NDIC talks tough, moves to probe directors of defunct 183 MFBs, PMBs

Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan has said that the Law enforcement agencies may soon be called upon to investigate some Directors and Officers of the 183 Microfinance Banks(MFBs) whose licenses were recently revoked by the Central Bank of Nigeria (CBN).

Daily Champion recalled that the Central Bank of Nigeria (CBN), recently revoked licenses of 183 MFBs and Primary Mortgage Banks (PMBs).

Speaking in Lagos at the 2023 Capacity Building Workshop for Law Enforcement Agencies, with the theme, ‘Effective Collaboration in the Fight Against Fraud and Financial Malpractices in Banks and Other Financial Institutions in Nigeria’, Hassan said the investigation is with a view to bring to book those found culpable in the collapse of these institutions.

Hassan who was represented by  the Head, Legal Department of NDIC, Henry Fomah appealed to members of the task force to continue  to execute their given mandate diligently in order to achieve the objectives of establishing the task force.

He said, “Through your collaborative efforts, I am aware that twelve prosecution cases are ongoing at various courts, twenty five ongoing investigation with Nigeria Financial Intelligence Unit (NFIU), eleven with EFCC and five concluded investigations with the Federal Ministry of Justice for advice and prosecution.

“This is an indication that we are on the right course. Let me say at this juncture that we are not unaware of the challenges of investigating and prosecuting of financial malpractices and bank fraud cases but wish to urge you not to relent in your efforts and be rest assured of our unflinching support at all times.

“Again, we are quite aware of the efforts and measures put in.place by the Regulatory/ Supervisory agencies to curb activities of fraudsters in the system, and it is our firm believe that the efforts are yielding positive results

“The corporation, whilst bearing in mind the positive impact of such collaboration will continue to strive at enhancing the synergy between all of us in the areas of law enforcement relating to investigation and prosecution of financial malpractices,” he said.

Speaking further, the NDIC boss maintained that the capacity building workshop is among the steps taken to provide a platform for the agencies concerned to sharpen their skills, share ideas and be well-equipped to face the challenges.

According to him, this year’s program is the 12th in the series, adding that the corporation intend to sustain the initiative because investigation and prosecution of financial malpractices for a sound and safe banking system requires collaboration and strategic partnership.

“As you all know, a safe and sound banking environment is an essential ingredient of financial system stability which of course is the bedrock for economic development of every nation.

“This workshop, like similar initiative by the Corporation aims at to compliment the efforts of the Inter- Agency Task Force on the implementation of failed Bank Act,” he said.

The NDIC boss further noted that the advancements in information technology that opens new possibilities in banking operations has equally exposed the banking subsector to emerging threats.

He maintained that this situation increases the burden on the regulators and supervisors to enhance their operational capacities, adding that it has also heightened the need for more collaboration between agencies involved in the fight against banking malpractices.

Also speaking, Head, Legal Services at the CBN, Mr Kofo Salam-Alada, said it was essential for agencies that would collaborate with regulators to have deep insight into how regulators operate.

He said “A lot of gaps have been seen which is why we must commend the Nigerian Deposit Insurance Corporation for having been the vanguard of sponsoring capacity building exercises for the past 12 years.