The Special Investigator appointed by President Bola Tinubu to probe the Central Bank of Nigeria (CBN), Jim Obazee, has summoned the Chairman of Titan Trust Bank (TTB), Tunde Lemo, and two other shareholders of the bank over the controversial acquisition of Union Bank of Nigeria, Plc.
This comes after Lemo, a former deputy governor of the CBN, faulted the investigator’s findings on the issue.
Recall that Tinubu had, on June 9, 2023, suspended former governor of the CBN, Godwin Emefiele, and thereafter named the Chief Executive Officer of the Financial Reporting Council of Nigeria, Jim Obazee, as the Special Investigator of the CBN.
In a report submitted to the President at the end of the probe, Obazee allegedly said Emefiele used ‘ill-gotten wealth’ to establish TTB and subsequently acquired Union Bank and Keystone Bank through his proxies. Also, the Special Investigator recommended that the banks be forfeited to the Federal Government.
However, reacting, Lemo insisted that his bank followed due process and met all regulatory requirements in its acquisition of one of the oldest banks and iconic brands in Nigeria.
According to him: “The core shareholders and the banks will respond appropriately, and the establishment of Titan Trust Bank and subsequent acquisition of Union Bank were transparent and duly verified by the relevant regulatory bodies.
“Due process was followed in the establishment of Titan Trust Bank; and every process that led to the acquisition of Union Bank was verified by the CBN, SEC and other regulators. The core shareholders will respond to the specific allegations against them”, he stated.
Lemo warned that the publication of unverified information on banks could have adverse effects on the banking industry. “I sincerely recommend caution in the publication of unverified information about these financial institutions as they are both deposit-taking institutions. The good news is that the banks are healthy and stable”, he added.
The Communications Department of TTB, in a more detailed statement also on Sunday, said the establishment of the bank and its acquisition of the larger Union Bank complied with Nigerian laws.
Responding to Lemo’s defence in a December 24 letter, letter, which was signed by the Head of Operations, Office of the Special Investigator, titled: “Re: CBN Investigation Activities – Invitation For a Follow-up Meeting With The Special Investigator”, said Obazee has not heard from the two shareholders or received the requested documents from them, the Special Investigator asked Lemo and the two major shareholders in the bank to appear before his team on Thursday.
Meanwhile, it is unclear whether without a court ruling, the Special Investigator’s Office has the powers to make investors lose their shareholding should they fail to attend the meeting for whatsoever reason.
