The Nigeria Deposit Insurance Corporation (NDIC), in collaboration with law enforcement agencies, is set to investigate the directors, managers, and staff of the now-defunct Heritage Bank. This announcement comes over a month after the bank’s liquidation.

Bello Hassan, NDIC managing director represented by director of corporate communications Bashir Nuhu, made the statement at the 2024 capacity building workshop for law enforcement agencies in Lagos.

The workshop, titled “Inter-Agency Collaboration in the Fight Against Financial Malpractices in Banks and Other Financial Institutions in Nigeria,” emphasised the importance of cooperation in addressing financial crimes.

Hassan highlighted that the Central Bank of Nigeria’s recent revocation of Heritage Bank’s license necessitates a thorough investigation into the bank’s collapse. The NDIC is determined to bring those responsible to justice. Currently, there are 14 ongoing prosecution cases in various courts, 18 investigations with the Financial Malpractices Investigation Unit (FMIU), eight with the Economic and Financial Crimes Commission (EFCC), and nine concluded investigations pending advice and prosecution from the Federal Ministry of Justice.

“The NDIC, as a key participant in the financial safety-net, has taken the fight against insider abuses and financial malpractices in banks very seriously,” Hassan said. “A safe and sound banking environment is essential for financial system stability, which is the bedrock of economic development.”

Despite the challenges in investigating and prosecuting financial crimes, Hassan urged law enforcement agencies to continue their efforts, assuring them of the NDIC’s unwavering support. He reiterated that effective collaboration is crucial in combating insider abuses and financial malpractices, which are major causes of bank failures and threats to public confidence in the banking system.

Since 2012, the NDIC has organized workshops to enhance the skills of law enforcement and regulatory agency officers involved in investigating and prosecuting bank fraud. Hassan stressed the importance of adapting to the rapidly evolving banking system, driven by financial technology innovations, to stay ahead of cybercriminals and other financial fraudsters.

The workshop aims to reinforce the resolve to unite with law enforcement agencies in the fight against financial malpractices, ensuring a stable and trustworthy banking environment in Nigeria.

AIG Romokere Ibani, assistant inspector general of Police, FCID, Alagbon, Lagos, in a goodwill message, challenged bank management to scrutinize internal practices to prevent financial crimes. “Evidence has proven that those who defrauded the banks succeeded with the support of insiders,” Ibani stated.

Olanipekun Olukoyede, executive chairman of the Economic and Financial Crimes Commission (EFCC), represented by Lagos Zonal Commander Michael Wetkas, also urged banks to screen their staff thoroughly to identify those colluding with criminals. He commended the NDIC for organizing the workshop. (BusinessDay)

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