NDIC to Probe Directors of Failed Banks for fraud, Malpractices

The Nigeria Deposit Insurance Corporation has disclosed plans to probe directors of some failed banks in the country.

The Managing Director, NDIC, Mr Bello Hassan, said this during a capacity building workshop for law enforcement agencies with the theme, ‘Effective collaboration in the fight against fraud and financial malpractices in banks and other financial institutions in Nigeria’, in Lagos on Thursday.

The managing director, who was represented by the Head, Legal Department, NDIC, Mr Henry Fomah, said, “Through your collaborative efforts, I am aware that 12 prosecution cases are on-going at various courts, 25 on-going investigations with FMIU, 11 with EFCC and five concluded investigations with Federal Ministry of Justice for advice and prosecution.

“This is an indication that we are on the right course. As you are all aware, the Central Bank of Nigeria recently revoked banking licences of 183 Microfinance Banks and Primary Mortgage Banks which may require you to be called upon to investigate some of the directors and officers of these institutions with a view to bring to book those found culpable in the collapse of these institutions.”

Participants at the workshop organised by the NDIC included representatives from the Nigerian Financial Intelligence Unit, CBN, Nigerian Police, Economic and Financial Crimes Commission, Director of Public Prosecution of Federation among others.

While noting that banks were becoming more vulnerable to fraudsters, he said the situation increased the burden on regulators and supervisors to enhance their operational capacities.

“It has also heightened the need for more collaboration between agencies involved in the fight against banking malpractices,” he said.