Titan Bank chair, Lemo, major shareholders under investigation over acquisition of Union Bank
“The department asserted, "The shareholding structure is also verifiable at the Corporate Affairs Commission."
Titan Bank chair, Lemo, major shareholders under investigation over acquisition of Union Bank
Titan Trust Bank (TTB) is under the glaring scrutiny of special Investigator Jim Obazee, who recently submitted a detailed report to President Bola Tinubu on December 20 about some financial discrepancies in the country.
The report has stirred a storm, particularly regarding TTB’s acquisition of Union Bank of Nigeria in 2022. In response to these allegations, the investigator has summoned key figures involved, including TTB Chairman Tunde Lemo and major shareholders Cornelius Vink and Rahul Savara, for a “follow-up meeting” in Abuja on December 28.
Lemo, a former deputy governor of the Central Bank of Nigeria (CBN), vehemently defended the bank’s actions, asserting that due process and stringent adherence to regulatory requirements were maintained throughout the acquisition.
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According to a statement issued on Sunday to Punch newspaper, Lemo emphasised, “Due process was followed in the establishment of Titan Trust Bank, and every process that led to the acquisition of Union Bank was verified by the CBN, SEC, and other regulators.”
TTB’s Corporate Communications Department joined the defense, issuing an extensive statement on Sunday. The statement delved into the ownership structure of TTB, highlighting the holdings of Magna International DMCC and Luxis International DMCC, owned by Rahul Savara and Cornelius Vink.
The department asserted, “The shareholding structure is also verifiable at the Corporate Affairs Commission.”
However, the investigator, Deputy Commissioner of Police Eloho Okpoziakpo, expressed dissatisfaction with these responses. In a letter on Sunday, Okpoziakpo invited Lemo, Vink, and Savara for a meeting in Abuja, noting, “You will also be required to make additional statements to your earlier statement on that day.”
The letter warned of potential consequences, stating, “Should you also refuse to attend the meeting to provide additional statements… it will be construed that you misled the Nigerian public with your reaction in the Punch Newspaper.”
Obazee’s initial report, submitted to President Tinubu, raised serious concerns about the legitimacy of TTB’s acquisition of Union Bank.
The investigator alleged that the former CBN governor, Godwin Emefiele, utilised “ill-gotten wealth” to establish TTB and subsequently acquire Union Bank and Keystone Bank through proxy individuals.
Obazee contended that entities owned by Vink, suspected to be a front for Emefiele, lacked a physical presence as claimed, contravening banking regulations.
In response to these allegations, TTB’s Corporate Communications Department detailed the acquisition process. The statement highlighted a Share Sale and Purchase Agreement signed in December 2021 and a meticulous due diligence process involving reputable firms. TTB emphasised regulatory approvals obtained from the Central Bank of Nigeria, the Securities and Exchange Commission, and other relevant authorities.
The historical backdrop of Union Bank adds complexity to the unfolding drama. Established in 1917 as Colonial Bank, it underwent several transformations, including government acquisition and subsequent privatisation. The report traced Union Bank’s journey through the CBN’s banking sector consolidation policy and highlighted its recapitalization in 2012.
President Tinubu has charged Obazee with a comprehensive report on public wealth held by both private and public entities.