The Central Bank Governor, Malam Sanusi Lamido Sanusi, says the apex bank will defend its allegations against the rescued banks, as the issues about their failure are facts.

Sanusi’s postion is contained in a lecture entitled: “Consolidating The Gains Of The Banking Sector Reforms”, which he delivered in Asaba yesterday at the 1st  Sylvester Monye Foundation Lecture Series.

He said that the problems of the eight banks, whose management teams were sacked in 2009 for unethical practices were grave.

He indicted the Central Bank of Nigeria (CBN) and Nigerian Stock Exchange (NSE) for failing in their regulatory roles.
He said that the present CBN management was prepared to testify in the cases against the banks in any court, adding, “we have enough facts on their activities”.

Recalling the banks’ irregular activities, Sanusi said that Afribank, in its last public offer to re-capitalise, “actually genuinely raised only 12 per cent of the funds while 88 per cent represented its re-circled funds”.

“It is in this country that Intercontinental Bank gave out N40 billion as loan to somebody from Delta, who used the state government’s shares in a company as collateral.” he said.

The apex bank’s boss said that he foresaw the rot in the banking sector but was dubbed “John the Baptist, who was crying in the wilderness”.

His said, “As a manager in a bank, I raised alarm over the rot in the system and imminent collapse of the banking sector, but I was called John the Baptist, who was crying in the wilderness for nothing.

“They called me a prophet of doom and even doubted my mental stability as I was the only person, who was seeing something wrong in the system whereas the banks were doing well.”

He said events in the sector had vindicated his promptings and called on all Nigerians, especially investors, to keep faith with the financial industry and support the revamping of the economy.


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