Polaris Bank Loses N26bn Loans Granted To 6 Ex-Directors Without Collaterals
Polaris Bank has lost over N26 billion in non-performing loans granted to six of its former executive directors without collaterals, an investigation by the International Centre for Investigative Reporting (ICIR) has revealed.
The loans were granted between 2012 and 2017 when the bank was still trading as Skye Bank. According to documents reviewed by ICIR, the directors obtained various sums in loans ranging from N3 billion to N7 billion each.
The beneficiaries include former Managing Director, Timothy Oguntayo who received N3.9 billion; Executive Director, Corporate Banking, Rasheed Yussuf – N3 billion; Executive Director, Lagos Commercial Banking, Funmi Ogunleye – N7 billion; and Executive Director, Public Sector Lagos, Tope Lawani – N6 billion.
Others are former Executive Director, Corporate Banking, Adeola Soares who got N6 billion and Executive Director, Specialised Lending, Babatunde Osibodu who obtained N3.5 billion.
All the loans are said to be non-performing as the bank has struggled to recover the monies years after they were disbursed against banking regulations.
ICIR reported that the loans were approved under questionable circumstances without viable collaterals attached, putting the bank at risk. The report highlights concerns about corporate governance practices under the past management.
Polaris Bank recently obtained a court order to recover properties used as collaterals for some of the loans. However, recovery efforts have been difficult as the properties are grossly inadequate compared to the sums granted to the directors.
The latest revelation comes a few months after a former Skye Bank Chairman Tunde Ayeni was prosecuted for alleged fraud involving over N5 billion. Ayeni and two others are facing charges of conspiracy and money laundering at a federal high court in Ikoyi, Lagos.
