Business
Group demands probe of GTB, protests to NASS over alleged fraud, financial irregularities
Protest on Tuesday rocked the National Assembly in Abuja demanding for probe of Guaranty Trust Bank over alleged fraud and financial irregularities that tended to constitute financial risk to bank customers.
The protest which was coordinated by GICN was meant to persuade, the national legislative houses, the Economic and Financial Crimes Commission, EFCC, the Independent Corrupt Practices and other related Offences Commission, ICPC and Security Agencies to probe activities of Guaranty Trust Bank.
Addressing protesters in Abuja, Comrade Adebayo Lion Ogorry, Director of Publicity and Mobilization of GICN, said, GTB has been indicted in shoddy financial deals involving in Deposit Money Banks, DMB which was reflected report submitted to President Bola Tinubu by Jim Obazee.
He said: “Recall that on Thursday, 3rd October, 2024 we addressed the whole world about the massive corruption and rot ongoing in Guaranty Trust Bank Limited (GTB).
“Today, we have gathered again to bring you up to speed with the latest discoveries by our team of investigators concerning the Bank, which before now had been considered by unsuspecting customers/investors to be healthy.
“As it is, our Private Investigation Report which have been submitted to the relevant agencies both in Nigeria and abroad shows that GTB under the leadership of Segun Julius Agbaje, is involved in; Unsolicited Accounts Opening, Declaration of Fictitious Profits, Round-tripping, Money Laundering, Terrorism Financing and Use of customers/investors’ funds to pay penalties in the United Kingdom.
“We have equally uncovered that GTB that one Mr. E complained to the Financial Ombudsman Service in the UK that GTB did not protect him from losing money to a scam. The said Mr. E stated that in March 2023 he made a payment from his GTB account due to a scam.
“He subsequently realized the scam and got in touch with the Bank, which later recovered part of the money from the recipient account held with another bank.
“Ultimately, GTB did not reimburse Mr. E’s remaining loss. Certain information was requested from GTB to clarify whether it acted reasonably in dealing with Mr. E at that time, but GTB refused to respond.
“Whilst handing down a well-considered decision, Ombudsman Neil Bridge held that good industry practice demands that GTB ought reasonably to have been on the lookout for payments that were out of character to the extent that they might have indicated a fraud risk.
“Accordingly, GTB was directed to refund the balance to Mr. E together with 8% simple interest per year from the date of payment to the date of settlement.
“Back home in Nigeria, GTB featured prominently among the Deposit Money Banks (DMBs) indicted in the Report of the Special Investigation on Central Bank of Nigeria (CBN) and Related Entities (Chargeable Offences) which was submitted by Jim Obazee and his team to President Bola Ahmed Tinubu on 22 December, 2023.
“Part of the said Report indicted GTB for
unlawfully diverting funds being percentage of the total disbursements paid to it for participating in the Nigerian Electricity Market Stabilization Facility (NEMSF).
“The fees were paid to the Banks in the ratio of their contributions to the NEMSF disbursement, according to External Auditor’s Notes to the Financial Statement of NESI Stabilization Strategy Limited.
“We have received complaints from many Nigerians that GTB has been trapping and diverting foreign currencies sent from their Intermediary Banks in Germany, UK, Switzerland and Ghana.
“In most cases, GTB forms a syndicate that would threaten the recipients of such funds that the anti-graft agencies have flagged same as proceeds of Money Laundering or Internet Fraud, even when that is not the truth.
“This unholy practice has caused so much losses for investors who tried to come back home and develop the country with their hard earned money.
“We have spelt out in our Private Investigation Report the various infractions and unwholesome activities committed by Guaranty Trust Bank Limited.
“We hereby demand that the EFCC, National Assembly, CBN, NFIU and other regulatory authorities should take immediate action against GTB in the overall interest of their teeming customers and investors.
“In the event that the relevant regulatory agencies fail, neglect or refuse to perform their duties in line with laid down laws, we shall not hesitate to file Mandamus Proceedings at the Federal High Court of Nigeria with a view to compelling them to do the needful. Meanwhile, we urge the Media not to relent in supporting us in this noble journey as we continue.
“GICN stands in unwavering solidarity with Precious Eze, Olawale Rotimi, Rowland Olonishu and Seun Odunlami who are bloggers recently remanded in Ikoyi Prison by Justice Ayokunle Faji of the Federal High Court in Lagos State on the prompting of Segun Julius Agbaje.
“We submit that the two count charges of Cyberstalking and Disseminating False Information filed against them are baseless. The only reason for their ordeal is that they are courageous enough to fight against Guaranty Trust Bank’s alleged corruption.
“We condemn the attempt by Segun Julius Agbaje to silence the Civil Society and Media from speaking the truth. Let him know that we at GICN, we are not cowards and will never be deterred by the threats of legal action.
“The fight against corruption is our collective responsibility and for us, it is no retreat, no surrender.”