GTB heads for court after group’s financial foul play allegations

A group known as GIC has accused Guaranty Trust Bank (GTB) of financial foul play, including opening accounts without customers’ consent, foreign exchange fraud and falsification of the 2024 half-year financial statement.

Economy Post understands that GTB lawyers have, however, sued the group in a bid to clear the bank’s name.

In a viral video that circulated over the weekend, the group had said, “One of the corrrupt practices linked to Guaranty Trust Bank in Nigeria is unsolicited bank opening. This is a situation where a customer who did not approach the bank or show any interest in maintaining an account with the bank, yet the bank goes ahead to source for the customer’s information such as telephone number, date of birth and bank verification number to open an account for the customer without his or her consent.”

The group alleged that the aim of the practice by GTB was to increase the customer base of the bank, thereby giving it high ranking in terms of size, capacity and profitability,

READ ALSO: Customers slam GTB with 932 court cases, demand N596bn, $24m

The group noted that the unsolicited account opening is tantamount to breach of data privacy, identity theft and can expose innocent account holders to fraud.

The group during its press conference

The group further alleged that “as at today, there are over 10,000 customers in the data base of Guaranty Trust Bank who are already exposed to grave dangers without their knowledge. Some of these customers have threatened to sue the bank.”

The group also alleged that GTB “has been declaring profits that do not reflect the bank’s actual financial performance,” noting that its N1.004trn profit recently declared by the bank as profit was a ruse.

He alleged that the bank was involved in round-tripping, claiming that GTB United Kingdom was sactioned by the Financial Conduct Authority (FCA) and was forced to pay £525,000 pounds for financial breaches between May 19, 2008, and July 19, 2010.

It also alleged that the FCA had imposed over £10 million pounds on GTB for financial infractions, noting that the lender got a 30 percent deduction from its fines, “bringing the total money paid by GTB to N7, 671,800 pounds.”

The group said the FCA, in justifying the fine imposed on GTB, noted that the bank failed to put in place measures to stop money laundering.

READ ALSO: N75bn Anchor Borrowers Fund sits in GTB and may not be lent to farmers

The group equally alleged that the Bank of Ghana withdrew the foreign exchange license issued to GTB Ghana Limited for a period of one month, with effect from March 18, 2024. It noted that the press release by the Bank of Ghana showed the license withdrawal was as a result of FX fradulent documentation, among other financial crimes.

GTB dismisses report, moves to court

However, the bank has dismissed the report, saying it was “false news.”

In a statement released by GTB on October 4, the bank said, “Based on the incessant release of false news reports on GTCO’s business activities, Results and its Management Team, it has become necessary to set the records straight and dispel attempts by certain groups to create a false narrative about the GTCO Brand and its Management.

“The false news articles which are being sponsored using the media, center around baseless allegations against the Group’s business activities and its Executive Management.

“Being a responsible corporate citizen and a first class institution, GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports, and will continue to use the full extent of the rule of law available to safeguard its reputation”

It urged all customers, shareholders and stakeholders to disregard “all the allegations being peddled through various media platforms and handles,” noting that all of its executive management team would continue to operate in their full capacities as appointed, and were not under any financial or regulatory scrutiny as alleged.

CBN urged to investigate

Amid the allegations on GTB and its rebuttal, the Central Bank of Nigeria (CBN) has been asked to investigate the matter.

A United Kingdom-based financial analyst, Dr Tedra Umeobosi, told Economy Post that the CBN should wade into the matter to establish the veracity of the allegations or otherwise.

“The CBN is on the spotlight here. As the regulator of deposit money banks in Nigeria, it should swiftly set up a committee to investigate these allegations for the sake of GTB, its customers and investors. While the allegations may or may not be true, it is the job of the regulator to investigate and find out what the truth really is,” he said.

READ ALSO: Polaris, Keystone acquired for free, Emefiele used proxies to buy Union Bank – Investigator

A banking expert, Ms Adeola Oladehinde, said she was shocked by the allegations of the group, noting that all the investigative agencies should wade into the matter.

“It is not just the CBN that should look into the matter. The Economic and Financial Crikmes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) should look into the allegations,” she said.

Ms Adeola said the investigations had become imperative due to the increased loss of confidence in Nigeria’s financial institutions by the customers.

“The banking sector has been in the news for some time now. There were allegations against the former CBN governor on how he floated a bank or used cronies to float a bank or even banks. The case is still in court and we can’t yet confirm the allegations. However, there is a need for the CBN to help restore the confidence in the banking sector usibg this as an example,” she added.

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