Failed banks: NDIC seeks collaboration with law enforcement agencies for prosecution

The Nigeria Deposit Insurance Corporation (NDIC) is seeking the collaboration of the law enforcement agencies in the investigation and prosecution of those who contributed to the failure of banks in the country.

This was made known by Bello Hassan, managing director/chief executive, NDIC, on Wednesday, at the 2022 capacity-building workshop for law enforcement agencies, themed ‘Effective Investigation and Prosecution of Banking Malpractices that led to the Failure of Banks’, organised by the NDIC in Lagos.

He said it is the responsibility of the authorities to ensure that the effect of the actions of these culprits is mitigated by bringing such people to book to serve as a deterrent to others.

“It is against this background that, the regulators/supervisors and the law enforcement agencies, must collaborate and ensure that those who contributed to the demise of banks are thoroughly investigated, and if found to have some questions to answer, are duly prosecuted in accordance with the laws of the land,” Hassan said.

He noted that the investigation and prosecution of failed banks’ offences are provided for under various legislations such as the NDIC Act, 2006, the Failed Banks Act, 2004, the Banks and Other Financial Institutions Act (BOFIA), 2020 and the Companies and Allied Matters Act (CAMA), 2020, among others.

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Speaking with Journalists at the end of the opening ceremony, he said, “It is important that we create a synergy among ourselves on the issue of this investigation of malpractices in failed banks and that’s why we find it necessary to organise this workshop on an annual basis so that we can sharpen the skills of our staff to be able to do their work efficiently and diligently.”

In the discharge of these responsibilities as specified under these laws, he said the Corporation requires effective collaboration between its staff and the law enforcement agents in the acquisition of relevant knowledge and skills.

“This annual workshop, which is the 11th in the series since it started, affords the Corporation the opportunity to share ideas with the law enforcement agencies on developments within the banking landscape that will enhance their skills in the discharge of their responsibilities,” he added.

In his goodwill message, Mohammed Abubakar, Director of Public Prosecution of the Federation (DPPF), said the integrity of the banking system is central to the socio-economic wellbeing of the country. He, therefore, stressed the need for effective regulation of the sector through the formulation of a cohesive legal framework and enforcement mechanism that cannot be overemphasized.

“The theme of this workshop is a poignant reflection on the reckless years of banking malpractices that led to the failure of several banks, with the attendant unremitted consequences on our country’s socio-economic life. We recall the pains and despair that many Nigerians had to go through, and I pray that we will continue to strive to ensure that such a sad chapter of our national life would never be repeated,” Abubakar said.

He said the theme of the workshop cannot be more apt as it underscores the continuous need for stakeholders to be committed to the exigencies of combating banking malpractices in the country.