Why Skye Bank died – NDIC
Bank Plc died.
NDIC said its risk assessment and forensic investigation reports
revealed that the erstwhile management of the defunct bank contributed
to its failure by engaging in insider abuse, poor corporate governance
and banking malpractices.
A statement by Mr. Mohammed Kudu Ibrahim, Head, NDIC Communication and
Public Affairs, yesterday, said the Managing Director/Chief Executive
of the corporation, Alhaji Umaru Ibrahim, made the disclosure at the
opening ceremony of the corporation's 2018 Sensitization seminar for
Federal High Court Judges in Abuja.
The statement also quoted the MD to have said that "the reports
identified various malpractices such as fraudulent, false accounting,
manipulation of accounting records to present false profits and
ratios, unlawful loan and credit facilities, non-disclosure of
directors' interests and lending beyond the single obligor limit."
The statement also added that the NDIC and the Central Bank of Nigeria
(CBN) were monitoring the investigations of law enforcement agencies
instituted against the directors and management of the failed Skye
Bank Plc to determine their culpability in the failure of the bank.
The NDIC boss noted that the corporation's implementation of the
bridge bank resolution option that established Polaris Bank Ltd that
assumed the assets and liabilities of the defunct Skye Bank Plc,
resulted in depositors' unhindered access to their funds, the
continuity of the operations of about 300 branches and the
preservation of over 6,000 jobs.
Speaking further, the MD/CE also informed participants that the
corporation has commenced the payment of insured deposits to
depositors of the 153 Microfinance and six Primary Mortgage Banks
whose licenses were recently revoked by the CBN.
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