A private investigation report has revealed Guaranty Trust Bank's (GTB) involvement in several unethical practices, including unsolicited account openings, data breaches, and false profit declarations. The report indicated that these activities run counter to the operational guidelines of the Central Bank of Nigeria (CBN), with the bank allegedly manipulating its financial position to appear more robust to potential customers.
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GTB, a commercial retail bank and subsidiary of Guaranty Trust Holding Company Plc (GTCO Plc), has faced these serious allegations, despite its significant standing in Nigeria and the global financial market. The investigation accused the bank of operating without adherence to corporate governance standards, engaging in unscrupulous, unethical, and criminal activities that undermine its integrity.
The private investigation, conducted by the Global Integrity Crusade Network (GICN), highlighted the extent of GTB's involvement in corrupt practices. Speaking at a press conference in Abuja, Edward Omaga, Esq., President of GICN, emphasized that the investigation relied on provisions in the Constitution of the Federal Republic of Nigeria to scrutinize the bank’s operations.
Part of the report, seen by Capital Post, reads:
"The PIR is compiled pursuant to Section 24 (d) and (e) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), read together with our Objective No. 2. As stakeholders in nation-building, our members are duty-bound to contribute to the wellbeing of the community and assist lawful agencies in maintaining law and order.”
The report further referenced Section 15 (5) of the 1999 Constitution, which mandates the abolition of corrupt practices and abuse of power, underscoring the group's duty to expose misconduct.
Guaranty Trust Bank Limited operates as a public limited company, listed on both the Nigerian and London Stock Exchanges. The bank, led by Segun Julius Agbaje as Group Chief Executive Officer since August 2021, has 25 billion ordinary shares and 8 active directors. Its sole shareholder and person with significant control is Guaranty Trust Holding Company Plc.
Despite its corporate stature, the bank’s operations have come under scrutiny. Investigations revealed that the bank’s alleged violations were part of an attempt to inflate its size to potential customers, a move that contravenes regulatory standards set by the CBN.
In light of the findings, the Central Bank of Nigeria has been urged to take immediate action. GICN, during its press briefing, called for the dissolution of GTB’s board and the suspension of Segun Julius Agbaje as Group CEO. According to the group, this move is crucial to ensure a thorough investigation of the bank's financial breaches and compliance with relevant laws and regulations.
Additionally, the investigation revealed that GTB has faced regulatory sanctions beyond Nigeria. The Central Bank of Ghana had previously suspended the bank due to breaches in foreign exchange regulations, including fraudulent documentation. Furthermore, the UK's Financial Conduct Authority (FCA) fined Guaranty Trust Bank (UK) Limited £10.96 million for failing to implement adequate anti-money laundering procedures. The FCA attributed this misconduct to senior management's failure to address persistent weaknesses in the bank's anti-money laundering controls.
While GTB faces mounting allegations of unethical and illegal activities, the pressure on the Central Bank of Nigeria to take decisive action has increased. With a growing list of infractions, both domestically and internationally, stakeholders are calling for a full-scale investigation to restore accountability and trust in one of Nigeria's largest financial institutions.
The revelations have sparked discussions about the broader implications for corporate governance in Nigeria’s banking sector and the need for regulatory bodies to enforce stricter oversight to prevent similar breaches in the future. Bowa Media, City Post.
