Bad loans, controversial acquisition, other issues behind Heritage Bank’s liquidation

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Subsequently, the CBN on 3 June revoked the banking licence of Heritage Bank Plc, raising questions about the fate of depositors and shareholders of the bank. It’s essential to acknowledge that news production incurs expenses, and we take pride in never placing our stories behind a prohibitive paywall.Meanwhile indications have emerged that bad loan, questionable acquisition deal and other corporate governance concerns may have worsened the condition of the bank, leading to its liquidation.

The relentless pressure led to the resignation of several key executives, including the MD and the Deputy Managing Director, who subsequently became the Acting Managing Director. The bank challenged the apex bank’s decision, leading to an Abuja Federal High Court order in April 2008 that compelled the apex bank to restore the operational permit after declaring that the bank met the minimum financial requirements to return to business.

“Consequently, appropriate machinery has been put in place to allow SGBN 30 days to meet the condition attached to the forbearance of 80 per cent of its huge debt to CBN as directed by the court,” it said in a statement. At the time, Leo Umana, executive director of enforcement and recovery, at Akwa Ibom State Internal Revenue Service, said the bank had 14 days to negotiate with the service and vacate the order.

“Someone has N20m in the bank and you pay them N5m until the assets of the bank have been assessed and liquidated. That is wrong. It is going to discourage people from using banks.

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Banking industry workers’ union expresses concerns over Heritage Bank staff’s futureThe union expresses concerns over the fate of its members in Heritage Bank, saying that they should not be unfairly treated.
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