Skye Bank Collapsed As A Result Of Engaging In Unethical Banking Practices, Falsified Accounting
NDIC said its risk assessment and forensic investigation reports revealed that the former management of the defunct bank were responsible for the failure of the bank by engaging in insider abuse, poor corporate governance and banking malpractices.
A statement by Mr. Mohammed Kudu Ibrahim, Head, NDIC Communication and Public Affairs, yesterday, said the Managing Director/Chief Executive of NDIC, Alhaji Umaru Ibrahim, made the disclosure at the opening ceremony of the corporation’s 2018 Sensitization seminar for Federal High Court Judges in Abuja.
The statement also quoted the MD as having said that “the reports identified various malpractices such as fraudulent, false accounting, manipulation of accounting records to present false profits and ratios, unlawful loan and credit facilities, non-disclosure of directors’ interests and lending beyond the single obligor limit.”
The statement also added that the NDIC and the Central Bank of Nigeria (CBN) were monitoring the ongoing investigations of law enforcement agencies instituted against the directors and management of the failed Skye Bank Plc to determine their culpability in the failure of the bank.
The NDIC boss noted that the corporation’s implementation of the bridge bank resolution option that established Polaris Bank Ltd that assumed the assets and liabilities of the defunct Skye Bank Plc, resulted in depositors’ unhindered access to their funds, the continuity of the operations of about 300 branches and the preservation of over 6,000 jobs.