The fortunes of the once bubbling Heritage Bank have continued to sink deeper and deeper, gradually moving from a state of comatose to a complete death situation with customers’ deposits on the line if nothing is done immediately by the Central Bank of Nigeria (CBN) to salvage the situation, 234News reports.
Founded with a unique philosophy to create, preserve and transfer wealth to its customers, today, the reverse is the case as the lender has continued to create, preserve and transfer anguish, pain and poverty to its depositors nationwide.
The bank was established in 2012 and began operations with a sweet story of hard work and determination emerging from a business combination of Heritage Banking Company Limited (HBCL) and Enterprise Bank Limited (EBL) after the acquisition of Societe Generale of Nigeria’s (SGBN) license by IEI Investment Ltd from the Central Bank of Nigeria (CBN). IEI Investment Limited is owned by Mr. Ifie Sekibo, the pioneer managing director cum chief executive officer of the bank.
board members are entangled a boardroom tussle for the soul of the lender, compounding the bank’s many challenges.
Another report by an online newspaper suggested that the bank’s head of IT had absconded with a whopping N49 billion of depositors’ funds without trace. Although the lender had in a statement dismissed the news as “wrong and defamatory,” our investigations revealed that the situation in the bank has degenerated as some of its customers informed 234News that they have been unable to access their funds.
Fresh findings by 234News show that the bank’s bankruptcy issues, and inability to meet obligations to depositors have worsened and grown from bad to worse since Mr. George-Taylor assumed office as the bank’s head honcho in September 2022.
A visit by our correspondents to most of the bank’s branches in Lagos, Abuja, Ogun, Port Harcourt, Enugu and Benin City, shows that the entire system and activities of the bank has been completely shut down.
“Do you know that it’s so bad that they could not pay me a paltry sum of N50, 000 at the counter. I have been to branches on Victoria Island, Marina, Idumota, they said they don’t have cash to pay. I even asked my staff who lives on the Mainland to check their branches on Allen Avenue and at Adeniyi Jones, it’s the same story of no cash. My business is crumbling because I couldn’t access my funds in the bank. Their ATM machines have been shut down for months. Is it not time for the CBN to take over the bank and give us our money?” a frustrated customer of the bank, identified as Dabiri Adekunle told our correspondent during a visit to the bank’s branch located at Plot 115, Adeola Odeku Street, Victoria Island Lagos.
Some of the affected customers have, however, taken their pains to the social media even as the CBN keeps mute over the situation.
The bank is now a ticking time bomb waiting to explode.
Some depositors took the battle to the Facebook page of the bank, https://web.facebook.com/HeritageBankPlc to narrate their ordeal.
See below:
Experts accuse Emefiele of politics, ask new CBN chief take immediate action
Meanwhile, financial analysts and stakeholders have tackled the CBN under the suspended governor, Mr. Godwin Emefiele for refusing to take action over the distressed state of the bank.
Some of the analysts who spoke to our source accused Emefiele of playing politics at the expense of depositors’ sweat in the bank despite seeing the risk and not wielding its hammer on the bank despite its troubled and distressed state.
They however urged the new CBN chief to take immediate action by nationalizing the bank like others in the past to save it from complete collapse even as the lender crosses the redline.
Mr Henry Effiong, an economic analyst, told our source that the CBN needed to take a closer look, considering that the bank is not listed on the capital market which would have enabled public scrutiny.
“I believe Heritage Bank is getting away with its underperformance because it is not listed on the capital market and not open to public scrutiny. The CBN needs to set up its oversight functions over these banks, especially those not listed on the exchange,” he asserted. But from what we can see, Heritage Bank is in dire need of re-capitalization and if the owners cannot step up on its task, the apex bank should rise to its responsibility by withdrawing its license and resurrecting the institution from complete collapse.
“I think the suspended governor of the CBN, Godwin Emefiele has some questions to answer about the state of Heritage Bank. He might have been involved in some kind of politics because why should he leave to degenerate to this state and pretend that all is well?
“The new Acting Governor of the CBN should immediately set up a committee to review the state of Heritage Bank and if necessary, revoke its license and restructure the bank to stay afloat,”
Making a similar case, Mr. Kayode Olorunfemi, a capital market expert noted that the quality of services Nigerian banks offer their customers are nothing to be desired, especially those not listed on the stock market.
“The major culprits are banks that are not listed on the stock exchange like Heritage Bank,” he said.
He explained further that, “when a bank’s leadership and corporate governance policies are zero, it will surely fail. This is the story of Heritage Bank.
“I think so many things are wrong with the bank and surprisingly, the CBN has feigned ignorance. The CBN needs to look into these banks to protect depositor’s funds, especially at this time that the economy is seriously challenged.
“It must take seriously the series of customers’ complaints against Heritage Bank and other banks that are not on the stock market.”
“We cannot afford to witness another drama in the banking sector like the 2009 crisis. It’s obvious Heritage Bank has failed the stress test,” he concluded.
