N20bn Bailout: Kogi Assembly Extends Ultimatum for Sterling Bank MD
The Kogi Assembly has extended its ultimatum for Sterling Bank Plc. Managing Director, Mr Abubakar Suleiman to appear before it to Dec. 8.
The house announced the extension at plenary on Tuesday, following the failure of Sterling bank MD to appear before it today due to unavailability which Lawmakers actually considered. The extension of the ultimatum was sequel to Kogi lawmakers plans to issue a warrant of arrest against the bank MD today.
Kogi Assembly had summoned Mr Suleiman to appear before it in person for clarification on the N20 billion bailout fund the bank claimed to have sent back to the Central Bank of Nigeria (CBN) after initial claims that the Kogi government deposited it in a fixed deposit account.
Upon resumption of plenary, the Sterling bank MD sent a letter to the assembly, urging it to reschedule his appearance. According to the letter, the managing director is currently attending AFREXIM Trade fair holding in South Africa.
The Speaker, Mr Matthew Kolawole, after reading the letter on the floor of the house, said it was not written on the bank’s letterhead, pointing out that the paper did not carry the logo or name of the bank.
Kolawole, however, said that for equity and fairness, the house had agreed that the bank MD be rescheduled to appear on Dec. 8, in person as no form of representation would be accepted.
Sterling Bank chief had failed to honour the invitation of the house on three occasions he was summoned, resulting in a threat to issue a warrant of arrest on him.
Now, Kogi Speaker has resolved that further failure to appear on the agreed date would compel the house to issue a Warrant of Arrest against Suleiman.
MarketForces Africa recalls that on Nov. 2, Kogi Lawmakers had invited the Sterling bank Chief to clarify the bank position on the bailout fund controversy. The state Commissioner for Finance, Mr Asiwaju Asiru Idris, alongside the state Accountant General, Mr Jibril Momoh and Auditor General, Mr Yakubu Okala appeared before the house on Nov. 2, to offer clarification on the alleged N20 billion bailout fund.
Last week, the Regional Manager of Sterling Bank, Mr Enejo Ibrahim; and Counsel to the Bank, Mr Olukayode Enitan (SAN) were at the assembly to represent the managing director. Enitan stated that the managing director just got the invitation, necessitating a representation by the regional manager.
However, the speaker insisted that the representatives would not be allowed to speak except they tendered a letter from the managing director authorizing them to represent him.
Kolawole gave the bank’s chief executive officer till Nov. 16, to appear before it, saying that any attempt to dishonour the invitation would make the house apply every legal means to coerce appearance.
He pointed out that the claim that the state government fixed the bailout fund meant for payment of salary arrears for civil servants, in an account with the bank had brought embarrassment to the government and people of Kogi.
Kolawole said investigations by the House Committee on Public Accounts, revealed that the allegations were baseless and untrue, adding that the assembly would get to the root of the matter.
The speaker in his ruling upon return to his seat, gave the ultimatum of Tuesday, Nov.16, for the MD, Sterling Bank to present himself before the house for necessary explanations or Executive Order of Arrest would be applied.
It would be recalled that on Aug. 31, Justice Tijani Ringim, a Lagos High Court vacation Judge, froze the Kogi account domiciled in Sterling Bank Plc., following an ex-parte application brought by the EFCC.
The EFCC had alleged that the bailout money, which was meant for payment of salary arrears in the state, was kept in an interest-yielding account with the name of the state as “Kogi State Salary Bailout Account.”. #N20bn Bailout: Kogi Assembly Extends Ultimatum for Sterling Bank MD
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