[EXCLUSIVE] Licence revocation: ‘We’re being stigmatized, living on borrowed funds,’ Ex-Heritage Bank employees cry out, make demands [VIDEOS/PHOTOS]
Some staff of the recently liquidated Heritage Bank on Thursday stormed the National Assembly in Abuja to protest delayed payment of their (and customers) funds trapped in the Bank since its shutting down on Monday, June 3.
According to the former employees, their protest to the National Assembly was to implore the lawmakers to prevail on both the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to allow the customers and former employees of the bank immediate access to their funds.
Ex-Bank staff protesting at the National Assembly yesterday.#Blord #Ogechi #PRELEMI #23rdyokoyosterday #RutoMustGo #heatwave #Hardikpandya #Crowdstrike #Drisey pic.twitter.com/GVXLE79qxh
— NewsClick Nigeria Media (@NewsClickng) July 19, 2024
NewsClick Nigeria reports that the Central Bank of Nigeria (CBN) had on that fateful day (Monday, June 3) revoked the operational license of the bank citing failure of the board of directors of the defunct bank to improve its financial performance.
Announcing the decision of the apex bank to revoke the bank’s licence, Acting Director, Corporate Communications, CBN, Hakama Sidi Ali, in statement, said: “The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.
“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The board and management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability. This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.
“Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020,” the statement read in part.
Potential employers stigmatizing us, we live on borrowed funds
However, six weeks after the bank was shut, neither the customers nor ex-staff of the bank have been able to retrieve or access their funds.
One of the ex-employees who identified herself as Constant and spoke exclusively with NewsClick Nigeria said aside not being able to access their funds and living from hand to mouth, they (the ex-employees) also face stigmatization from potential employers who refused to hire them because they earlier worked with a ‘dead’ bank.
“It’s as bad as we going for job interviews in other banks and the interviewers telling us they can’t employ us because we are coming from a dead bank. They’ll say your customers are angry with you, so how will you get funds to bring to us? They’ll end the interview with the usual we’ll get back to you and we know ourselves they won’t. That’s a little of the stigmatization we’ve been subjected to since the license revocation,’ she explained.
Recalling how NDIC officials stormed their bank without prior notice on June 3, Constant said majority of her colleagues had to borrow money to return home.
“On Monday, 3rd June, NDIC officials stormed our office saying they came to check our records over customers’ earlier complaints of payment transfers not going. Few hours later, say around 1oam, they said they are no longer for record checking but outright liquidation. They told us to pack our belongings and leave the bank premises immediately. We then started to make efforts to withdraw funds from our various accounts only to discover everything Heritage Bank was non-existence. You can’t transfer, withdraw or make payment. We all had to rally round ourselves that day to source for transport fare back home. Is this how banks are supposed to be shut?,” she queried.
Speaking further on efforts to retrieve their trapped funds, she said: “We all went home thinking it was a temporary challenge. You won’t believe that from that June 3 to this very moment, neither we the former staff nor customers have accessed our funds. As it stands, we can’t access HMO, or any other benefits. And we are still bonafide members of staff (3,000 of us) because our appointment has not being officially terminated. We have all been leaving on borrowing from then till now and there’s a limit to how much you can borrow to avoid insults.
“We went to NDIC office at Utako few days back to ask about our payments, they categorically told us that all staff related accounts are not insured and only depositors will be paid. Even the depositors won’t get above five million Naira according to them. They said those having above N5m will have to wait till when the defunct bank’s assets are liquidated before getting refunds. What happens to High Network Individuals (HNIs) banking with us that have projects running? These customers are daily requesting for their funds from us because we are the one they do business with, not CBN or NDIC.”
The ex-bank staff are amongst other things, demanding the following; That the CBN directs NDIC to speed up the process of making payment to all customers; immediate access to funds trapped in our savings, salary, domiciliary and fixed deposit accounts; payment of severance package for years of service to Heritage Bank; payment of June salaries.
Meanwhile, efforts by NewsClick Nigeria to reach Acting Director, Corporate Communications, CBN, Hakama Sidi Ali and Director, Communication & Public Affairs, NDIC, Bashir Nuhu for comments was unsuccessful as at press time as repeated calls to their mobile lines was neither picked nor returned.
