In its renewed efforts to promote financial system stability in the country, the Nigeria Deposit Insurance Corporation, NDIC has put together a two day workshop to sharpen the skills of law enforcement agents and officers from regulatory agencies that are involved in the investigation and prosecution of bank Directors, Managers and staff of banks involved in malpractices and insider abuses that might have led to the collapse of their banks or financial Institutions.
The workshop themed, “Effective Collaboration As A Strategy In The Fight Against Insider Abuses And Financial Malpractices In Banks And Other Financial Institutions in Nigeria”, was crafted to re-echo their ealier resolve at previous workshops to unite in the fight against menance of insider abuses and financial malpractices which had been identified as a major cause of bank failure, which if not tackled, was capable of eroding public confidence in the banking system.
Speaking in a keynote address, the Managing Director and Chief Executive Officer of NDIC, Bello Hassan reiterated that a safe and sound banking environment was an essential ingredient of financial system stability which of course, was the bedrock for economic development of every nation.
Hassan maintained that in line with Article 12 of the Core Principles of Effective Deposit Insurance which provided for every Deposit Insurer to put in place necessary mechanism of bringing to book parties found culpable in the failure of their bank or financial Institution, NDIC had been consistent since 2012 in organising the workshop which he said had provided an avenue for sharing of ideas and to work together as a team and synergize efforts towards achieving a common goal of ensuring financial stability.
According to him, the collaboration had yielded and was still yielding results particularly in the area of investigation and prosecution adding that “In line with similar initiatives by the Corporation, this workshop aims to complement the efforts of the Inter-Agency Task Force on the Implementation of Failed Banks Act, and I want to believe that all the agencies involved as members of the Task Force are being represented at this workshop.”
He observed that the Corporation, whilst bearing in mind the positive impact of such collaboration, would continue to strive at enhancing the synergy between all of them in the area of law enforcement relating to investigation and prosecution of financial malpractices.
“Please permit me to use this forum to appeal to the members of the Task Force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the Task Force.
“Through our collaborative efforts, I am aware that fourteen (14) prosecution cases are on-going at various courts, eighteen (18) on-going investigation with FMIU, eight (8) with EFCC and nine (9) concluded investigations with Federal Ministry of Justice for advice and prosecution. This is an indication that we are on the right course”, said.
Aware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases, the Managing Director, however, urged them not to relent on their efforts and be rest assured of the corporation’s unflinching support at all times.
Noting that the banking system was rapidly evolving with new innovations, he pointed out that “it is clear that a new phase of financial technology driven economy is currently reshaping the global financial services space.”
He continued, “With this development, the criminally minded users of the banking system including the nototrious ‘cyber criminals’ are busy perfecting their misplaced skills. This is why workshops like this are necessary to enable law enforcement officers understand the dynamic operating environment. The law enforcement officers must aquaint themselves with basic knowledge of the types of fraud prevalent in our banks.
“We are quite aware of the efforts and measures put in place by the regulatory/supervisory agencies to curb the activities of fraudsters in the system, and it is our firm belief that the efforts are yielding positive results. The Authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system.
“The above underscores the fact that banks and banking operations are becoming more vulnerable. The advancements in information technology that opens new possibilities and vistas in banking operations has equally exposed the banking subsector to emerging threats.
“This situation increases the burden on the regulators and supervisors to enhance their operational capacities. It has also heightened the need for more collaboration between agencies involved in the fight against banking malpractices.
“This workshop, is therefore, among the steps taken to provide a platform for the agencies concerned to sharpen their skills, share ideas and be well-equipped to face the challenges.
“We recognize that, for the Corporation to achieve its mandate and objectives in a more efficient and effective manner, and for the banking system to thrive on the gains of a stable financial system, we must all rise up to the challenge of bringing to book those who might have contributed to the failure of their banks.
“On this note, I would like to urge you all to participate actively in the deliberations, engage the facilitators in robust discussions so that at the end of the workshop you will come up with recommendations that will translate to actionable plans.”
Photo: (L-R): Head Legal Department, NDIC, Mr. Henry Fomah; Director Legal Department, Central Bank of Nigeria, CBN, Mr. Kofo S. Alada; Rep. of EFCC Chairman and Ag. Zonal Commander, Mr. Michael Wetkas; Rep. of MD/CEO, NDIC and Director Communications & Public Affairs Department, Mr. Bashir A. Nuhu; AIG. Force CID, Alagbon, Romokere God’s Gift Ibani; Commissioner of Police SFU, Ayotunde G.Omedeinde; Rep of Director of Public Prosecution of the Federation, Mr. Emmanuel Kaswe and Coordinator, FMIU, DCP Sirajo L. Salisu in a group photograph during the NDIC’s 2024 Capacity Building Workshop For Law Enforcement Agencies held in Lagos.
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