The Nigeria Deposit Insurance Corporation, NDIC, said Wednesday that it has engaged relevant government agencies to investigate and prosecute erstwhile directors and management of the defunct Skye Bank Plc.
The Managing Director of the NDIC, Alhaji Umaru Ibrahim, who stated this in a keynote address he delivered at the opening session of a Sensitization Seminar for Court of Appeal Justices, said the essence of the investigation was to determine the culpability or otherwise of the Directors in the failure of the bank.
He maintained that those found culpable would be prosecuted to serve as deterrent to others.
Besides, the NDIC boss revealed how the Corporation intervened to ensure that over 6000 employees of the failed Skye Bank were not rendered jobless.
He said: “It is pertinent to note that legal issues involving the operation of the Deposit Insurance system are, insisted critical to the achievement of the Corporation’s statutory mandate of depositor protection, supervision, distress resolution and liquidation of failed insured institutions.
“Accordingly, I am truly glad to inform you that the organisation and incorporation of a bridge bank; Polaris Bank Limited to take over the assets and liabilities of the defunct Skye Bank Plc records yet another milestone in the annals of successful bank failure resolution measures in Deposit Insurance practice in Nigeria.
“Therefore, as a result of NDIC and CBN’s intervention, Polaris bank successfully acquired Skye bank under the bridge bank mechanism.
“Some of the positive results of the bridge bank option is that Polaris bank currently operates in the 300 branches of the defunct Skye bank Plc premises all over the country, with no distruption of banking transactions; this has saved over 6,000 employees of the failed Skye bank from being out of jobs.
“In the same vein, depositors of the defunct Skye Bank Plc are guaranteed access to their total deposits, while other creditors of the failed Skye Bank plc whose liabilities are assumed by Polaris Bank Limited, also have unfettered access to their funds.
“May I also use this opportunity to inform this gathering that the erstehwile Directors and Management of Skye bank Plc who contributed to the failure of the failed Skye bank are being investitigated by relevant government agencies to determine their culpability or otherwise in the failure of the bank, and would be prosecuted to serve as deterrent to others.
“I wish to assure our stakeholders, including the Judiciary that the NDIC would not relent in its collaboration efforts with the CBN and other agencies in the Financial Sector as it would help in minimizing the occurrence of unlawful dealings, weak internal control and overall non-compliance to prudential guidelines”, he added.
In his welcome address, Justice Zainab Bulkachuwa, the Court of Appeal President, said the essence of the yearly seminar was to educate Justices of the court on workings of the Financial Services Industry and the Deposit Insurance System, DIS.
Justice Bulkachuwa noted that protection of bank deposits would ensure confidence in the banking system, thereby promoting financial system stability and economic growth.
“My lords for us to discharge this onerous task placed on us, an in-depth knowledge of the workings and innovations in the financial system is needed, which underscores the importance of this yearly seminarm,” Justice Bulkachuwa added
