Ethnic Youth Leaders Council of Nigeria has thrown its weight behind the move by the House of Representatives to probe the management of Guarantee Trust Bank (GTB) over alleged fictitious 1 Trillion profit and unwarranted deductions from customers.
The group specifically calls for the investigation of Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company and forensic audit of the bank over these allegations.
Recall that the House of Representatives had on Wednesday adopted a petition by the President of Arewa Consultative Movement, Alhaji Yusuf Kabir, demanding forensic audit of GTB and suspension of Agbaje to allow for holistic audit.
The group said that the integrity of the nation’s banking system is paramount for economic stability and growth in Nigeria.
It added that there must be accountability at all levels within the nation’s financial institutions.
Addressing newsmen in Abuja, Godwin Maliga, the Chairman, Middle Beth Forum and the President of Arewa Consultative Movement, Kabir Yusuf called on House of Representatives and the Economic and Financial Crimes Commission (EFCC) to conduct a forensic audit of Guaranteed Trust (GT) Bank’s financial records.
The call for a forensic audit of GT bank is coming on the heels of various allegations against the bank Group Chief Executive, Segun Agbaje, who was earlier hailed by Nigerians for making profits of 1 trillion Naira.
The group said: “About a fortnight ago, the Guaranty Trust Bank announced a whopping One Trillion Naira profit for the first half of 2024, the first company in Nigeria to announce such profits.
“This announcement attracted many commendations from industry and economic watchers. The acclaimed wizardry of Mr Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company, and his team were hailed.
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“However, that flurry of commendation was very short-lived. Allegations have surfaced against Mr. Segun Agbaje, the Managing Director of Guaranty Trust Bank (GTBank), and the institution itself. These allegations include money laundering, corruption, round-tripping, and questionable financial practices that warrant immediate attention from regulatory bodies.
“Allegations Against Mr. Segun Agbaje and GTBank Fictitious Profit Claims: Recent reports have indicated that GTBank may have reported fictitious profits of 1 trillion Naira. This raises significant concerns regarding the authenticity of their financial statements and whether these figures were manipulated to mislead stakeholders.”
Some of the allegations the group listed include, use of family members as fronts, round-tripping activities, corruption and money laundering, tax compliance issues and dividends to shareholders.
The group said: “There are claims suggesting that Mr Agbaje has utilized family members as fronts for various business dealings within GTBank. This practice raises ethical questions and suggests potential conflicts of interest that could undermine the integrity of the bank’s operations.
“Allegations have emerged regarding round-tripping—where funds are cycled through different accounts or entities to create an illusion of legitimate transactions. Such activities can be indicative of attempts to evade taxes or launder money.
“The council has received credible information linking Mr Agbaje and GTBank to broader networks involved in corruption and money laundering schemes. These activities violate Nigerian laws and tarnish our financial institutions’ reputation on a global scale.
“Questions have been raised about whether GTBank has fulfilled its tax obligations to the Federal Inland Revenue Service (FIRS). Transparency in tax payments is crucial for maintaining public trust in corporate governance.
“We also seek clarification on the dividend-paying pattern and whether dividends have been paid to shareholders despite these allegations, particularly if the profits reported were indeed fictitious.”
The group, has, however, called on “the House of Representatives to initiate a thorough investigation into these matters.
The Economic and Financial Crimes Commission (EFCC) to conduct a forensic audit of GTBank’s financial records.
“The Central Bank of Nigeria for the suspension of Mr Segun Agbaje from his position until a complete inquiry is conducted.
“These issues surrounding GTBank highlight critical challenges that must be addressed promptly and transparently. Stakeholders must demand accountability from financial institutions, while regulators must rigorously enforce compliance. The integrity of our banking system is paramount for economic stability and growth in Nigeria. We must ensure accountability at all levels within our financial institutions.
“We urge all relevant authorities to act swiftly in addressing these grave concerns so that justice can prevail and public confidence in our banking sector can be restored.”
