Did Ex-CBN Governor Emefiele and AMCON Boss Kuru Conspire to Sell Keystone, Polaris, and Union Banks to Their Friends?

In an exclusive revelation, the former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, and the Chief Executive Officer of the Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, have been implicated in a controversial scheme involving the acquisition of Polaris, Keystone, and Union Banks. Sources allege that this acquisition was not only forceful but also fraught with fraud, leveraging public funds and the power of their respective offices to favour personal connections.

The Scheme Unveiled

It is reported that under the guise of stabilising the banking sector, Emefiele and Kuru executed a well-orchestrated plan to acquire these financial institutions. The intervention led by the CBN in Union Bank on 14 August 2009, which resulted in the ousting of its executive management, is now seen in a new light. Far from a necessary measure to rectify corporate governance issues, non-performing loans, and liquidity concerns, the move is critiqued as a calculated bank grab.

Manipulation and Mismanagement

Upon closer inspection, the financial stability touted by the CBN as the reason for its intervention appears dubious. Union Bank, for instance, reported a favourable shareholders’ fund of N53,145 billion for the financial year ending March 2009. However, under the management appointed by Emefiele, led by Funke Osibodu, the bank’s fortunes took a drastic turn for the worse. Allegations of book manipulation and the creation of questionable provisions led to a reported negative shareholders’ fund of N135,894 billion by the end of December 2010. This drastic reduction in value purportedly laid the groundwork for the bank’s acquisition by preferred investors.

Questions of Ethics and Accountability

The conduct of the new management, particularly in handling the bank’s assets, has raised serious ethical questions. Accusations range from demarketing and asset stripping to the recruitment of cronies and the unjust enrichment of directors through questionable allowances and trips funded at the bank’s expense. The extent of the manipulation suggests a deliberate attempt to devalue the bank, paving the way for its acquisition by selected investors under highly questionable circumstances.

Consequences and Calls for Investigation

The revelations have prompted calls for a thorough investigation into the actions of Emefiele, Kuru, and their associates. The manner in which these banks were acquired, particularly the opaque processes and the significant discrepancies in the reported financial health of the institutions pre and post-intervention, suggests a complex web of corruption and malfeasance.

In Conclusion

The allegations against former CBN Governor Godwin Emefiele and AMCON CEO Ahmed Kuru paint a troubling picture of abuse of power and breach of trust in Nigeria’s banking sector. The detailed accounts of manipulation, asset stripping, and preferential treatment call for immediate and rigorous scrutiny to ensure accountability and the restoration of integrity in the nation’s financial institutions.