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Liquidation Of Fortis Bank Still Ongoing, Says NDIC - LEADERSHIP

AUGUST 13, 2020

By Mark Itsibor 


The Nigeria Deposit Insurance Corporation (NDIC) said it adhered to statutory guidelines on the distress resolution and liquidation of Fortis Microfinance Bank (MFB) Plc and the protection of interest of its depositors.

NDIC in a statement yesterday said, a joint CBN/NDIC interim management committee was initially set up to manage the affairs of the bank towards stemming the tide of its mismanagement including payment of N2 billion to it by the committee of Governors of CBN to the bank’s depositors in order to ease the hardship they were experiencing.

The corporation said the intervention of regulatory agencies in the resolution of the defunct Fortis MFB were in two phases. “Unfortunately, when all the regulatory/supervisory efforts to turn around the fortunes of Fortis MFB failed to yield the desired results, the CBN was left with no other option than to revoke its operating licence in December, 2018,” NDIC said in a statement by its director, communication & publication affairs, Dr Sunday Oluyemi.

Oluyemi said the liquidation of Fortis MFB is on-going and the Corporation is making necessary efforts to recover the failed MFB’s any residual assets (bad loans and physical assets) so as to enable the NDIC pay depositors with funds in excess of the insured limits.

“We like to assure the general public that the Corporation is intensifying efforts to ensure that the residual assets of the Fortis MFB in-liquidation are realised with a view to paying the MFB’s uninsured depositors,” he added.

Concerning complaint by a business businesswoman, Mrs Uju Ohanenye who accused the Corporation of failure to pay the balance of N222.4 million out of the fixed deposit of N301 million she lodged with Fortis Microfinance Bank (MFB) Plc, the NDIC said it has not failed her.

“Mrs Ohanenye had contacted the Corporation on several occasions where all the issues involved in the matter were painstakingly explained to her. Contrary to her insinuation and accusation that the Corporation allowed Fortis MFB’s management to defraud customers and had been negligent in the discharge of its duties, the NDIC wishes to make the following clarifications:

“Mrs. Ohanenye approached the Fortis MFB’s IMC and was paid a total of N74,703,867.65 (Seventy-Four million, Seven Hundred and Three Thousand, Eight Hundred and Sixty-Seven Naira, Sixty-Five Kobo) only, in two tranches of N18,000,000:00 (Eighteen million Naira Only) and N56,703,867.65 (Fifty-Six million, Seven Hundred and Three Thousand, Eight Hundred and Sixty-Seven Naira, Sixty-Five Kobo Only), respectively.

“While the first tranche was for the treatment of her ailing husband, the second tranche was paid from the N2 billion approved for the IMC by the CBN in order to ease the hardship experienced by depositors.

“Subsequently” Mrs Ohanenye was paid another sum of N200, 000, which she was entitled to after the liquidation of Fortis Microfinance Bank (MFB) Plc.


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