SCANDAL ROCKS FCMB BANK

NEWS:
From CHUKS AKUNNA, Abuja

Asset-stripping scandal rocks FCMB

A huge controversy is brewing over who authorised an Abuja-based real estate firm, Real Time Properties and Development Company, to sell off seven property of the now acquired First Inland Bank (Finbank) for a whopping N4.1 billion.

While Real Time Properties claimed the planned sale was being conducted “on behalf of the landlords,” FCMB screamed that the company might be out to defraud the public.

Following its nationalisation by Central Bank of Nigeria (CBN), First City Monument Bank (FCMB), in February, bought out Finbank for N6 billion, making it the sole owners of the bank’s assets and liabilities.

Documents in the possession Daily Sun suggest that FCMB may have appointed Real Time Properties and Development Company, to sell off seven of the former bank’s property in Abuja and one other in Port Harcourt, Rivers State.

FCMB has, however, denied any links with Real Time Properties and Development Company, saying it never appointed any agents to sell off the property of Finbank.

“True, the assets and liabilities of Finbank have, by virtue of the acquisition, become those of FCMB. However, we have not appointed Real Time Properties or any agent for that matter, to sell off any property. We have a court-appointed AGM on Friday, at which decisions shall be taken on Finbank,” FCMB’s Head of Corporate Affairs, Mr. Ikechukwu Kalu told Daily Sun.    On if FCMB wasn’t worried that fraudsters may have put up its property for sale, Mr. Kalu’s promised the matter would be investigated.

However, in the notice of sale, Real Time Properties stated:”We are pleased to introduce to you the following property available for sale in the FCT and Port Harcourt, on behalf of the landlords, on the following terms and conditions subject to contract”. A breakdown revealed N2 billion as the asking price for two blocks of four-storey office on 4, Gwani Street, Wuse Zone 4, Abuja. The building used to be Finbank’s corporate head office and is being renovated apparently to face-lift ahead of the planned sale.

The right wing of the building has been coated with white paint. Finbank’s banner has been replaced with FCMB’s, which is still partially shrouded. The “landlords,” according to the notice, are seeking N500 million for an uncompleted banking structure on two floors, on a land of about 1,800 square metres on 40, Yakubu Gowon Street, Asokoro, Abuja. The “landlords” demanded N400 million for two units of four-bedroom semi-detached duplex on Plot 30, Gana Street, Maitama, Abuja.

A large warehouse on a fenced land of about 3000 square metres, fenced with gate, in Zone B, Apo Legislative Quarters, Abuja, would be sold for N350 million, the notice said. The “landlords” put N250 million on an uncompleted banking structure on two floors, on a land of about 1,500 square metres, on 4, Herbert Macaulay Way, Abuja, and another N250 million on a banking structure on two floors, fenced with gate on land of about 1,200 square metres, on 141, Abuloma Road, Trans-Amadi, Port Harcourt.

The agents, on behalf of the “landlords” also put a N200 million tag on about 7,000 square metres of fenced land, with three units of one-bedroom guest chalet, Plot 111 Karimo District, and N150 million for a banking structure adjacent Chosen Plaza, Mpape, Abuja. “For joint inspection and final consummation,” the notice advised,  “kindly revert to the undersigned,” one Oke Moses.

Real Time Properties and Development Company, according to the notice, is located in Shekinah Plaza, 1, S. L. Akintola Boulevard, Garki II, Abuja. When contacted on the telephone on why the notice for such an important sale wasn’t advertised in the newspapers, the agent said: “we will consider that.”

It may be recalled that a former President of Nigeria Stock Exchange (NSE), Prof. Ndi Okereke-Onyiuke had led the opposition to CBN’s recent nationalisation and subsequent sale of certain banks, including Finbank.

Okereke-Onyuike had told the House of Representatives’ committee that probed the collapse of the capital market that CBN was wrong to have nationalised the banks, saying such conveyed very dangerous signals to Nigeria’s capital market. She had equally faulted the CBN-ordered sale of some troubled banks, describing the sale as “fraud.” CBN, held the former NSE D-G, ought to have revoked the operating licences of the affected banks and not sell off their assets, the property of the shareholders,  “to strangers.”

…No deal with agents – FCMB

By CHIMA NWOKOJI

When contacted, the banks Group Head, Corporate Communications, Ikechukwu Kalu in company of the Head, Corporate Communications FCMB, Tunde Shofowora said the bank has not commissioned any person or company to sell properties, neither has FCMB any further plans to lay off staff.

“We have not earmarked any assets for selling. We have not commissioned anybody or any company to do evaluation of property before talking about selling any assets for FCMB. We cannot talk of selling assets of Finbank when the mergers and acquisition process is still in process. “We have not commissioned any company called Real Time Properties Development Company to sell any property for us, neither are we in discussion with any agent in relation to sell off Finbank’s properties.

There is nothing whatsoever relating to assets stripping. We have no dealings with Real Time Properties Development Company,” the bank said. At the appropriate time, Kalu clarified, when we would have concluded integrations, then FCMB will know what assets are duplicated or what staff duties are duplicated. “For now, all assets and liabilities remain what they are. If at the end of the merger process, we discover excess assets to be disposed, that decision is ours. That is why legally speaking, you cannot find any FCMB material or logo inside any Finbank office at the moment. We are taking our time.

Again, any profit made from other sources like sale of assets, will be reported in the annual accounts in line with the Central Bank of Nigeria’s full disclosure regime,” he said. Continuing, Shofowora said the question any one alleging assets stripping should be asking is: “what was the purpose of acquiring Finbank, was it to use its assets to open a shoe factory? “We have assured every staff of Finbank that no staff will be demoted. No staff will have a salary cut. You are free to talk to any Finbank staff. We have also insisted on being as open as possible. There is no complication about that, so that everybody can understand what is going on,” said Shofowora. He explained that FCMB had a town hall meeting with Finbank staff all over the geopolitical zones of the country where the bank explained all the process to them.

“We have told the whole world earlier before now, with your media fully represented a few months ago, how many staff we have laid off. It was a bitter pill but we are glad we did it. We communicated to appropriate labour unions and it was widely reported and accepted,” the bank maintained.