EFCC swoops on bank CEOs living ‘extravagant lifesyles’, using cronies to defraud banks

The Economic and Financial Crimes Commission (EFCC) acting on actionable intelligence have launched a probe of chief executives of some banks for living large at the expense of depositors’ and shareholders’ funds
One of the affected bank executives has been quizzed by the anti-graft commission.
Also, the management of the extravagant bank executive was on Wednesday summoned by the EFCC on some infractions already noticed to avert stress.
According to findings, some executives have not learnt from the 2008/ 2009 experience which led to the collapse of some banks in the country.
Intelligence confirmed that some of the affected executives had been hosting lavish parties, buying exotic vehicles, indulging in acquisition of properties at home and abroad, and either chartering, using jets on lease or outright purchase of jets.
Some of the executives were said to be using their cronies to “milk” their banks.
One of the executives being closely monitored allegedly acquired a $5million jet, which is under investigation.
The same CEO allegedly diverted proceeds of two ships in the custody of the bank to his personal account.
The two ships were being used by a multi-national oil firm in the country with huge returns.
The EFCC has however placed the activities of many bank executives under watch to avoid distress at the expense of depositors.
A top source, who spoke in confidence, said: “Intelligence at our disposal on some bank executives has shown that they have not learnt their lessons. Some of them still live big at the expense of the depositors.
“They have been acquiring exotic vehicles, properties at home and abroad, and either chartering, using jets on lease or outright purchase of jets. What they have possessed are beyond their income and allowable perks in office.
“There were allegations of the purchase of a $5million jet by a CEO but we are still investigating. One of them however recently blew millions of naira at a party.
“Some of them even give loans to their cronies or front as part of insider abuse.
“We have placed these executives under watch. In fact, our detectives have grilled one of them. The management of the interrogated bank executive was also summoned on Wednesday where all the cards were laid on the table for them to see.
“What we are doing is to take precautionary measures to avert a repeat of the distress of 2008/2009. We want bank executives to keep to their ethics of their profession, protect depositors’ funds and avoid unnecessary luxury at the expense of their banks.”
Responding to a question, the source added: “There is no cause for alarm in the banking sector but it is a wakeup call for boards of banks to checkmate unnecessary spending.
“We will not release the list of the affected bank CEOs but those who should have relevant information to check them will be informed.”
The Central Bank of Nigeria (CBN) on August 14 , 2009 had sacked five chief executives of banks over N1.1trillion bad loans.
A former CBN Governor, Sanusi Lamido Sanusi (now the Emir of Kano), said the executives were removed due to “excessively high-level non-performing loans in the five banks which was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to the bank’s credit risk management practices.”
The five banks executives and their directors were later handed over to EFCC for prosecution.
While some of the cases are in court, most of the banks have been either merged or acquired.