Unity Bank Plc has invalidated the allegation of N7bn indebtedness charged against it by the special presidential investigation panel for recovery of public property (SPIPRPP)
The invalidation of the indebtedness by the Bank was brought to the notice of the NSE, the general public shareholders and stakeholders on Monday 27th May, 2019 as follows:
Unity Bank Plc (“Unity Bank or the Bank”) wishes to bring to the notice of The Nigerian Stock Exchange (The Exchange), the general public especially its esteemed shareholders and stakeholders that the Bank hereby refutes publications in the media against it by the Special Presidential Investigation Panel for Recovery of Public Property (SPIPRPP).
The Panel quoted Unity Bank to have owed some Ministries, Departments and Agencies (MDAs) of the Federal Government of Nigeria to the tune of N7bn. We want to categorically state that the allegation by the Panel is false and unfounded.
Unity Bank hereby clarifies that in September 2018, a team from the SPIPRPP visited the Bank as part of “special” investigation into the banking transactions of the government between 2009 to 2018. This culminated in a total of three 3 meetings held with the Panel OH January 24, 2019, on January 31, 2019 and February 6, 2019 within the premises of the Federal Ministry of Justice, Abuja.
At the meetings, the Panel requested the Bank to provide certain information and solely relied on the information provided for the “special” investigation. Throughout the review, the Panel refused to invite the MDAs to any of the meetings to corroborate the Bank’s records neither was any adhoc investigative process initiated to validate the SPIPRPP findings. Nonetheless, the Bank cooperated fully with the Panel.
The Panel in an earlier letter requested the Bank to accept culpability and pay off a certain sum deemed outstanding which the Bank objected and insisted on completing the reconciliation exercise on the basis that the claims presented against the Bank were unfounded. Instead, the Panel unilaterally halted the reconciliation exercise by refusing to admit further documentary evidence from the Bank establishing that there were no balances kept in its books for the MDAs.
The Bank’s reconciliation team were made to sign a register of attendance at every reconciliation meeting, and at no time did the team admit to any liability because the process was still on-going and inconclusive.
It is therefore surprising for the SPIPRPP to do a volt face and issue a statement alleging sabotage when it abandoned its sitting and investigation whilst reconciliation was still on- going with the Bank.
Furthermore, while noting the constitutional power of Revenue Mobilization and Fiscal Allocation Commission (RMFAC) as the sole agency of government to investigate, review, reconcile and collect revenue for government, Unity Bank co-operated fully with SPIPRPP and its consultants in the investigation process in demonstration of its non-culpability.
Throughout the process, the Baak acted in good faith and as a responsible corporate entity. The Bank therefore hereby states its commitment to prove that it does its banking transactions transparently and in compliance with extant banking regulations and at no time took charges on the MDAs outside the requirements of the Bankers Tariff, which guides banking operations in Nigeria.
It is instructive to note that Unity Bank transferred all the balances of the MDAs in its books to the Central Bank of Nigeria as far back as eoi6, in line with the directive of the Federal Government of Nigeria.
The Bank further reiterates that the allegations of SPIPRPP are unfounded. Unity Bank vehemently refutes these allegations as a misrepresentation of the Bank’s position in the reconciliation exercise.
We hereby call on our customers and the general public to disregard the allegations.