In the first part of this report, this medium gave a background into why the staff of the Central Bank Nigeria, CBN are calling for the sack of the bank’s chief, Godwin Emefiele.
The report, which emanated from an open petition by some concerned staff of the bank espoused 8 reasons including promotion laced with nepotism and favoritism, massive fraud and contract scam and massive forex scam and malpractices among others.
This second part of the report highlights the individual reasons which the staff based their petition on. Read the first part of the report here. Enough Is Enough, Emefiele Must Go: 8 Reasons Staff Want CBN Governor Sacked – Part 1
Recruitment Spree For The Connected Alone
One of the key issues the staff are aggrieved for is concerning the recruitment exercise going on in the bank. While these recruitment are being done without due process, only the children, relatives and friends of influential Nigerians and top government officials are considered.
“The governor had embarked on recruitment spree since his assumption of office and even alarmingly after President Buhari was sworn to office on May 29, 2015. The incompetent corrupt governor has used this channel to effectively enjoy patronage and secure his job by employing children and nominees of powerful men in government both of the executive arm, National Assembly and the Federal Character Commission,” the petition reads.
“Continuing, the petition said “he has so far employed over 2,500 employees without conducting any pre-employment tests or interviews, some of whom failed drug tests, and had either third class degrees or deficiencies in O’levels.
Abusidiqu confirms that reports of the recruitment scam in the CBN has been public knowledge since 2015 and that despite the outcry that trailed several reports exposing the recruitment, the bank management has continued to recruit candidates tied to influential or highly placed Nigerians without following due process.
Few weeks ago, Abusidiqu reported the continuous recruitment going on in the bank where the bank management as a way of concealing the identities of beneficiaries introduced the use of code numbers as against the names of the employees.
The bank had previously used the beneficiaries’ first names and their father’s middle names to hide the real identities of politically motivated recruitment. For instance, the bank listed Maryam Atiku as “Maryam Abubakar.” In another case, the bank entered the name of the son of Nigeria’s Minister of Interior, Abdulrahman Dambazau, as “Nagode Abdulrahman.” In other instances, the bank used the maiden names of hired persons instead of their married names.
Billions Spent On Purchasing Properties For Senior Bank Officials
The concerned staff also cited the fraudulent acquisition of 4 houses for Deputy Governors in Maitama at the cost of over N12 billion in contravention of the monetization policy as well as the N10billion spent in renovating the house of the governor which was purchased and fully furnished by the former governor, Sanusi Lamido Sanusi, who is now the Emir of Kano.
Abusidiqu had exclusively reported the purchase of the houses in 2015, barely six months after the incumbent governor took over the management of the Central Bank from Mrs Sarah Alade, who acted as the CBN Governor upon the suspension of Sanusi Lamido.
Four houses with three of it located in the rich hub of Maitama and 10 units of houses located in Wuse II were purchased for the Directors and Deputy Directors of the bank respectively by the governor, Godwin Emefiele. This is in spite of the fact that the Deputy Governors and Directors were already living in eye popping mansions at the expense of the poor masses.
A total of N17billion was said to have been spent in the purchase of the 10 houses in wuse II at a unit price of N1.7billion whereas, the properties were said to have been advertised at N520 million per unit before the CBN indicated interest in purchasing the properties.
The bank staff said in spite of the spending of this huge fund, the Committee of Governors had paid themselves the sum of N500million housing grant on assumption of office and as well as the fleet of over 8 luxury cars for each of them.
“The Governor also spend close to N10 billion renovating an already existing house on Colorado Street, Maitama which was built just 4 years before he took office by Julius Berger. The Governor and his 4 deputies live celebrity lifestyles while the hardworking staff of the bank live on loans and more loans,” the staff said.
The staff further added that there “was the acquisition of houses at No 1, Monrovia Street, Wuse 2, for Directors of the CBN at the cost of N17 billion not minding that the house were advertised by the developer for N5 billion before CBN came into the picture. This is also against the monetization policy of the Federal Government as the Directors are paid housing allowances.”
Deliberate Refusal To Wade Into Crisis Rocking Some Financial Institutions
CBN staff are outraged over the refusal of the Central Bank governor to wade into the massive undercapitalization issues, liquidity and collapse facing some financial institutions. The staff view the action as resulting to the banking sector becoming a shadow of itself.
The staff cited examples in Aso Savings and Loans Limited, Skye Bank, and Fortis Micro-finance bank, all of which they said have been facing serious banking issues in recent times.
In the case of Aso Saving and Loans Limited, the staff said the CBN under Emefiele fraudulently granted the financial institution bailout in the sum of N10billion even when same was not required by the bank. The fund is alleged to have been diverted into the personal accounts of some politicians including that of Shamsudeen Bala, son of former Federal Capital Territory Minister, Bala Mohammed.
The diversion of the fund which was allegedly done on the instruction of the CBN governor, Godwin Emefiele is said to have gone down the drain as no single kobo of the money originally meant to be a loan to Aso Savings and Loans Limited has been paid back to the Central Bank of Nigeria, the staff alleged.
Additionally, Aso Savings and Loans is reportedly in financial crisis with over N20billion of depositors fund misappropriated in the last two years without necessary actions from the CBN management until recent times when it is becoming obvious the scam can no longer be hidden.
“As we write this, Aso Savings and Loans has gone under the past two years with over N20 billion of depositors funds without any action by the CBN or against the CBN for its complicity in the matter. Poor depositors don’t have access to their deposits yet Emefiele continues to enjoy praises from the villa.”
The staff also justified the deliberate refusal to take actions on the crisis rocking some financial institutions with the crisis in Fortis Microfinance Bank which they said has gone bankrupt.
“Of recent, is the crisis brewing in Fortis Microfinance Bank, one of Nigeria’s foremost and largest Microfinance Banks. Fortis has technically gone bankrupt with huge deposits belonging to individuals and other financial institutions. The bank is dead and it seems Emefiele is ready to pretend all is well as in the case of Aso Savings.”
The staff also made mention of Skye Bank Plc, where the former Managing Director, Tunde Ayeni allegedly defrauded the bank to the tune of N150 billion, but has been left to roam the street a free man when the CBN management ought to have forwarded his case to the appropriate security agencies.
They claim that the various examinations and forensic investigative reports on the alleged fraud are available in supervisory department of the bank.
Massive Forex Scams and Malpractices
Allegations of massive forex scams and malpractices also tops some of the reasons the CBN staff want Emefiele sacked.
The staff accused the CBN Governor of creating artificial scarcity of forex and single-handedly decides how the forex is allocated at the CBN rate of N307 per dollar, an avenue they said he uses in settling people in Government who later round trip and sell at market rate of N365 per dollar. This position according to the staff was corroborated by a former Governor of the bank in addition to details already in the knowledge of the Economic and Financial Crimes Commission (EFCC), nothing has been done to date.
The staff specifically mentioned various forex malpractices involving Directors, a retired Deputy Governor in charge of Economic and Policy and Godwin Emefiele himself. Details of some of these malpractices which we have obtained independent of the staff petition will be available in our subsequent report.
Little wonder, the call for the sack of the CBN governor especially as regards the sale of forex to cronies at CBN rate has been on since 2015.
In one of his call for Emefiele’s sack, Peregrino Brimah describes him thus “He is a cabal fraternal banker who has maintained and added several layers of taxation on Nigerians even through the banking system in a ponzi-type scheme: tax to deposit, tax to withdraw, stamp tax, tax per mile and other illegal bank taxes on the masses’ own money, unheard of across the world.”
“The only people the governor has favored are politicians and the cabal whose investments he secures and who he promises unfettered access to CBN rate dollars for their refinery and other private projects while he denies the masses and small businesses any access to same. His policies have been directly implicated in the loss of 1.5 million jobs the past year and the current Nigerian recession.”
Also in 2017, civil society groups protested against the CBN governor with a demand for his resignation after accusing him of manipulating Forex tradings and illegally funding Federal Government budget and short-changing the Money Deposit Bank’s reserve ratio at the expense of the Masses.
“Forex Trading has been illegally turned to an exclusive business of the friends and family of those in power as against the principle of banking which allows for professionalism in trading and ensuring circulation to the business community for import and export of goods and services that will have direct positive impact on the economy and the people, spokesperson of the group, Fasipe Oluyemi said”
“We have again taught that the CBN will allow a level playing ground for all real stakeholders especially business community to access FOREX for trading, but they have aided the government cronies to horde it, and make it very expensive for them to in turn make huge profits upon trading. These are the factors that have made the prices of goods and services in the country to be very high and expensive, most times unaffordable.” “We shudder at the high impunity and knavery at which the CBN has carried on this illegality in this dispensation, playing lip service to the change mantra of Buhari’s government. This is another clear demonstration that the government and the CBN is double mouthed, playing double standards about corruption-free Nigeria.”
Although, the CBN in a statement by the Director, Corporate Communications, Mr Isaac Okorafor, said the allegations were “false and fabricated” and accused the groups of being paid agents of some ”selfish interest groups and enemies of the Nigerian economy,” staff of the bank said manipulations of forex trading and its attendant illegalities are still very much rufe under the management of Godwin Emefiele.
In the third part of this report, other reasons the CBN staff gave in the call for the sack of Godwin Emefiele will be further highlighted. Watch out.