The former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, is facing charges of fraud and money laundering for allegedly using proxies to acquire two banks with ill-gotten wealth.
According to a report by the special investigator, Jim Obazee, Emefiele used Titan Trust Bank Limited (TTB) and Keystone Bank to siphon billions of naira from the CBN and other government agencies. The report, which was submitted to President Bola Tinubu on Wednesday, also accused Emefiele of illegally depositing public funds in hundreds of bank accounts in foreign countries without authorization.
How Emefiele Bought Union Bank with Titan Trust Bank
The report revealed that Emefiele used TTB, a bank he set up with his cronies, to buy 94.05% of the shares of Union Bank of Nigeria (UBN) in 2022. The acquisition was funded by a combination of debt and equity from two Dubai-based companies, Luxis International DMCC and Magna International DMCC, which are owned by Vink Corporation Middle East FZC.
It stated that Vink Corporation is controlled by Cornelis Vink, a mysterious shareholder who gave interest-free loans to the two Dubai companies and TTB.
According to a report by Punch, the special investigator alleged that Vink was a proxy for Emefiele, who used his influence as the CBN governor to approve the deal without due diligence.
It was also stated that the two Dubai companies have no physical presence in the UAE and are not registered with the relevant authorities, which contravenes the Banks and Other Financial Institutions Act, 2020. The special investigator requested Vink to submit proof of funds, bank statements, and the names of the shareholders who gave him interest-free loans, but he failed to do so.
The report also exposed how Emefiele used another proxy, Sigma Golf Nigeria Limited, to buy Keystone Bank in 2021. Sigma Golf, which is owned by one Andrew Ojei, paid N25 billion to acquire 100% of the shares of Keystone Bank from the Asset Management Corporation of Nigeria (AMCON). However, it found no evidence of payment or transfer of funds from Sigma Golf to AMCON.
How Emefiele stashed public funds in foreign accounts
Emefiele illegally lodged billions of naira in public funds in no fewer than 593 bank accounts in the United States, United Kingdom, and China without the approval of the CBN Board of Directors and the CBN Investment Committee.
The report stated that Emefiele lodged £543,482,213 in fixed deposits in UK banks alone without authorization. He used his email address to communicate with foreign banks and transfer funds without proper documentation or accountability.
Emefiele’s trial and reaction
Emefiele, who served as the CBN governor from 2014 to 2023, is currently in the Kuje Custodial Centre, where he is being prosecuted for N1.2 billion procurement fraud. He has pleaded not guilty to the charges and has denied any wrongdoing in the bank acquisition scandal.
He has also accused the special investigator of being biased and motivated by political interests. However, the Federal Government has vowed to pursue the case and recover the looted funds. The government has also expressed its commitment to reform the banking sector and ensure transparency and accountability.
Hope for Nigeria’s economy
The bank acquisition scandal has shocked many Nigerians and raised questions about the integrity and competence of the country’s financial regulators.
However, some experts have expressed optimism that the scandal could be an opportunity for Nigeria to address the challenges facing its economy and banking sector.
They have also urged the government to strengthen the oversight and supervision of the banks and other financial institutions, as well as to improve the governance and management of the CBN and other agencies.
