GICN calls for leadership overhaul at GTBank amid allegations of financial misconducts

An explosive report by the Global Integrity Crusade Network (GICN) has uncovered a series of alleged financial crimes and unethical practices committed by Guaranty Trust Bank Limited (GTBank), a subsidiary of Guaranty Trust Holding Company Plc (GTCO Plc).

The detailed report, originally reported by Sahara Reports,  signed by GICN President Edwin Omaga, points to severe violations under the leadership of GTCO Group Chief Executive Officer Segun Julius Agbaje, who has been in charge since August 2021.

The Private Investigation Report (PIR), carried out under Section 24 (d) and (e) of the 1999 Constitution of Nigeria, exposes multiple dubious activities that GTBank allegedly engaged in, raising alarms about the integrity of the financial institution.

According to GICN, these actions not only threaten the stability of the bank but also put the entire Nigerian financial sector at risk.

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Unsolicited Account Openings: One of the most alarming findings is that over 10,000 customers allegedly had accounts opened in their names without their consent, exposing them to risks of identity theft and financial crimes. GICN claims this was done to inflate the bank’s customer base and improve its market ranking.

Inflated Profits: GTBank is also accused of releasing misleading financial statements to deceive the public.

The report challenges the bank’s declared ₦1.004 trillion profit before tax for the period ending June 30, 2024, suggesting that the figure was artificially inflated through a practice known as round-tripping. This involves cycling funds through various accounts to create an illusion of legitimate transactions.

GICN claims that there is little evidence to justify the declared profit and that this pattern of deception has been recurrent under Agbaje’s leadership. The report states, “It is very possible that the figures were generated through round-tripping,” which has led to inflated profits and false market perceptions. The bank’s financial health, as portrayed in the June 2024 audited statement, is described as a façade, meant to mislead regulators, investors, and the public.

The report goes beyond Nigeria, highlighting international breaches in GTBank’s operations. In the UK, Guaranty Trust Bank (UK) Limited was fined £525,000 by the Financial Conduct Authority (FCA) for failing to maintain proper management and controls from 2008 to 2010.

More recently, in January 2023, the bank was penalized £7,671,800 for failing to implement effective anti-money laundering (AML) policies, a reflection of continued financial crimes under Agbaje’s tenure.

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In Ghana, the Foreign Exchange Trading License of Guaranty Trust Bank Ghana Limited was suspended for a month starting March 18, 2024, due to various breaches of foreign exchange regulations. These included fraudulent documentation in forex operations, further damaging the bank’s international reputation.

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The GICN report demands immediate intervention, calling on the Central Bank of Nigeria (CBN) to dissolve the current board and management of GTBank to allow thorough investigations.

It also calls for the suspension of CEO Segun Julius Agbaje, urging the CBN, the Economic and Financial Crimes Commission (EFCC), and other regulatory bodies to investigate the accusations of systemic corruption, fraud, and money laundering.

The report goes on to suggest that if found guilty, Agbaje should face similar consequences to those experienced by former Oceanic Bank CEO Cecilia Ibru, who was prosecuted for similar financial misconduct.

The allegations have far-reaching implications for the Nigerian financial sector, as GTBank has been a major player in the industry.

The potential erosion of customer and investor confidence could destabilize the broader market.

GICN also warns of the dangers posed by GTBank’s continued unethical practices, urging foreign governments, including the UK and the US, to shut down the bank’s operations in their territories to prevent further money laundering and other financial crimes.

Meanwhile, in a strongly worded rebuttal, the banking giant reassured its customers, shareholders, and stakeholders that it remains committed to transparency and excellence.

GTCO expressed concern over the continuous release of what it describes as “false news articles,” which it says are part of a coordinated effort by certain groups to undermine its reputation.

The bank emphasised that it has taken a swift legal action against those responsible for disseminating the false information.

“Being a responsible corporate citizen and a first-class institution, GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports,” the statement read.

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“We will continue to use the full extent of the rule of law available to safeguard our reputation.”

GTCO denied that its executive management is facing any form of financial or regulatory scrutiny, as falsely claimed in the reports, assuring that its leadership team will continue to operate in their full capacities as originally appointed – without any restrictions or issues.

GTCO urged its customers, investors, and stakeholders to disregard the allegations and remain confident in its operations and leadership. The bank expressed gratitude for the continued support and loyalty of its patrons, vowing to maintain its commitment to integrity and superior service.