Economic Confidential, August 20, 2009

DEBTORS

CBN Admits Typo Errors on Debtors, EFCC Insists on Arrest Next Week

As some of the big debtors alleged misrepresentations in the names and figures attributed to them in the recent publication by Central Bank of Nigeria (CBN), the bank has admitted that there were some typographical errors in some of the names just as the Economic and Financial Crimes Commission insists that it would start the arrest and prosecution of the defaulters next week, Wednesday.

The Central Bank said that it noted claims by some individuals on the published list of debtors/defaulters that the figures posted against them are not correct and threatened to go to court. It also noted some typographical errors regarding the titles of some government officials and some companies. It therefore called on the “general public and all concerned should note that the list published is as at 31st May, 2009 and if any of the defaulters/debtors have made any repayments after that date, they should sort it out with the relevant bank.”

The bank particularly admitted errors in some public institutions when it disclosed that the title “Accountant General” under Intercontinental Bank Plc list, should read “Accountant General of Zamfara State” while the name “Delta State Government” under the Oceanic Bank list, should read “Delta Steel Company.”

The bank said it regretted any inconvenience caused as a result of the typographical errors mentioned.

Some customers of the affected banks have accused the Central Bank of Nigeria (CBN) of posting spurious debts against their names. Those that have kicked against the classification of their companies’ debts as “non-performing” included Alhaji Aliko Dangote of Dangote Groups, Jimoh Ibrahim of Global Fleet Industries and Joseph Arumemi-Johnson Rockson Engineering, Femi Otedola, of Zenon and African Petroleum (AP) Plc, Alhaji Alao Arisekola, Obat Oil and Petroleum Ltd and Mobitel.

While others were complaining about wrong spelling of names and negative implications of such disclosures on the economy, Jimoh Ibrahim was very particular on taking legal action if the figure attributed to his firm is not corrected.

Bar. Jimoh Ibrahim who is the Group Chief Executive of the NICON Group of Companies, that include hotels, insurance firms and oil industries threatened to go to court if CBN failed to retract the publication where he was said to have owed Oceanic Bank International Plc N14.782 billion but which he claimed was only N8 billion and that the loan was performing.

Jimoh said the action of the new governor of the CBN, Mr. Sanusi Lamido Sanusi, would have been commended if the figures were correct and questioned “the hurry” of the CBN to make the list public without cross checking with the debtors, a situation that might affect the credibility of the bank.

He displayed a copy of a letter dated 18 May, 2009 which was written to him by the Oceanic Bank  to prove that the outstanding debt was N 8 billion and the loan was performing. The letter titled: RE: OUTSTANDING INDEBTEDNESS reads in full, “We write to acknowledge receipt of value of N 3 billion to date on the outstanding on your facilities with the bank. Subject to getting value for the N 1 billion cheque payment today, May 18 2009, the total outstanding on your facilities will now be N 8 billion. We thank you and look forward to a most mutually beneficial relationship even as it is our hope that other payments necessary to fully extinguish these facilities will follow soon.”

The letter which was signed by  Assistant General Manager, Corporate banking Group, Mr. Robinson Ofomata and Executive Director, Corporate Banking Group, Mr. Oti Ikomi also quoted the five accounts in the group which included Global Fleet Oil and Gas, Global Fleet Industries, Fleet Hotels,

Meanwhile the Chairman of Economic and Financial Crimes Commission, EFCC, has warned that dispute over amounts owed and figures published by the Central Bank of Nigeria would not be taken as an excuse from bank debtors for failure to pay at the expiration of a seven day ultimatum given by the anti-graft agency.

Mrs. Farida Waziri said the Commission was prepared to effect the arrest of defaulters at the expiration of the ultimatum. She said  “We have heard some of the debtors disputing the figures published by CBN. Our position on this is that they have to pay whatever they are claiming they owe first and after that we can sit down and reconcile the accounts. But I can assure you that we will not take any dispute on figures as an excuse from anybody. They don’t have to wait for us to start effecting their arrests before they begin to perform.”

According to her, “if you claim to owe one kobo, bring that first, then we can all sit down and reconcile the difference. Otherwise, we will do exactly what we have promised to do; that is, arrest, prosecution and confiscation of their assets. I will need the cooperation of the concerned persons and not excuses. As you can see, our operatives have been moved to Lagos not for fun but mainly for this purpose”

She said the EFCC would need the support of all stakeholders especially players in the banking sector, the judiciary and the media to achieve its goals adding that “no one can do it alone and that is why you see us working with SSS, CBN,SEC, Police, NDIC and others to recover these huge funds that had been lost due to sharp practices in our banks”.

While reports have indicated that some of the debtors have started to offset their indebtedness other have ran away to other countries including some of the sacked chief executives of the affected banks.  Meanwhile, list of other (more) debtors/defaulters is being compiled by CBN and will be published on an on-going basis.

See the List:

Big Banks' Debtors