| The Nigerian Deposit Insurance Corporation (NDIC) has accused Inspector General of Police Mr. Mike Okiro of contributing to the collapse of Lead Bank because of the failure of a company linked to him to defray a loan of N162 million taken from the bank between 2000 and 2001. NDIC on July 20, through its solicitor Okunade Olorundare, wrote to the police boss, asking him to settle the debt or risk court action. Okiro retires tomorrow, and it could not be confirmed last night if he had responded to the NDIC letter. Okiro could not be reached by telephone for comments last night, as his phone was not available. A text message sent to him by one of our reporters was not replied to up till the time of going to press. But Police Force Public Relations Officer Mr. Emmanuel Ojukwu denied the allegations against the IG, saying the NDIC was only trying to hit back at him and smear his career because the police had recently charged to court the corporation’s Managing Director Ganiyu Ogunlewe for alleged fraudulent deals with the recovered funds of Fortune Bank (in liquidation). Records from the books of the failed Lead Bank, according to an NDIC document, show that even though the company Hekiro Nigeria Limited was registered on January 25, 1989 under a the name of Madam Bassey Okiro, one of the signatures used to collect loans from the failed bank was that of the IGP. The NDIC document titled ‘Indebtedness of Hekiro Nigeria Limited (family business of Mr. Mike Okiro) to Lead Bank’ said the signature on Okiro’s International Passport of Mr. Mike Okiro with number A0696925 issued on October 19, 2000 is similar to the one used by Bessy Okiro. NDIC records show that when the Lead Bank’s licence was revoked in January 2006, Hekiro’s total debt to the bank stood at N166.597 million. The accusations against Okiro are coming a few weeks after the Senate named a number of prominent Nigerians as being behind the collapse of many banks through abuse of insider credits. |
 | « on: July 23, 2009, 09:03 AM » |
The Nigeria Deposit Insurance Corporation (NDIC) has accused the Inspector-General of Police, Mr Mike Okiro, of contributing to the liquidation of Lead Bank Ltd.
NDIC alleged that Okiro contributed to the bank’s insolvency by failing to repay credits of more than N166 million extended to him between 2000 and 2001.
The corporation alleged that Okiro secured the loan to finance a pipeline laying contract that he won from Nigeria Agip Oil Company (NAOC), adding that he used his family business enterprise, Hekiro Nigeria Ltd, to obtain the loans.
The police reacted swiftly to the allegation, which they described as "blackmail".
In a July 20 letter to Okiro, NDIC lawyer Mr Okunade Olorundare (SAN), demanded re-payment of the loan within 48 hours. The corporation also accused Okiro of abuse of office and a breach of the Code of Conduct for public officers for using his office to secure the contract.
"Our client informed us that as at January 16, 2006 when the banking licence of Lead Bank Ltd was revoked, Hekiro Nig. Ltd, which was being run as your family business enterprise was indebted to the bank to the tune of N166,597,365.97.
"NDIC as a liquidator of Lead Bank Ltd wrote you a demand letter on May 9, 2007, asking you for proposal on how you would want to liquidate the debt. "By various documents submitted to us by our client, you personally guaranteed the loan by mortgaging your landed property at Abeokuta covered by certificate of occupancy number 022226 in the name of Mike Mbama Okiro, which you obtained while in Ogun State Command of the Police.
"From some of the documents passed to us, you signed as chairman, while in some, you signed as director for Hekiro Nigeria Limited.
"However, despite the fact that you are a police officer and knowing the implication of forging a signature, you signed as Bessy Okiro and which signature is consistent with your true signature as Sir Mike Okiro on some of the documents available to us.
"Apart from signing as Bessy Okiro, we have discovered that you did not declare your interest in Hekiro Nigeria Ltd to the Code of Conduct Bureau as required by the 1999 Constitution," the letter said.
Hekiro Nigeria Ltd, NDIC said, maintained a corporate account number 32620009260 with the Port Harcourt, Rivers State branch of the bank where the facilities were drawn.
The corporation said Okiro’s international passport number AO696925 was used in opening the account.
NDIC contended that after series of efforts to recover the loan, Okiro’s wife, Hera, paid N5million vide a Fidelity Bank cheque number 00553907 on April 30.
"Our instruction, therefore, is to demand for the immediate payment of the outstanding sum of N161,597,365.97 which was the accrued debt as at January 16, 2006.
"You are to deposit the above sum in our chambers or pay directly to NDIC, the liquidator of Lead Bank Ltd, within 48 hours from today.
"In addition to the above, it is our client’s further instruction to drag you before the Code of Conduct Tribunal and equally to write to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and related agencies to prosecute you.
"You are to comply with the above demand immediately, else, we shall carry out our client’s instructions to the hilt," the letter said.
Contacted, the Police Force Public Relations Officer, Mr Emmanuel Ojukwu, said the letter was directed to Okiro personally, adding that the alleged transaction was private not official.
Ojukwu said he recalled that the police had charged the NDIC management to court for alleged conspiracy and fraudulent deals with the recovered fund of Fortune Bank (in liquidation).
He said the allegation against Okiro could be a "hit back" by the corporation.
The police filed charges at an Abuja High Court against NDIC Managing Director, Mr Ganiyu Ogunleye and its Executive Director of Operations, Prof. Peter Umoh.
Also charged are two members of the Central Bank of Nigeria (CBN) -Interim Management Committee for Fortune Bank, Dr Joe Emerson, and Mr Innocent Ilozumba, a manager with Fidelity Bank, Adedapo Agboola and a former chief accountant of Fortune Bank, Pius Obeleke.
The police alleged that Ogunleye, Umoh, Emerson and Ilozumba unilaterally granted 60 per cent interest waiver on the indebtedness of Nasarawa State Government to Fortune Bank without the approval of the then Finance Minister, Dr Shamsuddeen Usman.
They were also accused of dishonesty in depositing the N1.058 billion recovered from Nasarawa State Government with Fidelity Bank, instead of a designated Fortune Bank Account number 023-01236-41-55-3 with CBN.
The corporation, however, submitted that the criminal charge was "frivolous and a crude attempt to intimidate its officials and divert their attention from recovering the outstanding debt of N161.9 million, owed by Okiro’s family to Lead Bank".
NDIC said on November 12, last year, Okiro’s wife met with its officials and sought an interest concession on the loan which was not granted.
NDIC alleged that Okiro contributed to the bank’s insolvency by failing to repay credits of more than N166 million extended to him between 2000 and 2001.
The corporation alleged that Okiro secured the loan to finance a pipeline laying contract that he won from Nigeria Agip Oil Company (NAOC), adding that he used his family business enterprise, Hekiro Nigeria Ltd, to obtain the loans.
The police reacted swiftly to the allegation, which they described as "blackmail".
In a July 20 letter to Okiro, NDIC lawyer Mr Okunade Olorundare (SAN), demanded re-payment of the loan within 48 hours. The corporation also accused Okiro of abuse of office and a breach of the Code of Conduct for public officers for using his office to secure the contract.
"Our client informed us that as at January 16, 2006 when the banking licence of Lead Bank Ltd was revoked, Hekiro Nig. Ltd, which was being run as your family business enterprise was indebted to the bank to the tune of N166,597,365.97.
"NDIC as a liquidator of Lead Bank Ltd wrote you a demand letter on May 9, 2007, asking you for proposal on how you would want to liquidate the debt. "By various documents submitted to us by our client, you personally guaranteed the loan by mortgaging your landed property at Abeokuta covered by certificate of occupancy number 022226 in the name of Mike Mbama Okiro, which you obtained while in Ogun State Command of the Police.
"From some of the documents passed to us, you signed as chairman, while in some, you signed as director for Hekiro Nigeria Limited.
"However, despite the fact that you are a police officer and knowing the implication of forging a signature, you signed as Bessy Okiro and which signature is consistent with your true signature as Sir Mike Okiro on some of the documents available to us.
"Apart from signing as Bessy Okiro, we have discovered that you did not declare your interest in Hekiro Nigeria Ltd to the Code of Conduct Bureau as required by the 1999 Constitution," the letter said.
Hekiro Nigeria Ltd, NDIC said, maintained a corporate account number 32620009260 with the Port Harcourt, Rivers State branch of the bank where the facilities were drawn.
The corporation said Okiro’s international passport number AO696925 was used in opening the account.
NDIC contended that after series of efforts to recover the loan, Okiro’s wife, Hera, paid N5million vide a Fidelity Bank cheque number 00553907 on April 30.
"Our instruction, therefore, is to demand for the immediate payment of the outstanding sum of N161,597,365.97 which was the accrued debt as at January 16, 2006.
"You are to deposit the above sum in our chambers or pay directly to NDIC, the liquidator of Lead Bank Ltd, within 48 hours from today.
"In addition to the above, it is our client’s further instruction to drag you before the Code of Conduct Tribunal and equally to write to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and related agencies to prosecute you.
"You are to comply with the above demand immediately, else, we shall carry out our client’s instructions to the hilt," the letter said.
Contacted, the Police Force Public Relations Officer, Mr Emmanuel Ojukwu, said the letter was directed to Okiro personally, adding that the alleged transaction was private not official.
Ojukwu said he recalled that the police had charged the NDIC management to court for alleged conspiracy and fraudulent deals with the recovered fund of Fortune Bank (in liquidation).
He said the allegation against Okiro could be a "hit back" by the corporation.
The police filed charges at an Abuja High Court against NDIC Managing Director, Mr Ganiyu Ogunleye and its Executive Director of Operations, Prof. Peter Umoh.
Also charged are two members of the Central Bank of Nigeria (CBN) -Interim Management Committee for Fortune Bank, Dr Joe Emerson, and Mr Innocent Ilozumba, a manager with Fidelity Bank, Adedapo Agboola and a former chief accountant of Fortune Bank, Pius Obeleke.
The police alleged that Ogunleye, Umoh, Emerson and Ilozumba unilaterally granted 60 per cent interest waiver on the indebtedness of Nasarawa State Government to Fortune Bank without the approval of the then Finance Minister, Dr Shamsuddeen Usman.
They were also accused of dishonesty in depositing the N1.058 billion recovered from Nasarawa State Government with Fidelity Bank, instead of a designated Fortune Bank Account number 023-01236-41-55-3 with CBN.
The corporation, however, submitted that the criminal charge was "frivolous and a crude attempt to intimidate its officials and divert their attention from recovering the outstanding debt of N161.9 million, owed by Okiro’s family to Lead Bank".
NDIC said on November 12, last year, Okiro’s wife met with its officials and sought an interest concession on the loan which was not granted.
FORMER POLICE INSPECTOR GENERAL MIKE OKIRO'S DEBT TO LEAD BANK
 e all know banks don't just fail; people fail them, people, including corrupt executives, managers, customers and other stakeholders. Bank employees who fail to perfect a loan and ensure that they obtain proper documentations and securities are often behind credits that turn bad and loans that become unserviceable. There have been several cases of bank executives giving loans to themselves, recycling debts and getting much more loans out of previous debts owed to the bank, or giving loans to their friends without collateral to protect the bank.
In the days of Ibrahim Babangida, banks multiplied like bread and butter churches in Ikoyi and Victoria Island. Finance companies also mushroomed and every street corner in Ikoyi, Lagos Island and Victoria Island had one merchant, commercial bank or finance institution. It was a time no one is eminent except he or she had a bank to his name, or was on the board of a bank or another. Others then just saw it as an opportunity to get their hands on some of piece of the national cake, taking huge sums from banks and finance companies to finance all sorts of projects without plans to pay back. Such people are always generous enough to give the bank managers some good cut while they provide no reasonable securities to the banks. Police Inspector General Mike Okiro, then and still a civil servant did not let the opportunity pass him by. He set up his own business and gave birth to Hekiro Nigeria Limited, using the company to obtain contracts. Today, Hekiro Nigeria Limited is accused of owing the sum of N166 million to Lead Bank Limited, at one time known as Lead Merchant Bank, now in liquidation. N166 million is enough to push a small merchant bank like Lead Bank Limited into the gallows. The Nigeria Deposit Insurance Corporation (NDIC) has openly accused Inspector General Mike Okiro of contributing to the demise of the bank. Copy of Mike Okiro's international passport # AO696925 was enough evidence to substantiate the fact that Mike Okiro was one and the same person as Mike Mbama Okiro and Bessy Okiro with interests in Hekiro Nigeria Limited. All of Mike Okiro, Bessy Okiro and Mike Mbama Okiro use one and the same signature, and it was Okiro's international passport that he presented when he opened the account with Lead Bank. It is the Nigerian way of beating the system to its own rules. Mike Okiro's ploy is not different at all from the debacle of General Abdukarim Adisa and his Afonja Community Bank troubles when Femi Falana defended Afonja Community Bank manager after the poor guy was faced with very degrading treatment from General Adisa. We should also not forget so soon the various business dealings of disgraced Inspector General of Police Mr. Tafa Balogun, who also had several businesses and companies while he was in the Police Force. Corruption, greed, grabbing and dealing are the true nature of most men and women of the Nigeria Police. I remember the police couple who lived next to our staff quarters in Iyaganku Reservation Area in Ibadan sometime in the late seventies. I used to yearn to see them quarrel since that is the time they will wash their dirty lining in the open, screaming at one another and getting very physical. "You thief, Shameless man! You stole the poor lady's container and sold it." "Hear her, listen to her! My dear saint who stole an innocent man's half a million naira." "What of you? That Benz there, tell me how you get it, you common thief!" "Yeye woman, no be your police uniform you take waylay that Alhaji's truck and seize it, Ole! What do you want to tell me?" A punch landed on the female officer's face and a kick on her side as she struggled to grab her husband's manhood. The exchange will go on and on until the male inspector of police succeeds in kicking the female inspector's behind into their house. At some other time the battle will spill back into the large compound and feed my desire for more juice and stories. Then when order is restored in the home there will be nothing for us to feed on. Such was the drama the police couple often treat us to. Several business people and traders of the import and export kind took advantage of the weak process created by Babangida's Central Bank of Nigeria and his sidekicks to obtain banking licences and open three bedrooms' banks around town. They saw the bank as an avenue to grab depositors' money, to gain access to the Small and Medium Enterprises (SME) foreign exchange facilities the Babangida regime touted as a way to boost small scale enterprises and businesses. But the real goal was to provide a side door to cheat and provide foreign exchange to friends and cronies. It became a practice for these banks to source for deposits from everywhere, including government agencies, ministries at state and federal levels, and from poor Nigerian doctors working overseas in Saudi Arabia and the Middle East and needing safe banks to keep their funds. It was in one of these deadbeat banks and finance companies that many people lost their working capital, which consequently led to their death. As for the bank owners, it was an opportunity to obtain foreign exchange meant for Small and Medium Enterprises, and provided at far lower than the open market forex rates (an IBB Bolekaja idea), which they used to import building materials, steel, groceries, cars, and other pedantic items that are selling very fast in the Nigerian market. The iron rod market was booming as the building industry expand to Lekki, Ikorodu, Aja, Igbokuta, Ogudu, Osborne Road, Old Ikoyi, Ipaja, Abule-Egba and Oko Oba. Abuja was also a very hot property market. Greed was at its worse trend and SME funds were easily diverted to help the banks make quick profit and declare big bonuses to directors and executives. The banks are so under-capitalized and yet boasted ten times more than their capital base. The money was so much some of the bank owners just diverted the money into their own businesses, the main reason for which they set up the banks in the first place. A retired police officer who owned one of the banks was so local and primitive in his ways that he used to refer to the bank's money as his personal money. He expected every staff to bow down before him, to do his bidding and to give money to anyone he asked them to give money to. It does not matter to him if collateral has not been obtained. There were so many of these banks with multiple financial statements and they will show you the copy that fits your profile. The copy NDIC and the CBN is shown is different from the copy customers and shareholders can see. Everyone is made happy and pleased with the appropriate financial statement befitting their interests. Those bungalow flat banks are just too wonderful to imagine, and their clients are just too determined and hell bent to snatch some piece of the pie. It is the contribution of Police Inspector General Mike Okiro in the demise of Lead Bank Limited that is taking centre stage at the moment. Mr. Mike Okiro was said to have obtained the N166 million loan from Lead Bank Limited to finance a pipeline contract he obtained ('won' will not be appropriate here considering influence peddling and arm-twisting) from Nigeira Agip Oil Company (NAOC) using the name Hekiro Nigeria Limited. Mike Okiro was and is still a civil servant, and ought not to be engaging in such business, which was a clear violation of the Code of Conduct for civil servant. Okiro had personally guaranteed the loan with his property in Abeokuta with certificate of occupancy #022226 in the name of Mike Mbama Okiro. Mike Okiro was Ogun State Police Commissioner around the time he got the landed property. I wonder for how long was Mike Okiro in Abeokuta before he got himself a landed property there and where else in the states he has been commissioner and quickly procured lands, properties and businesses. The Federal Government of Nigeria has to carefully investigate Mike Okiro to find out his true assets and properties, to locate these properties, investments and interests, and to take them away from him. Mr. Okiro's business interests and those of his family and cronies must be investigated also. Banks must be asked to provide all information at their disposal about Okiro's business dealings, suspected involvements and ownership, Okiro's direct and indirect introduction of people to corporate bodies where assistance is sought for contracts and businesses must also be exposed. Mr. Mike Okiro must be relieved of his office with immediate effect as the evidences against him are overwhelming and damaging. Okiro does not possess the character and integrity deserving of the office of Inspector General of Police. | |||
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