LAGOS—Five shareholders of Intercontinental Bank Plc have dragged the Central Bank of Nigeria, CBN, its Governor and Intercontinental Bank Plc to a Federal High Court in Lagos seeking an order to restrain the CBN Governor from selling the shares of the bank to local or foreign investors.

They are also praying the court to bar CBN from converting the N100 billion injected into the bank as tier two capital as stated in the letter the apex bank wrote to the eight troubled banks whose managing directors were sacked by the apex bank last year into government equity in the bank.

The shareholders are also asking the court to award damages in N250bn in favour of Intercontinental Bank against CBN and CBN Governor jointly and severally, for their unlawful and wrongful interference in the management and control of the Intercontinental Bank and the adverse down-run of its business.

The shareholders are accusing the apex bank of injuring their business, oppression, bad faith and illegality.
Some of the shareholders are retirees who put down their pension as seed money to set up Intercontinental Merchant Bank which is now Intercontinental Bank Plc, they avowed.

The shareholders who dragged the CBN to court are Mr. Sunny Nwosu, Chief Joseph J. Akpieyi, Chief Edwin  Porbeni, Dr. Patrick Amenchi and Chief Ray Okpu.

The prayers of the petitioners contained in the affidavit deposed to by Akpieyi said: “The petitioners’ humble prayers to this Court are: An Order of injunction restraining CBN and CBN  Governor, (Respondents), their privies, representatives, assigns or agents from selling or attempting to sell any shares of Intercontinental Bank and in the alternative a declaration that the members of Intercontinental Bank, as listed in its register of members as at 13/8/2009, have the pre-emption right of acquisition in the event that the purported loan of N100 billion is converted into shares of the bank, for the purpose of being sold.

“A declaration that the Intercontinental Bank, the CBN and the CBN Governor, (Respondents) cannot by the order of 14/8/2009 or any other unlawful means divest the petitioners of their shareholdings in Intercontinental Bank.

Chief Joseph J. Akpieyi, who is the arrow-head of the action and others are also seeking “a declaration that the acknowledgment of receipt by Intercontinental Bank of the unsolicited loan of N100 billion granted by the CBN and CBN Governor is an illegal transaction and that the acknowledgment by Intercontinental Bank of the receipt of N100 billion from CBN and its governor is a fraud on the petitioners and that the order of the CBN Governor dated 14/08/09, addressed to the chairman of Intercontinental Bank is a contravention of the provisions of the banks and other financial institutions act.

Row over BankPHB’s MD’s leave allowance

In another development, indications emerged weekend that all is not well with BankPHB and some top management staff of the bank are already fuming over the allegation that the interim Managing Director collected about $120,000 for a three-week annual leave, thereby subverting the bank’s process and procedure.

Officials of the bank said the Managing Director was entitled to the amount on annual basis but that the CBN-appointed MD spent only three months, October to December but took the full year allowance.

He is also being accused of approving a N60 million mortgage loan for an unconfirmed Deputy General Manager as well as unilaterally changing the bank’s official car policy to his benefit.

The bank’s management is also accused of withdrawing its application for a banking licence in the United Kingdom and is considering  either selling the business as a going concern, open a representative office or close down and dispose of the assets of the proposed London branch.

Workers swear oath

Vanguard gathered that the staff have been made to swear to oath of allegiance and secrecy.
But, a top official of the CBN said the allegation was unfounded and untrue as the board of the bank would be meeting  January 18 and the Managing Director could not have gone on leave.

In a text message to Vanguard, the CBN top official said: “The initial allegation was N60 million. It is untrue, but we will make sure we audit the bank just to check these allegations. We took out thieves and they still have their boys in the system who know they may be implicated in investigations.

”BankPHB has a board meeting on January 18, so, it is impossible to say the Managing Director is on a three-month leave. Some of these rumours are not even smart,” he said.

But, insiders said the bank’s rules and policy were being violated. They argued that the bank’s policy which stipulates that a staff of the bank should have spent a minimum of six months to qualify to earn annual vacation and one-year for executives was not observed when the new Managing Director embarked on a three-week vacation from December 18, 2009 to January 4, 2010.

MD got more  than entitled

They alleged that having spent barely three months, he was only entitled to a pro-rated amount for his vacation, but in utter disregard of the professional advice given to him, he demanded for and was paid $120,000, being the annual off-shore leave allowance for the Managing Director for the financial year ended December 31, 2009 during which he spent only three months.

They also alleged that on assumption of office 2 October 2009, the Managing Director of the bank, also unilaterally, without the Board’s approval changed the bank’s policy on official vehicles for executives, and quickly monetised same to suit his personal purpose, as he personally collects N2 million on a monthly basis in lieu of the vehicles, which are supposed to be amortised over four years.

He is also alleged to have coerced a staff of the Bank, an unconfirmed Deputy General Manager  to prepare the controversial third quarter result, and later compensated him by approving and disbursing a N60 million mortgage loan for him, N21 million more than the stipulated amount for a Deputy General Manager, even when he is yet to be a confirmed a staff of the bank, having spent less than one year at the time of the approval in November.

The bank’s policy, they argued, stipulates that to qualify for mortgage loan, staff at AGM to GM levels should have spent a minimum of two years and should have been confirmed. This approval they alleged, is the only one the Managing Director has approved since he assumed office last October.

They also alleged that some time in December 2009, without a Board resolution the management unilaterally approved the appointment of the MD and, an unconfirmed General Manager as new Directors of BankPHB UK, the bank’s subsidiary, which is yet to take-off.

This decision was said to have been taken without the  input or advice from the Company Secretary or the Chairman of the Bank’s Board of Directors.