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Home > BUSINESS > Business News > Reps to InvestigateZenith Bank, Union Bank, Other Asset Managers, Over Non-payment of $7bn

Reps to InvestigateZenith Bank, Union Bank, Other Asset Managers, Over Non-payment of $7bn

By Orkula Shaagee, Abuja

The House of Representatives, yesterday resolved to investigate the failure to repay $7 billion disbursed by the Central Bank of Nigeria (CBN) to 14 global asset managers and their Nigerian counterparts.

This is sequel to a unanimous adoption of a motion by Abubakar Ahmad (APC-Gombe) at the plenary yesterday.

Moving the motion earlier, Mr. Ahmad said that sometime in 2006, the CBN disbursed seven billion dollars to 14 global asset managers and 14 Nigerian banks that were local partners to manage

He said that the asset managers and their Nigerian counterparts included Black Rock and Union Bank Nigeria Plc, J.P. Morgan Chase and Zenith Bank Plc.

Others are First Bank of Nigeria Plc; BNP Paribas and Intercontinental Bank Plc; USB and United Bank for Africa; Credit Suisse and IBTC Chartered Bank Plc; Morgan Stanley and GTB Plc; Fortis and Bank PHB Plc.

He said that CBN gave each asset manager and its Nigerian bank counterpart $500 million from the nation’s foreign reserves to manage.

The lawmaker said that six of the 14 Nigerian banks that received the said funds had either merged or been acquired by other banks under the oversight of the CBN.

He named defunct banks as Oceanic Bank, Intercontinental Bank, Bank PHB, FIN Bank, AfriBank and Diamond Bank Plc.

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