Economy: Issues In Titan Trust Bank Acquisition Of Union Bank – Ex-Union Bank Staff

 

“Perhaps the President and Commander in Chief as well as leadership of NASS should ask these questions and more”.

PEGASUS REPORTERS, LAGOS | DECEMBER 30, 2021

A concerned ex-Union Bank employee who said there must be some shady deals in Titan Trust Bank takeover of one of Nigeria’s foremost bank, the Union Bank Plc, sent in this questions which according the the writer, Nigerians will be interested in.

Below are some of the real questions begging for answers.

FGN injected N300b to stabilize/recapitalize Union Bank. Federal ministry of finance and CBN can confirm this position. A further N239b was deployed into the bank by Amcon to buy off Toxic Assets on the bank’s books.

How then did FGN end up with 21% of the bank while Union Global Partners (foreign investment vehicle) walked away with 64% stake when it only invested N78b ($500m @ N155/$ in 2011? .

The Bank has now been sold for a fraction of the sunk amount.  Is NASS aware of these issues?.

Tunde Lemo was a deputy governor of CBN during the transaction period.
By corporate governance provision, is he allowed to be associated with acquisition of this same intervened Bank as a beneficiary?.

Union bank was a group comprising of Seven Companies in 2011,but now reduced to One Commercial Entity without recourse to FGN.

What happened to all the subsidiaries and/or other assets?.

Who acquired what asset and under what terms/approvals?.

Faruk Gumel is the current Chairman of Nigeria Sovereign Investment Authority, NSIA, a state establishment and at the same time a Group Executive Director with Tropical General Investments, TGI, the major shareholder in Titan Bank the new owners in Union Bank.

Does this transaction qualify at arms length as defined by Nigeria Corporate Governance Provision?.

Perhaps the President and Commander in Chief as well as leadership of NASS should ask these questions and more.

CBN, AMCON, Federal Ministry of Finance, and erstwhile Managing Director of Union bank, Mr.Emeka Emuwa should provide the answers.

• A concerned former Union bank staff writes.

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