Information we have authoritatively gathered has revealed real reasons behind the sack of Mallam Falalu Bello, Chairman of Mainstreet Bank Ltd.
A source who confided in us, said Bello’s former employer, Unity Bank appealed against him to the Central Bank of Nigeria (CBN), over allegations bordering on breach of corporate governance when he was the managing director of the bank.
The petition alleged his violation of corporate governance from his former bank over one-party approval of N3.4 billion ($21.067 million) foreign exchange deal is also a factor underlining his resignation.
Unity Bank had in a petition to the CBN alleged that Bello unilaterally approved the said amount for his company to import fertilizer, but he had been foot-dragging to pay back the facility.
The source further disclosed “After the consideration of the petition written by Unity Bank against him, the CBN wrote a response to the bank and copied the management of Asset Management Corporation of Nigeria (AMCON), indicting the former managing director of gross breach of corporate governance. This consequently prompted the AMCON management to advise him to resign from his position as the Chairman of Mainstreet Bank on the strength of CBN’s letter.”
According to the petition signed by Ahmed Yusuf, Acting Executive Director, Enterprise Risk Management and Umar M. Adamu, Divisional Head, Legal and Compliance, with Ref. No UB/L&C/UMNHJSIMB5FB/02l14, dated3rdFebruary, 2014, to the Governor of CBN stated in part: “We hereby humbly write to bring to your notice instances of Violation of Code of Corporate Governance. Sometime between June to September 2013, three Deferred Letters of Credit (LCs) totaling$21,067,500.00 were opened in favour of MBS Merchants Limited”.
Besides the CBN, Unity Bank also petitioned the Inspector General of Police, Mohammed Abubakar, over the matter, which prompted the invitation of Bello for questioning by the Force Criminal Investigation Department (FCID) Headquarters in Abuja.
A statement issued by MBS Merchants also admitted that Bello was invited to the Office of the Inspector General of Police (IGP) in Abuja to clarify issues in connection with a petition by Unity Bank Plc to the Central Bank of Nigeria (CBN) and the IGP.
The statement said the petition was based on three deferred letters of credit issued by the bank on behalf of MBS Merchants.
“In this regard, the MBS has answered all CBN enquiries on the matter. Also, Mallam Falalu Bello was invited by the IGP to discuss the same issues involved, being a recipient of the same petition”.
“Based on his position as chairman of MBS, Bello equally answered the invitation of the IGP just as he did that of the CBN so that such high level discussions between the parties involved will bring closure to a matter, which is basically a financial transaction between two parties that have been business partners for over seven years,” the statement said.
It could be recalled that Bello retired as the Group Managing Director of Unity Bank Plc on June 30, 2011, and was shortly afterwards, appointed chairman of Mainstreet Bank, one of the three banks nationalised by the Sanusi Lamido Sanusi-led Central Bank of Nigeria.
According to a source, there has been no love-lost between Bello and the managing director of Mainstreet Bank, Ms. Faith Tuedor-Matthews, a woman was reported in the media sometimes last year February to have resigned over alleged misappropriation of funds in the bank. It was alleged that she transferred funds into her private accounts abroad, which was said to have impelled the Board led by Bello to suspend her. However, the story was unfounded.
Nevertheless, their rivalry was said to have polarised the staff of the bank and affected their productivity. During the height of hostilities, staff perceived to be loyal to Bello was allegedly transferred from the head office and the partitions in all the offices, except on the executive level, were dismantled to allow a see-through floor plan. It was also purported that the strategy was to unmask any clandestine movement or motives by Bello loyalists.
In the meanwhile, there is no replacement yet for the former chairman, Falalu Bello. But, a source in AMCON who claim anonymity said “his successor would, most likely, be selected from current Board members since the bank would be sold to a new core investor soon.”
All efforts to reach corporate communications personnel of Mainstreet bank were futile.
– societyreelnews