financial Institutions Act, 2020, rendering their operations in Nigeria impermissible.

The report outlined that proxies allegedly linked to Emefiele facilitated the establishment of Titan Trust Bank and the acquisition of Union Bank, utilizing funds obtained through dubious means.

Regarding Keystone Bank, the investigator highlighted irregularities involving individuals acting as proxies, purportedly aided by Emefiele and the Central Bank, in acquiring the bank without substantiated payment records. An intricate financial transaction involving a government-related entity depositing N20bn into Heritage Bank, followed by a N25bn loan to an Emefiele-associated vehicle, eventually facilitated Keystone Bank’s acquisition.

Moreover, when the loan matured, Keystone Bank reportedly faced challenges repaying, prompting internal loans of about N50bn within the bank to settle the debt owed to Heritage Bank, exerting immense pressure on Keystone Bank’s management.

The report concluded that documents secured during the investigation would likely lead to the forfeiture of Union Bank, Keystone Bank, and Titan Trust Bank to the Federal Government.

In the scrutiny of Union Bank’s sale, the report revealed efforts to verify Luxis and Magna’s physical presence and corporate standing in the UAE, revealing their lack of existence in Dubai as purported. Additionally, the investigation into Titan Trust Bank uncovered a mysterious shareholder allegedly extending interest-free, long-term loans to entities linked to Emefiele, further complicating the ownership structure.

The findings suggest a complex web of financial maneuvers potentially orchestrated by Emefiele, casting a shadow over the legitimacy of the bank acquisitions and underscoring the need for a thorough inquiry into the alleged improprieties.

Leave a comment

Your email address will not be published. Required fields are marked *