Et tu Soludo?

It was public knowledge that Soludo was fully aware of these problems, but deliberately failed to take remedial action.  In fact, he embraced the financial shenanigans and hugely benefitted from the system. He cannot dismiss the widely held impression that he enjoyed special relationship with most of the Chief Executives of the banks, so much […]

It was public knowledge that Soludo was fully aware of these problems, but deliberately failed to take remedial action.  In fact, he embraced the financial shenanigans and hugely benefitted from the system. He cannot dismiss the widely held impression that he enjoyed special relationship with most of the Chief Executives of the banks, so much so that they manipulated their balance sheets to deceive unsuspecting depositors, shareholders and, indeed, Nigerians.

By the time his successor, Sanusi Lamido Sanusi, stepped into the saddle, the banking sector was already deeply in a mess, with huge loans granted without collaterals due to poor risk management, fraudulent investments, insider abuse, non-existing capital, collapse of stocks, all amounting to hundreds of billions of naira.

In Sanusi’s words; “A lot of capital supposedly raised by these so-called ‘mega-banks’ was fake capital financed from depositors’ funds”….the Special Purpose Vehicles (SPVs) furnished banks chief Executives with a leeway to lend money to themselves for stock price manipulations or the purchase of estates all over the world” And, Soludo shared in this massive corruption in the banking sector. Regarding the collapse of bank stocks, Soludo knew and saw the dangers coming. In fact, junior officers alerted the top Management of CBN, presided over by Professor Soludo. However, nothing was done.

Also the Nigeria Deposit Insurance Corporation (NDIC) documented its concerns to the CBN leadership, calling on the apex bank to act swiftly. That, too, was rebuffed and utterly ignored by Prof. Soludo. Consequently, the banks ended up owing a whopping sum of N1.5 trillion.

Apart from colossal damage caused by Soludo’s managerial lapses, the CBN under his charge recorded a series of fraudulent transactions, including the polymer contract worth N10 billion and a deal involving an Australian firm, Securency International Pty, for the production of N5, N10, and N50 notes where a N750million bribe scandal has not been refuted till date.

When Soludo left CBN in 2009, he had transformed himself from the modest Professor that he was, to a billionaire. Not surprisingly, he was alleged to have offered a bribe of N35 million to each of all the 46 contestants in the February 2010 gubernatorial elections in Anambra state, so that they could withdraw from the race.

Professor Soludo now flaunts his wealth around in a country with mass poverty, and where the average family is unable to afford three square meals a day. His recent statement that the Nigerian economy will collapse “if pre-emptive measures are not taken”, is an insult on Nigerians, especially as the Professor was responsible for the policies and actions that caused the unfortunate situation in which we find ourselves today. Soludo’s successor, Lamido Sanusi, is saddled with the task of reversing the situation.

The anti-corruption agencies of government like the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC) and others must ensure that people who have looted the nation’s treasury do not go unpunished. They must be held accountable for their actions and not be allowed to take undue advantage of the liberal disposition of Government. It is arrant nonsense and arrogance for Soludo to challenge the nation’s “presidential aspirants to debate economic issues” before the 2011 elections. He does not have the moral standing to make such a statement. In other climes, the likes of Soludo would be in jail! Or if, in China, he would have been shot.

Nkemdilim Osuagwu wrote this piece from Lagos and he can be reached on [email protected]