FULL LIST !
ANalysis by Oluwafolabomi on Aug 19 2009
I would like to note a few interesting facts.
1. Access Bank managing and deputy managing director are owing N16 Billion in a personal capacity while hounding Femi Otedola who owes through a company...pot calling the kettle black.
2. Fola Adeola, founder of Fate Foundation, and a shareholder in this newspaper, on the list from being a director at Omatek. An obvious example of the endemic nature of the lack of corporate governance in Nigeria's publicly listed companies. Isn't a board of directors suppossed to guide the company away from such issues.
3. President Yaradua's, son-in-law (to be), a debtor too through RAHAMANIYYA OIL AND GAS LTD! I guess there is no accounting for taste when taking on new in-laws! Will there be a "Federal" bailout or will Yaradua be aloof to the travails of his new family.
4. "Who watches the Watchmen?". There is no wonder that the NSE doesn't support fighting the problems of insider dealing when it's head, NDI OKEREKE-ONYIUKE, is a director of a a company with several billions in bad debts. Afterall would you ban yourself? It's also interesting to note that both the current, Aliko Dangote, and immediate past presidents of the NSE, Oba Otudeko, are represented here too!
5. That Aliko Dangote's name appears does not surprise me. When you owe as much money as he does,you get to boss your creditors around since you are "too big to fail".
6. ARISEKOLA ALAO & Oba Otudeko owing billions of Naira, while being a major shareholders, gettng dividends, in First Bank.
7. Femi & Nana Otedola, whose lavish expenditure on a boat apparently costing over $12 million is to be noted, obviously live a life that cannot be supported without debt that they have no intention of paying back. Evidently its true that empty barrels really do make the most noise.
8. (Barrister) Jimoh Ibrahim has never been afraid of debt so he was bound to be here in some capacity. But not paying it back, while not a crime, is basically dishonest! Wetin lawyers dey do sef?
9. PRINCE FEDRICK .E. AKINRUTAN is just about to be made an Oba, who will then be dispensing "fatherly" advice to his people. Will that advice include "Go forth and accumulate debt". There is nothing dishonourable in running your business through debt financing. After all the government does it most years. The problem comes when you live a life, that drains the company of its life blood, while putting other peoples and your staff's livelyhoods at stake. That's just plain criminal and shoud be treated as such!
ARTICLE READ MORE HERE
Pushing on doggedly with its reform of the septic banking environment in the country, the new management team at the Central Bank of Nigeria (CBN) late Tuesday published the list of the country's worst debtors on its website as an "Advertorial."
In a prefatory note to the table of debtors that has 205 names, the CBN said, "Following the recent regulatory action of the Central Bank of Nigeria on the five banks, it has become necessary to use this medium to request the following defaulting customers of the affected banks to pay without further delay their indebtedness, failing which the banks will take all appropriate legal actions to ensure repayment.
"These are the largest debtors and the CBN will continue to publish the list of defaulters on an on-going basis."
A keen reading of the CBN advertorial indicates that the five ailing banks that lost their management team in last Friday's "Bank Massacre", were neck deep in debt reaching the staggering proportions of N740 Billion, a quarter of the nation's annual budget.
The CBN Governor, Lamido Sanusi, blamed the intimidating numbers on what he described as the poor risk management, and corporate governance profile of the banks' management.
The Central Bank also took the daring step to name the institutional and individual debtors, many who are among the nation's high and mighty, and also warning them to "pay without further delay their indebtedness, failing which the banks will take all appropriate legal actions to ensure repayment."
Of the 205 debtors, most of whose indebtedness are in the double digit bracket, three elect for a daring borrowing culture which the CBN derisively characterise as "Non-performing", an euphemism for a poor credit record of not servicing ones debt.
These are companies in the Rahmaniyya Group which owe just two of these banks 41 Billion naira; companies headed by Peter Ololo, which owe three of the banks 76 Billion naira; and companies owned by the controversial Transcorp Plc, which owe two of the banks 41 Billion naira.
The Rahmaniyya Group is owned by Abdulrahman Bashir, Peter Ololo is the Managing Director of Falcon Securities in Lagos while Transcorp Plc is headed by the Director General of the Nigeria Stock Exhange, Ndi Okereke-Onyiuke.
The CBN stated in its advertorial that its action in exposing the debtors draws directly from its mission to restore proper regulatory culture in the industry long characterised by an "anything goes attitude."
Some of the banks had attempted to rationalise the huge debt overhang in different ways. The management of Intercontinental bank, one of the five ailing banks, in an open letter to President Umaru Yar'Adua on August 12, blamed its debt on "a plethora of personalities otherwise called the cabal who have deliberately refused to make returns in respect of facilities from which they have benefitted."
These could however not save the bank's management from being fired by the CBN. Other banks whose management were sacked are Union Bank, Afribank, Oceanic Bank and Finbank.
FULL PAGE LIST !
FULL LIST on CBN WEBSITE SCROLL TO SEE MORE BIG MEN DEBTORS ! http://www.cenbank.org/Out/publications/pressRelease/GOV/2009/ADVERTORIAL2.pd
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