SunTrust Bank Limited, one of the newest entrants into Nigeria’s financial sector, is said to be battling a boardroom crisis amid an ongoing probe by the Economic and Financial Crimes Commission (EFCC).
Recall that the anti-graft agency had arraigned the bank’s Chief Executive Officer, Halima Buba, and its Executive Director and Chief Compliance Officer, Innocent Mbagwu, over allegations of money laundering involving $12 million involving busine3sswoman, Aisha Achimugu.
The two bank executives are currently facing a six-count charge bordering on alleged unlawful cash transactions and money laundering.
This time, insiders alleged that the crisis rocking the bank follows the resignation of a long-serving non-executive director, Arho Akpe.
There are also reports that six senior management officials have submitted their resignation letters, raising concerns over corporate governance and ethical standards at the financial institution.
The development has reportedly exposed tensions within the bank’s board and management, with allegations surrounding financial transactions, ownership structure, internal disagreements and the institution’s financial position raising questions among stakeholders.
Akpe’s resignation, said to have occurred last week, is believed to have added to the uncertainty surrounding the bank. The reported departure plans of six senior executives have further intensified concerns about the extent of the disagreements within the institution.
Sources familiar with the situation claim that the board has yet to formally accept the resignation letters. They also alleged that the board chairman, Olanrewaju Shittu, and another influential director, Mohammed Barde, have been attempting to persuade the affected executives to reconsider their decisions.
However, SunTrust Bank has not publicly confirmed the reported resignations or provided an official explanation for Akpe’s departure.
At the heart of the reported disagreements are allegations concerning Barde’s influence over the bank, his alleged shareholding interests and questions about how the institution raised funds to meet its recapitalisation requirements.
Sources within the bank claim that Barde controls approximately 70 per cent of its equity, either directly or through shareholders allegedly acting on his behalf.
The reported concentration of ownership has become a source of concern among some stakeholders, particularly over the extent of influence an individual shareholder may exercise over major corporate decisions.
Chinonso Atuegwu, head, Branding and Corporate Communication, SunTrust Bank did not respond to TheWitness enquiries as at press time.
Source: First Weekly