BY PETER EGWUATU
Stakeholders in the financial sector and Delta State Board of Internal Revenue (DBIR) have warned the Central Bank of Nigeria (CBN) to improve its surveillance on banks in order to avert irregularities in the banking sector especially as the nation transcend to a cashless economy.
The warning is coming after the DBIR indicted Diamond Bank Plc and Union Bank Nigeria Plc over unethical banking procedures.
During investigation by Vanguard on the matter, a source within Union Bank said, “ DSIR is aware that Union Bank did everything within the transfer of procedures to remit the funds in question. What was credited to the Board of the DSIR may have been informed by lack of the fact at that time. We believe that the Board is now informed that Union Bank did what was expected within the circumstances and time frame of remittance advice”
CBN Governor, Sanusi Lamido Sanusi
Meanwhile, for Diamond Bank, it was gathered from source close to the bank that the issue between Diamond Bank and DSIR had been resolved. However, details of how it was resolved were not disclosed as Vanguard was informed that the Head of Corporate Affairs of the Bank and the Managing Director who are supposed to comment on the issue were on leave and out of the country respectively.
It will be recalled that DBIR, blacklisted Union Bank and Diamond Bank from the list of Internal Generated Revenue (IGR) collecting banks in Delta State for alleged unethical banking procedures.
Joel-Onowakpo Thomas, Executive Chairman of the Board said in his office in Asaba that the action was due to media reports of alleged N1.1billion missing from DBIR accounts.
According to him, an investigation was instituted and the findings implicated the two collecting banks for the State’s internally generated revenue (IGR), adding that “The Delta State Board of Internal Revenue wishes to inform the general public that, the board has black-listed Union bank and Diamond bank as IGR collecting banks for Delta state.
He alleged that the blacklisted banks had failed to remit N1.1billion tax revenue paid into its accounts several days after a multinational oil giant, Chevron Nigeria Limited, paid the money through the servicing banks.
“Hence forth all our accounts in Union bank and Diamond bank are hereby closed and all other business transactions terminated “We advise tax payers to use any of the board’s numerous accounts in other banks.”Any tax payer who deals with these two banks, does that at his own risk.”
He explained that the action became necessary after the two banks deliberately delayed release of fund paid by a tax paying organization. “Our preliminary investigation revealed that the said fund was not only delayed beyond the stipulated time as proscribed by the law, but also fell far below international best practice.”
He therefore called on the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to urgently investigate this issue to ascertain whether the conduct of these banks were in line with international best banking practices.
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