Nigeria: Ibru struck from register

The Chartered Institute of Bankers of Nigeria (CIBN) has struck out the name of a former managing director/chief executive officer of Oceanic Bank and honorary fellow of the Institute, Cecilia Ibru , from its register of members.

A statement from the body yesterday said the decision was in furtherance, maintenance, and observance of ethical standards and professionalism among practitioners of the banking profession in Nigeria. The CIBN explained that the action was taken in line with the decision of its disciplinary tribunal on 12th December, which was confirmed by the governing council of the Institute, at its meeting of 13th December.

The tribunal, made up of eminent members of the banking profession with a retired justice of the Supreme Court as an assessor, in a unanimous decision granted the CIBN's request, indicating that Ibru 'should cease to hold herself out as a member of the banking profession (as provided by s. 16 of CIBN Act). With this development the name of Dr. (Mrs.) Cecilia Ibru has been struck out of the Register of Members of the Institute and hence, Banking Profession. She has also ceased to be a member of the banking profession.'

On 14th August 2009, the Central Bank of Nigeria (CBN) sacked Ibru alongside four other bank CEOs, after an examination revealing that the institutions they controlled had high level of non-performing loans, poor corporate governance practices, lax credit administration processes and an absence of or non-adherence to credit risk management practices, among other problems.

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.

© 2012 Menas Associates

Former Oceanic Bank CEO convicted of fraud

The former Oceanic Bank CEO, Cecelia Ibru, has been convicted of fraud and has been sentenced to six months in prison for forfeiting N190 billion (US$1.2 billion) in cash and assets.

Ibru was one of the most prominent senior bank executives who were removed from their posts and were arrested in connection with the 2009 near-collapse of nine Nigerian banks which had to be rescued by the Nigeria Central Bank.

She pleaded guilty to three of 25 counts of fraud and mismanagement and the sentence was the result of a settlement agreement, Judge Dan Abutu, told the court in Lagos on Friday. Her three sentences were for six months each but will now run concurrently so she will only spend only six months in jail.

However she is to be “stripped of a long list of 199 assets and funds worth over N190 billion”, the Economic and Financial Crimes Commission (EFCC) which brought the case, said in a statement on Friday. The amount recovered is believed to be the highest in Nigerian criminal history. The central bank said that the assets forfeited included 94 properties in Nigeria, the US and Dubai, as well as shares in 100 companies of which 80 are listed in Nigeria and 20 are private.

Ibru belongs to an elite family, which controls massive business interests across Nigeria and she was famous on Nigeria's party circuit for her opulent life style and her taste for corporate jets. Until her arrest, she been considered beyond the reach of the fraud police so the verdict will no doubt shock Nigeria's financial world.

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.

© 2010 Menas Associates