Daily Independent Online.         * Thursday, March 4, 2004.

Reps ask Sanusi to explain N11b SGBN overdraft

By Uchenna Awom

National Assembly

Correspondent, Abuja      

 

Representatives Wednesday in Abuja directed Central Bank of Nigeria (CBN) Governor, Joseph Sanusi, to explain within seven days how Societe General Bank of Nigeria (SGBN) overdrew its capital base by N11 billion.

He was also asked to explain CBN decision to introduce a N1,000 currency note without recourse to the National Assembly.

Sanusi drew the anger of the lawmakers for consistently shunning invitations by the Committee on Banking and Currency to explain the SGBN distress problem, especially as it affects depositors’ funds.

He was asked through CBN Deputy Governor (Banking Operations), Shamsudeen Usman, to appear before the committee within the seven days’ ultimatum or the House would invoke Sections 88 and 89 of the  Constitution to order his arrest.

Committee Vice Chairman Usa Igwesi said Sanusi has been written twice to appear before it not only to clarify the sensitive issues but also to defend the bank’s budget, but that he chose to ignore the invitation on both occasions.

“We see it as a slight, we see it as an insult, we see it as a serious dishonour to members of the House of Representative and we are prepared to stand on our feet to fight out this matter,” he said

Igwesi, along with other members of the committee, refused to take submissions from Usman on behalf of Sanusi, insisting that it is only the governor who can now address the issues.

The matter, he said, affects the Nigerian people who mandated lawmakers to represent them and that SGBN depositors cannot withdraw money neither do they know what is going, “yet the bank was allowed to overdraw its capital base, meaning that the depositors will have nothing to fall back on in case the bank finally closes shop.”

Igwesi particularly frowned at the statement credited to Sanusi during the Bankers Committee meeting in Lagos where he allegedly described National Assembly members as “bloody politicians” who do not know anything about banking operations to talk about raising banks’ capital base to N10 billion.

He explained that the Senate called for an increase in the capital base of commercial banks so that the banks will have something to fall back on in case of distress.