Daud Olatunji
The Nigeria Deposit Insurance Corporation (NDIC), in collaboration with various law enforcement agencies, has initiated an investigation into the directors, managers, and staff of the defunct Heritage Bank.
PLATFORM TIMES reports that this move follows the bank’s liquidation over a month ago.
The Managing Director of NDIC, Bello Hassan, disclosed this at the 2024 capacity building workshop for law enforcement agencies held in Lagos over the weekend.
PLATFORM TIMES further reports that the workshop focused on ‘Inter-Agency Collaboration in the Fight Against Financial Malpractices in Banks and Other Financial Institutions in Nigeria.’
Represented by NDIC’s Director of Corporate Communications, Bashir Nuhu, Hassan said the ongoing collaborative efforts to address financial malpractices.
“There are currently 14 prosecution cases in various courts, 18 ongoing investigations with the Financial Malpractices Investigation Unit (FMIU), eight with the Economic and Financial Crimes Commission (EFCC), and nine concluded investigations awaiting advice and prosecution from the Federal Ministry of Justice,” he said.
The Central Bank of Nigeria (CBN) recently revoked Heritage Bank’s license, prompting the need to investigate its former officials.
Hassan emphasised the importance of holding those responsible for the bank’s collapse accountable.
“The Corporation, as a key participant in the financial safety-net, has over the years taken the fight against insider abuses and financial malpractices in banks very seriously,” he stated.
Hassan also stressed the significance of a stable banking environment for economic development.
He said “a safe and sound banking environment is an essential ingredient of financial system stability, which of course is the bedrock for economic development of every nation.”
Acknowledging the challenges in investigating and prosecuting financial malpractices and bank fraud cases, Hassan urged law enforcement agencies to persist in their efforts.
“Be rest assured of our unflinching support at all times,” he assured.
The workshop’s theme, ‘Effective Collaboration as a Strategy in the Fight Against Insider Abuses and Financial Malpractices in Banks and Other Financial Institutions in Nigeria,’ reiterates NDIC’s commitment to combating insider abuses and financial malpractices, which are major causes of bank failures.
Hassan warned that if left unaddressed, these issues could erode public confidence in the banking system.
“Consequently, and in line with Article 12 of the Core Principles of Effective Deposit Insurance, which mandates every Deposit Insurer to establish mechanisms to hold parties accountable for the failure of their bank or financial institution, we remain steadfast in our resolve,” he concluded.
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