– Keystone Bank is the last of three banks planned for sale by the Asset Management Corporation of Nigeria (AMCON)
– But there seems to be widespread anger in the government parastatal following its alleged plan to sell the bank to a coalition of some northerners
– The firm believed to have won was reportedly not part of the bidding for the purchase of the financial institution
There is said to be a level of disquiet among senior officers of the Asset Management Corporation of Nigeria (AMCON) as it allegedly plans to sell off Keystone Bank to some powerful northern politicians.
Premium Times reports that AMCON is prepared to announce new owners of the bank and there are allegations that its chairman, Ahmed Kuru, is to sell the bank to“a coalition of powerful northern interests, disregarding extant takeover provisions of AMCON in the process.”
A branch of the Keystone bank
The report said the bank, with about 160 branches, is to be handed over to a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, the managing director of Sigma Pensions Limited, except AMCON changes its decision.
The report also said the firm being favoured by AMCON did not participate in the bidding process and that this contradicts the basic requirements for public asset sale.
According to AMCON, 13 companies had submitted their expression of interests but none was picked.
It also claims many Nigerians would lose billions of naira if the sale is allowed as AMCON allegedly wants to sell the bank, formally Bank PHB, for about N25.1 billion.
This, it has been argued, represents only a fraction of the approximately N200 billion that AMCON paid to purchase the bank’s bad debts in 2011 and despite the fact that some of the firms that took part in the bidding process offered to pay more.
The bank, Mainstreet and Enterprise Banks, were handed over to other banks after a consolidation by the Central Bank of Nigeria (CBN).
The report quoted a source as saying: “It is very clear that all caution was thrown to the wind as a result of a grand plan to disqualify very strong and reputable intended buyers in order to allow the cronies and business associates of the managing director take over the bank.”
President Muhammadu Buhari appointed Kuru in August 2015, but there are allegations that he by-passed the laid-down rules to decide the new owners of the bank.
“It is an open secret within the banking sector in Nigeria that the sale was arranged for this powerful northern group whose promoters do not have the required banking experience, thereby raising questions about the supposed independence of the international advisers of AMCON in the sale of Keystone,” one of the sources reportedly said.
Atiku Abubakar, former vice president of Nigeria
The report said while Modibbo could not be reached for comments, Kuru, was yet to respond to questions posed by the reporter in an email sent to him.
The report however quoted Atiku’s spokesperson, Paul Ibe, as saying he did not know if the former vice president was involved in the deal.
Ibe suggested suggested that the opposition to his principal’s role by some AMCON officials might have been politically-motivated, according to the report.
Ibe reportedly said: “I am not aware if his Excellency is interested or is involved in Keystone Bank. But even if he is, does that disqualify him? Is it because he’s a former Vice President and an APC chieftain?
“Hasn’t he run businesses successfully? Created jobs? Delivered dividends to shareholders? Paid taxes?
“Who are those internally? Who are the people? Is it politicians who are mischief makers hiding under the cover of internal people?”
The report also said Ibe demanded an email from the reporter after learning that top officials released the information. He did not react to the message at the time of this report.
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