Heritage Bank’s directors may be investigated, NDIC tells law enforcement agencies
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Nigeria Deposit Insurance Corporation NDIC
Heritage Bank’s directors may be investigated, NDIC tells law enforcement agencies
Nike Popoola
Law enforcement agencies may be called upon to investigate some of the directors, managers and officers of failed Heritage Bank.
The Managing Director/ Chief Executive Officer, Nigeria Deposit Insurance Corporation, Mr Bello Hassan, disclosed this in his keynote address, at the capacity building workshop for law enforcement agencies in Lagos on Thursday.
In June, the Central Bank of Nigeria revoked the licence of Heritage Bank.
In his speech obtained by Dailyeconomy, he said, “Through your collaborative efforts, I am aware that 14 prosecution cases are on-going at various courts, 18 on-going investigation with FMIU, eight with EFCC and nine concluded investigations with Federal Ministry of Justice foradvice and prosecution.
“This is an indication that we are on the right course. As you are all aware, the Central Bank of Nigeria recently revoked banking licence of Heritage Bank Plc which may require you to be called upon to investigate some of the directors, managers and officers of this failed insured Institution with a view to bring to book those found culpable in the collapse of this institution.
“Let me say at this juncture that we are not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases but wish to urge you not to relent in your efforts and be rest assured of our unflinching support at all times.”
He said the theme for this year,’s workshop, ‘Effective collaboration as a strategy in the fight against insider abuses and financial malpractices in Banks and Other Financial Institutions in Nigeria’, has been carefully crafted to re-echo its earlier resolve at its previous workshops to unite in the fight occassined by the menance of insider abuses and financial malpractices which is a major cause of bank failure, and if not tackled is capable of eroding public confidence in our banking system.
“There is no gainsaying that, this collaboration has yielded and is still yielding results particularly in the area of investigation and prosecution,” he noted.
In line with similar initiatives by the Corporation, he noted that the workshop aims to compliment the efforts of the Inter-Agency Task Force on the Implementation of Failed Banks Act.
The Corporation, while bearing in mind the positive impact of such collaboration, he added, will continue to strive at enhancing the synergy between all in the area of law enforcement relating to investigation and prosecution of financial malpractices.
He also said that, “Change is the only constant thing in life. Most changes in human endeavours come through developments in sciences, technology or innovation. As the banking system is rapidly evolving with new innovations, it is clear that a new phase of financial technology driven economy is currently reshaping the global financial services space.
“With this development, the criminally minded users of the banking system including the nototrious ‘cyber criminals’ are busy perfecting their misplaced skills and that is why workshops like this are necessary to enable law enforcement officers seek to understand, accept and adapt to the dynamic operating environment.”
He said the law enforcement officers must aquaint themselves with basic knowledge of the types of fraud prevalent in our banks which includes ATM card related frauds, fraudulent transfer/withdrawals, Internet banking fraud, lodgement of stolen warrants, unauthorised credits, outright cash theft, presentation of forged/stolen cheques, suppression of custmers deposits, and money laundering/terrorism financing, and of course Cyber crime which has gain notoriety in recent times.
He said, “We are quite aware of the efforts and measures put in place by the regulatory/supervisory agencies to curb the activities of fraudsters in the system, and it is our firm belief that the efforts are yielding positive results.
“The Authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their internal control processes through strong risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system.”
According to him, the above underscores the fact that banks and banking operations are becoming more vulnerable. The advancements in information technology that opens new possibilities and vistas in banking operations has equally exposed the banking subsector to emerging threats, he noted.
The MD said this situation increases the burden on the regulators and supervisors to enhance their operational capacities. It has also heightened the need for more collaboration between Agencies involved in the fight against banking malpractices.
He said, “This workshop is therefore among the steps taken to provide a platform for the Agencies concerned to sharpen their skills, share ideas and be well-equipped to face the challenges. We recognize that, for the Corporation to achieve its mandate and objectives in a more efficient and effective manner, and for the banking system to thrive on the gains of a stable financial system, we must all rise up to the challenge of bringing to book those who might have contributed to the failure of their banks.”