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Ecobank Comes Under Attacks, Indicted Of Security Fraud, Shady Transactions, Other Irregularities

Ecobank was Incorporated as a public limited liability company on October 7, 1986, Ecobank Nigeria Plc is a crucial attachment of the independent banking group, Ecobank International Incorporated( ETI) headquartered in Lome, Togo, with missions in 36 nations across the African mainland.

The missions of Ecobank Nigeria are supervised and restrained by the Central Bank of Nigeria (CBN) as well as the National Deposit Insurance Corporation (NDIC).

Ecobank international’s excrescency in means, client base, deposits, and branches( especially in its Nigerian attachment) followed a lacing of doubtful accessions of defunct Nigerian banks like All States Trust Bank Plc, Hallmark Bank Plc, African International Bank Plc (AIB), and Oceanic Bank International.

In malignancy of the rapid-fire but erratic expansion of ETI’s footmark in this country, Ecobank is by no means a Nigerian bank.

The bank’s finding company was established in 1985 under a private region action commanded by the Federation of West African Chambers of Commerce and Industry, with the brace of the Economic Community of West African States( ECOWAS).

At the time, the largest shareholder was the ECOWAS Fund for Cooperation, Compensation, and Development, the evolution finance arm of ECOWAS.

It’s no surprise that till the moment Ecobank is associated with everlasting difficulties and ethical expostulations.

The bank was veritably easily agonized from its very morning by a shark intelligence in its strategic seat, accessions, client connections, and commercial cultivation.

This bloodsucker mindset was most apparent in their rabid appetite for zombie banks and commercial carnage.

Especially in Nigeria, Ecobank has been spoiled by several well-plugged commercial governance setbacks.

The bank’s excrescency model concentrated on hunting down and eating original manufacturers, directors, entrepreneurs, and multiservice associations who, as a result of either colorful unlooked-for environmental procurators or political and profitable tragedies, we are unfit to induce sufficient excrescency from their licit operation to do anything other than indulgence or incompletely service their current arrears.

PREAMBLE – The end of a morning Between 2006 and 2011, Ecobank’s Nigerian missions were represented by a mass of unattractive opinions starting with an ETI accession in 2006, of the means and arrears of All States Trust Bank( with 65 branch networks and inhospitable shareholder finances of N48 billion).

The profitable and fiscal Crimes Commission( EFCC) had before enchanted the Chairman of the All States Trust Bank, Chief Ebitimi Banigo, over debts running into billions of naira.

Also acquired in 2006 was Hallmark Bank.

In 2008, ETI acquired and took over the private and public region precipitating arrears of African International Bank( AIB).

In October 2011, ETI acquired Oceanic Bank Plc.

The exclusive share capital of Oceanic Bank was repealed, while its shareholders entered one usual share of $0.025 and $0.428 preference pieces of $0.1032 in ETI, for every 20 held in Oceanic Bank.

On July 30, 2011, Oceanic Bank and Ecobank international Incorporated penetrated into a sale perpetration consensus( TIA), setting out the frame for the Oceanic accession.

The TIA handed that following the accession, ETI would beget its Nigerian attachment, Ecobank Nigeria, to enter into a gambit of the junction with Oceanic under Part XII of the Investment and Securities Act(No. 29) of 2007.

ETI acquired 100 percent of Oceanic Bank.

Following this, the pieces of Oceanic Bank were excluded from the sanctioned list of the Nigerian Stock Exchange, while shareholders in the enlarged Ecobank were to get one share in ETI for every 5.16 Oceanic piece possessed.

The scheme also reflected that at the end of the junction, ETI ‘ll enjoy the merged reality, while the pieces of Ecobank will latterly be excluded from the NSE’s Daily Official List.

A full interrogation of the legitimacy of the purported merger, or compliance with Nigerian regulations (Investment & Securities Act), may be beyond the compass of this report. serve to enunciate, still, that a multifariousness of events since 2011 have contributed to the conquering notion of an unkempt or deficient junction.

RUSSIAN irruption
Ecobank’s character started raveling while it was trying to halt a hovered Russian irruption
How and why did this be?
The rejoinder to this interrogation, or at least a partial rejoinder, comes from an inspection review conducted by Ernst & Young, and a letter was penned by another president of ETI.

In his letter, the other president addressing Nigeria’s legit and nonsupervisory authorities, explains that everything began in 2007, when Renaissance Capital, the Russian investment bank, holding a 24.5 share in ETI’s capital, tried an inimical preemption of the group.

Obviously, not all association ingredients were happy about this, especially the Anglo- Saxon lobby made of Public Investment Corporation of South Africa( PIC), which held at the time 19 of Ecobank, and Nedbank (20 at the time).

The letter states that Arnold Ekpe, other principal administrative bobbies of Ecobank, and PIC, during association meetings, bandied ways to grease Nedbank’s preemption by PIC, a shift which would have allowed the South African pension deposit to take control of 40 of Ecobank. “farther findings have also shown off that the also GCEO, Mr. Arnold Ekpe had private business connections with the snap and that he was involved in a plan for the snap to gain control of NEDBANK thereby creating a situation where the PIC would control a connected 40 share in ETI.

These exposures were made at a Board gathering held on 30th August 2013 by Mr. Sipho Mseleku, a South African manager on the Board, and Dr. Daniel Majtila, the Director defining snap on the Board and are recorded in the twinkles of the gathering, ” the document says.

The same source indicates that Ekpe was latterly designated Chairman of Atlas Mara, an investment company co-founded by Bob Diamond (other managing managers of Barclays Plc), to buy significant pieces of ETI.

In this environment, it was further than egregious that preemption by the Russian bank wasn’t well discerned.

Thus, a protection program, involving a shareholding boost, was conceited to reduce Renaissance Capital’s share in ETI’s shareholding.


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