The Nigeria Deposit Insurance Corporation (NDIC) says it saved 6,000 workers from being dismissed from the defunct Skye Bank, now Polaris, as a result of poor handling of the operations of the bank by its former management.
This was disclosed on Thursday by the Managing Director of the corporation, Alhaji Umaru Ibrahim while speaking at the NDIC Special Day, at the ongoing 40th Kaduna International Trade Fair.
Ibrahim, who was represented by the Head of Communications and Public Affairs of the corporation, Alhaji Muhammad Kudu, said it was on record that the intervention also ensured stability in the banking industry.
He said apart from ensuring that normal operations continued in all the 277 branches of the bank, the intervention also ensured that depositors of the closed bank had unhindered access to their deposits in excess of N949.6 billion as at June 2018.
According to him, the corporation has also taken measures to ensure that all those who contributed to the failure of the bank are prosecuted to serve as deterrent to others.
The managing director, said in February this year, a Federal High Court in Lagos had sentenced the managing director of the failed Integrated Microfinance Bank Plc, Simon Ademola Akinteye, to 32 years imprisonment over frauds that led to the failure of the bank.
“The corporation had also been relentless in its debt recovery efforts particularly the debts owed to banks in liquidation so as to enhance payment of liquidation dividends to depositors whose balances were in excess of the insured limits.
“Also in 2018, a total of N526, 397, 116.26 was recovered in respect of deposit money of banks in liquidation, N51,159,867.97 and N710, 057.83 from primary mortgage banks and micro finance banks respectively.
“The cumulative recovery from debtors of deposit money banks, micro finance banks and primary mortgage banks as at December 31,2018 stood at N29.01 billion, N125.84 million and N290.43 million respectively.
“These efforts were boosted by series of judgments obtained against banks in liquidation and realisation of physical assets of closed banks, apart from the conviction of the MD of the defunct integrated MFB, the Corporation also secured a landmark judgment against the First Bank of Nigeria Plc, to the tune of N556,493,034.16 in favor of depositors of Lead Merchant Bank Limited (in liquidation).
“As the corporation marked it’s 30th anniversary this year, it had been three decades of resilient hard work and continuous innovations in order to achieve our goal of becoming the best Deposit Insurer in the world by the year 2020.
“We may not be there, but the NDIC already has become a reference point in the implementation of the DIS in Africa and beyond.,” Ibrahim said.
The NDIC boss restated commitment of the corporation towards achieving a safe, sound and stable financial system geared towards sustainable economic growth.
On the theme of the fair, ‘Consolidating Interface between Industry and Agriculture for Nigeria’s sustainable development,’ Ibrahim said it would strongly support the federal government’s initiative of unleashing the full potentials of the nations agricultural sector to drive employment generation, robust revenue base and sustainable growth of the economy as captured in the Economic Recovery Growth Plan (ERGP).
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