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Heritage Bank: Shareholders Push For MD, EDs’ Probe

Some members of the minority shareholders community have called for a probe of the management and directors of the failed Heritage Bank.

The call was made in chats with The PUNCH following the revocation of the licence of the bank by the Central Bank of Nigeria.

In announcing the licence revocation, CBN said that it was with immediate effect, saying “This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The board and management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the license the next necessary step.”

The apex bank then appointed the Nigeria Deposit Insurance Corporation as the liquidator of Heritage Bank in line with Section 12 (2) of BOFIA, 2020.

The National Coordinator of Progressive Shareholders Association, Boniface Okezie, told The PUNCH that probing the bank managers would boost confidence in the sector.

He said, “CBN is also part of the problem in the system, if the bank had been insolvent over the years and they had been living under the mercy of CBN, which should have taken action. In all this, what is the role of AMCON? They should have taken over the bank after all, the bank was also paying a levy to AMCON. Instead, CBN has directed NDIC to take over for liquidation. Is that the way to go?

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