Itâ€™s no news that most of Nigeria financial institutions have become home to fraudulent activities. Among banks that top the list in such practices is Skye bank, according to the newly released Central Bank of Nigeria (CBN) 2013 Annual report.
The report stated that Skye was culprit to various aspects of Banks and Other Financial Institutions Act (BOFIA). It was revealed that Skye Bank was fined N6 million for failure to obtain CBNâ€™s approval to promote a senior staff, failure to provide insufficient data for lodgment on credit report, and non-rendition of original certificate of capital importation and for under-reporting of regulatory returns on public sector deposits. It was also fined for failure to update documentation on a customerâ€™s account. Also, ordered to pay fine for withholding a customerâ€™s funds for 26 days after the promoters of the customer had written the bank that they were no longer interested in a facility.
Those vast in financial management are of the opinion that such practices wasted shareholdersâ€™ funds and must have robbed shareholders of enhanced dividends during the year.
Mr Bayo Adeleke, secretary of Independent Shareholders Association, ISAN, commended the CBN for its actions to ensure that commercial banks complied with rules and regulations of engagement. Adeleke said that such penalties should not be viewed from income generating perspective, but to enhance good corporate governance and adherence to standards. He advised regulators to be proactive, while banks should maintain a clean slate.