Investor refutes CBN investigator, claims Afrexim loan financed Union Bank acquisition, among other things

The majority owner of Titan Trust and Union Banks, Tropical General Investment Group, has denied any wrongdoing in the former’s acquisition of the latter.

This was because, according to The PUNCH, the alleged investigative report that suggested the federal government take over the banks painted Nigeria in a negative light.

The company provided an explanation in response to the report of Special Investigator Jim Obazee’s special investigation into the operations of the CBN and other related entities.

Godwin Emefiele, the immediate former governor of the CBN, was accused in the final report, which was delivered to President Bola Tinubu on Wednesday, of using ill-gotten wealth to purchase Union Bank and Keystone Bank through proxies.

However, Rafiat Gawat, Head of Corporate Communications, stated in a statement on Sunday that well-known international financial institutions like Citibank and Rothschild managed the $500 million in capital that was utilised to fund the deal. The capital was transparent and unimpeachable. She also mentioned that it took years to finish the process.

In part, the statement said, “We want to clearly state that some of the assumptions made in the alleged document were incorrect, leading to a conclusion that might not accurately reflect the situation as it actually is.

The alleged inquiry report suggested that the Federal Government should assume control of the banks. Such statements, which are predicated on false premises, present Nigeria in a negative light, particularly in light of the President’s persistent efforts to attract foreign investments to the nation.

The true facts of the case are as follows: Tropical General Investment Group is the majority owner of Titan Trust and Union Bank. We have been doing business in Nigeria for close to 45 years and have evolved into one of the largest companies in West Africa and the acquisition of Union Bank by Titan Trust Bank followed all the laid down rules and regulations.

“The approximately $500m capital used to pay for the transaction was transparent and unimpeachable. The entire transaction was managed by highly reputed global financial institutions, including Rothschild and Citibank. And like most major acquisitions, the process took years to complete.”

According to her, the rest of the capital was sourced from the proceeds of TGI’s sales of its Chi Limited business to Coca-Cola, all to finance the acquisition of Union Bank.

“A $300m loan was sourced from African Export-Import Bank and the rest of the capital was sourced from the proceeds of TGI’s sales of its Chi Limited business to Coca-Cola, all to finance the acquisition of Union Bank.”

Debunking claims that the bank didn’t respond to enquiries, Gawat explained, “The investigator’s claim that Union Bank did not respond to his request for information was misleading as all the information requested was submitted on September 1, 2023. It’s a well-known fact that Mr Vink, who has been in Nigeria since 1978, is an elderly person and has recently been medically advised to limit his movements. This was duly communicated to the investigator with supporting documents.

“TGI’s capital, ownership and selling of Chi to a multinational such as Coca cola is proof that Mr Vink is not a proxy. The group’s ability to engage and work with reputable international financial advisors and bankers attests to the group’s global credibility. Union Bank was not owned by government and no government money (CBN or AMCON) was used to buy it. The process was diligently followed as captured in the report of the investigator.”

The bank urged its customers, shareholders, and stakeholders to remain calm as it would do everything legal to ensure that the current misunderstanding was clarified.

“As responsible corporate citizens, we are always willing, ready, and able to support stakeholders including regulators to learn and understand our Group and its operations,” the statement concluded.