CBN Probes Titan Bank Chairman Lemo and Executives in Union Bank Acquisition Inquiry

Infostride News reports that the Special Investigator of the Central Bank of Nigeria (CBN), Jim Obazee, has summoned Babatunde Lemo, the chairman of Titan Trust Bank (TTB), for questioning regarding TTB’s acquisition of Union Bank of Nigeria Plc (UBN). This development comes amidst allegations that certain individuals, acting as proxies for former CBN Governor Godwin Emefiele, were instrumental in establishing Titan Trust Bank and orchestrating the acquisition of Union Bank.

As per The Nation, Babatunde Lemo, a former deputy governor of the Central Bank of Nigeria, has been directed to appear at the Department of Force Intelligence in Abuja on Thursday, December 28. The scheduled meeting is expected to involve rigorous questioning regarding the details and circumstances surrounding the acquisition of Union Bank by Titan Trust Bank.

The promoters of Titan Trust Bank, Cornelius Vink and Rahul Savara, have also been instructed to join the TTB chairman in a meeting with the team of special investigators. The letter summoning Babatunde Lemo was signed by the head of operations at the office of the special investigator on December 24, 2023.

The special investigator’s report alleges that certain individuals, acting as proxies for Godwin Emefiele, played a role in the establishment of Titan Trust Bank and the subsequent acquisition of Union Bank. This revelation has prompted a deeper investigation into the entire transaction, with a focus on uncovering the truth behind the alleged connections and influences.

In response to the ongoing investigation and Babatunde Lemo’s defense, the special investigator issued a letter titled ‘RE: CBN Investigation Activities: Invitation for a Follow-up Meeting with the Special Investigator.’ The letter, dated December 24, 2023, questions Lemo’s defense and seeks clarification on statements made in the press on behalf of Titan Trust Bank.

The letter reads, “Please refer to your discussion with the Special Investigator earlier today regarding the offensive defense that your good self issued in PUNCH newspapers, on behalf of TTB which you chair, as well as the email you sent to the Special Investigator today wherein you tried to provide clarification on your reaction to the report on TTB.”

It further points out discrepancies in Lemo’s defense by comparing it to statements made under caution during previous interactions with the special investigator. The investigator expresses surprise at Lemo’s request regarding the shareholders, Cornelius Vink and Rahul Savara, stating that they were given an opportunity to clarify their share ownership in a letter dated August 28, 2023. However, the investigator claims that instead of honoring the invitation and providing the requested documents, a letter was received from the Company Secretary of Union Bank, Somuyiwa Sonubi, dated September 1, 2023, informing that Mr. Cornelius Vink was out of the country on medical grounds.

The letter also highlights Lemo’s suggestion in the press that Vink and Savara be invited to provide clarification on their share ownership within seven days, with the consequence of forfeiting their shares to the Federal Government of Nigeria in case of non-compliance. The investigator expresses surprise at this request, emphasizing that the shareholders had already been given an opportunity to respond, and no communication or requested documents had been received from them.

This latest development comes on the heels of a press release issued by Titan Trust Bank on Saturday, refuting the circulating reports of a special investigation into the Central Bank of Nigeria and the alleged illegal acquisition of Union Bank by TTB. In its press release, Titan Trust Bank provided a detailed account of the acquisition process, aiming to clarify the situation and address any misconceptions.

As the investigation unfolds, the financial community awaits further developments, and the Thursday meeting between Babatunde Lemo and the special investigators may shed more light on the intricacies of the Titan Trust Bank and Union Bank acquisition saga. Infostride News will continue to monitor and report on the unfolding events in this high-stakes financial investigation.