Since Titan Trust Bank acquired Union Bank, some staff of Union Bank have continued to express their displeasure about the transaction. This is based on the amount spent by the Federal Government and AMCON to recapitalize Union Bank and the role of Mr. Tunde Lemo who was the deputy governor of Central Bank of Nigeria then In 2011.
A concerned former Union bank staff writes:
Below are some of the real questions begging for answers.
FGN injected N300bn to stabilize/recapitalize Union Bank. Federal Ministry of Finance and CBN can confirm this position.
A further N239bn was deployed into the Bank by AMCON to buy off toxic assets in 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 a 64% stake when it only invested N78bn ($500m @ N155/US$ 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 provisions, is he allowed to be associated with the 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 NSIA, a state establishment and at the same time a Group Executive Director with TGI, the major shareholder in Titan Bank, the new owners in Union Bank. Does this transaction qualify as arms length as defined by Nigeria corporate governance provision?
Perhaps the President and Commander in Chief, President Muhammadu Buhari 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.