Liquidation of Fortis MFB adhered to statutory guidelines- NDIC

Nigeria Deposit Insurance Corporation (NDIC) said it followed statutory guidelines on the resolution and liquidation of Fortis Microfinance Bank (MFB) and the protection of interest of depositors.

The corporation said this in a statement   issued by director, Communication and Publication Affairs, Dr Sunday Oluyemi, that the initial efforts by regulatory authorities involved the setting up of joint CBN/NDIC Interim Management Committee (IMC) to manage the affairs of the bank toward stemming the tide of its mismanagement.

It said its initial efforts also included the protection of the interest of its depositors.

“The intervention by the IMC also included the payment of N2 billion released to it by the Committee of Governors of CBN to the bank’s depositors in order to ease the hardship being experienced by them,” the corporation said.

NDIC said the facts and figures behind the liquidation of the bank showed that its fortune began to decline due to mismanagement and abysmal corporate governance practices, making the CBN, in collaboration with the NDIC, to take several actions to address the bank’s deteriorating financial condition.

“The intervention of regulatory agencies in the resolution of the defunct Fortis MFB were in two phases.

“The first phase involved corrective and supervisory measures which eventually included the sacking of the Executive Management, dissolving the Board of Directors and the appointment of a joint CBN/NDIC Interim Management Committee (IMC) to temporarily manage the affairs of the MFB.

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