NITEL: A Time to Account
By
Banjo Odutola
The drama of NITEL disposal is now reaching a crescendo and it is note worthy to read how intellectual capacity is taking root to corrupt due process. The due process that Nigerians expect in this saga is not intellectual transmutations that have destroyed our economy, society and people but transparency and accountability.
Firstly,
let me deal with the issue of intellectual transmutations by referring the
reader to the contradictory stance of the prolific but bowdlerizing writer,
Reuben Abati, whose stance on issues are often inconsistent at best and at
worst his nescience and exiguous understanding of some issues he writes about
is profoundly embarrassing. Yet, this is the quality of one of our opinion
leaders.
Abati’s
stance on Banking operations in Nigeria in his article before his diatribe on
‘The NITEL 419 scam’ is impressive because he called for the sanitation of
Banking Operations and he cared less for the consequences that befall various
bankers many of whom in my opinion are purloining arrivistes parading
themselves in their marble edifices as bank officials. This type of stance is
commendable because policy makers need opinion leaders like Abati to know what
the country is thinking. But the stance in his ‘The NITEL 419 Scam’ in
which he traduced the government, the Central Bank of Nigeria (CBN) over
International Investor of London Limited (IILL) ill-fated attempt to purchase
NITEL and his diatribe for a larger public interest on behalf of First Bank is
mischievous.
The
mischief is best seen in the contrast between developed economies handling of
a Bank that he claims has patently breached Banking guidelines and larger
public interest argument for which due process must be suborned where First
Bank is concerned. In this matter, I applaud the officials that have taken
decisions of the non-refundable $137 million because our Bankers and
businessmen will now take cue that it is no longer business as usual. Rather
than intervening to save First bank, this is the time for officials to ask
serious questions about breach of Banking Regulations and if First Bank
Officials are to be eased out and punished severely then CBN must bring
forward the day of Nemesis.
There
are ways that CBN can intervene without erosion of depositors’ confidence. A
case of Baring Brothers is an example where the Bank was sold for one pound to
ING and some of its senior officials were banned from working in the Financial
Industry. Anyway, before we ban First Bank officials, it is hoped the CBN will
be bold enough to ensure that the Bank treasury is not emptied and funds
dissipated to associate persons in the guise of loans.
Secondly,
our dispensation calls for transparency and it is reasonable for our people to
expect CBN investigation of First Bank to be fair. The details of CBN breaches
and culpable Bank officials should not be clothed in such secrecy that will
allow them to get away with their wrongful acts. But how much transparency can
one expect in CBN investigation?
This
is where the Obasanjo factor becomes a part of the equation. It is common
knowledge that Baba will smile and dance with you when you are on the right
side of the law but if you transgress common decency or the laws of the land
then you are on your own. Ask Okadigbo. It was reported that Baba even hit the
floor to dance at the then Senate president’s house warming party and barely
24 hours after the owambe dance,
Okadigbo fought a cowardly battle to retain his presidential position in the
senate.
The
point herein is that the officials of any Bank involved in breaching Banking
regulations under a different administration can hope for the invisible hands
of a corrupt leader to salvage their situation. The best hope we have is that
in a government led by Baba, such hope of these purloining officials is
forlorn and they know it. It is also worthy to resist any furtive attempt to
transmogrify the outcome of any investigation. It is about time that people,
whatever their station realise that it is no longer business as usual in
Nigeria.
As
a nation we need to emerge from the ‘settlement’ dispensation of Babangida
and Abacha’s pernicious malversation that were dissimulated in guise of
military governance.
Thirdly,
it is argued that the purchase of NITEL by some heavyweights in the south is
good for the nation. I am at a loss to the logic of this type of argument.
Simply, it is nothing but a flummery and to deliberate upon it, is beneath
contempt. The facts are simple and clear. The facts are: A group of rich men
amongst them is reported a Yoruba traditional ruler; it is somewhat
unfathomable that such grandiose person is involved in the murky business of
an imperfect loan to buy a national asset; arranged a loan with a Bank and it
is now clear that these rich men were badly advised in their venture.
So,
what are the likely consequences of the non-refundable $137 million? The
fallout will affect Banks that syndicated a loan of this colossal amount. If
that is the case, the CBN should embark on a clear out of management teams in
these Banks and penalise the Bank officials to the extent of bankruptcy and
sanctioning them from ever working in financial institutions.
Arguably,
it may be submitted that a draconian measure is not meet for this type of
breach. I beg to differ because there is a need to set precedents in our
nascent democracy and it is valid to expect that if the handling of the Bank
loan breached regulations then the laws of the land must undeniably be brought
to bear on erring officials.
But
what ought to happen to the facilitators of the loan? If the CBN arranges the
takeover of the principal Bank involved, then whatever collateral or
guarantees are given to the Bank must be called up as a fulfilment of the
borrowers’ obligations.
Suffice
my vatic propositions in this matter. It should be noted that some miscreants
are bound to use this unfortunate situation to accuse the government of
marginalizing the Ijebus and Igbos instead of scrutinising the bent manner in
which the rich amass their wealth.
Lastly,
it is argued that the First Bank $30 million dollars loan should be refunded
by the government as the implications not to return the money will be dire for
investors to come to Nigeria. This type of argument regardless of government
implication in the bid is absolute balderdash. Whichever way the Bank
propounds its argument, it needs to be established if the down payment was
understood to be non-refundable before the Bank set up a facility for its
clients.
My
submission is that all concerned in this saga understood their obligations
very well and there is no doubt that the requirements placed particularly on
the Bank are also understood by its officials. As the Nigerian factor was
allowed to becloud responsible judgments in this time of Baba’s
administration (Obasanjo), where kudos are awarded to officials who are
exemplars of the Nigeria we are all trying to build. We can now see that there
are government functionaries who are prepared to challenge wrongdoings. These
are men and women who have not left the country for comfortable lives in other
parts of the world but they remain in Nigeria to build a society that they
have avowed for as long as good governance is exemplified from the top then
they will be protected when they challenge wrongdoings.
Somewhat
I hope these government officials are encouraged in their pursuits.
Banjo Odutola
The writer is a solicitor of the Supreme Court, England and Wales and a Lawyer at a Firm of Solicitors in London, England.