Over the past three days, a whirlwind of allegations has engulfed discussions about the ownership structures of Titan Trust Bank Limited (TTB) and Union Bank of Nigeria Plc. The focal point of these claims, reportedly stemming from a report presented to the President by Special Investigator Mr. Jim Obaze, has triggered widespread public interest in transparency. However, the absence of access to the report has catalyzed calls for an open and honest discourse to unravel the unfolding narrative.
The core accusations revolve around assertions that the former Central Bank Governor utilized intermediaries in acquiring Union Bank and doubts cast on whether Titan Bank adhered to the reported purchase price. To assess the gravity of these allegations, understanding the financial strength of the investors behind these financial institutions is crucial.
TGI Group emerges as a financial behemoth with assets surpassing ₦3.75 trillion and 2022 revenues exceeding ₦1.74 trillion. Notably, TGI’s 2020 sale of its subsidiary “Chivita” to Coca-Cola Group companies for over USD 500 million, nearly three times the purported equity element in the Union Bank acquisition, attests to the group’s financial prowess. The solidity of TGI’s financial standing serves as a testament to its stability.
Contrary to the accusations, documentation available to pertinent parties indicates payment for Union Bank shares was indeed made, raising doubts about the veracity of claims suggesting non-payment and emphasizing the necessity of verifying such financial transactions. Titan Trust Bank’s chairman, Mr. Tunde Lemo, strongly refuted the allegations made by the special investigator, providing details and names supporting the transparency and integrity of the transaction. This rebuttal challenges the credibility of accusations without substantive evidence, akin to questioning a transaction’s validity while concrete receipts stand as evidence.
The news of Mr. Lemo being summoned by the special investigator has sparked interest within the business community. The investigator’s reaction, labeling Mr. Lemo’s rebuttal as offensive, has raised concerns regarding the independence and impartiality of the investigation. The allegations against Mr. Lemo, a respected figure in the business community, have surprised many, considering his known dedication and commendable work ethic.
The scrutiny extends to Luxis and Magna, UAE-based holding companies accused of lacking a physical presence in Dubai. Yet, such corporate structures are commonplace in the global business arena. TGI’s financial backing of these entities underscores their credibility, emphasizing the importance of context in evaluating business practices. TGI affirmed that the acquisition process, managed by esteemed global financial institutions like Rothschild and Citibank, took years to complete. A USD 300 million loan from the African Export-Import Bank (Afrexim) and proceeds from TGI’s sale of Chi Ltd to Coca-Cola financed the Union Bank acquisition.
Allegations surrounding a “mysterious shareholder” providing interest-free long-term loans within the TGI Group context illustrate a standard business practice. This parallels established norms in global corporate structures, where loans within closely-knit business ecosystems are commonplace.
The allegations involving Mr. Cornelius Vink, the founder of TGI Group, require a balanced perspective. His cooperation in providing requested documents showcases a commitment to transparency, aligning with other reputable figures who willingly subject themselves to scrutiny in international business practices.
Regarding the purported recommendation for the government to take over Union Bank, questions arise regarding the financial stability of Union Bank and Titan Bank and the investigator’s apparent lack of statutory powers for such recommendations. This casts doubt on the credibility of this assertion, implying a challenge to a referee’s call beyond established rules. Mr. Obaze’s lack of statutory powers to make such calls appears to exceed his legal mandate.
Amidst this cloud of uncertainty, the imperative for transparency resonates deeply. TGI Group’s financial robustness supported by tangible evidence underscores the necessity for open dialogue to address the swirling allegations concerning the Union Bank/Titan Trust Bank transaction. These figures and comparisons signify the need for clarity in navigating this intricate financial narrative.
As the business community awaits the investigation’s outcome, unanswered questions linger:
1. Why did the Special Investigator opt for media engagement instead of conventional investigative or legal channels?
2. Is this an attempt to generate negative publicity for the banks, TGI, and involved personalities without substantiating evidence?
3. Why hasn’t the Special Investigator provided evidence supporting the claim that Mr. Godwin Emefiele owns the bank after an extensive investigation?
4. Why target and harass legitimate business owners and professionals?
5. Is the Special Investigator insinuating government willingness to seize private investments, especially at a time when the nation actively seeks foreign investment?
It is prudent for Mr. Obaze to remember that, rather than conducting a media trial, the burden of proof lies on the assertor: “affirmanti non neganti incumbit probation.”