Few years ago, TheNiche investigated a story involving a Nigerian bank. I had cause to call the Corporate Affairs Manager for clarification of certain grey areas, and to my greatest surprise, rather than deal with the issues in question, he asked whether the story was meant for publication.
When I answered him in the affirmative, he proceeded to ask if I would lose anything by not publishing the copy. I told him my organisation would lose everything: the confidence, trust of our teeming readers as well as market value.
My take was that the Corporate Affairs Manager was more interested in protecting his job and certain interests than the overall interest of his organisation and mine, and by extension, the common good of the public we all serve.
The conversation took place on a Friday, and needless to say that on Sunday, TheNiche made the story its lead copy and by the time it had been read, my phone almost crashed due to the unending calls I was receiving, even from unexpected quarters.
One of those who called me happens to be an Executive Director of another bank. He had asked: “Oguwike, you mean you got across to the Corporate Affairs Manager and there was nothing he could do to stop that story?” Note the phrase in the Executive Director’s comment, “stop that story.”
One week after, the bank sacked the Corporate Affairs Manager in question. That is how sensitive issues on banks can be, depending on what is at stake and the interest involved.
I must confess that the above topic was not on my radar for this week. While driving from where I reside in Ogba area of Lagos on Monday, so many issues raced through my mind, and competed for space on this column as I waded through the potholes-riddled streets and roads on the way.
One issue that kept ringing the bell in my head was the state of roads in Lagos and the irritating potholes that are now competing with the number of vehicles, motorcycles and tricycles in Lagos without any signs the authorities are prepared to do anything about them.
I hear Lagosians will have to live with the poor roads and broken down streets across the nooks and crannies of the state as well as grapple with the biting gridlock till, perhaps May 2019, when a new governor would emerge in Lagos.
Governor Akinwunmi Ambode who, at least, would have dealt with the menacing poor state of roads and impassible streets in Lagos, from all indications, may not consider that as a priority now because his position had been given to another person in the spirit of murky waters of politics. Suffice to say that if Ambode decides to attend to the poor state of roads and broken downs streets in Lagos now, it can only be a Christmas gift to Lagosians.
Unfortunately, many think that as a lame duck governor which Ambode has now become, it would be foolhardy on his part to be worried about a state whose residents did not see anything good in his being nominated for a second term in office, now attempting to improve on the state of their roads infrastructure.
The other issue that tasked my mind was the role of Nigerians (both the leaders and the led) in the poor state of our roads.
On this particular score, I could not but recall the shoddy manner a contractor who got the repair work of a 200-meter street at my office on Allen Avenue, Ikeja did the work which, one week after he delivered it, got bad again.
While the work was going on, the so-called contractor was always sauntering in around 6 pm with different ladies stashed in his car to dish out instructions to his workers many of us agreed were at best, apprentices on construction matters.
For nearly one month the contractor was struggling with the job, sand, chippings, blocks, irons rods and woods (only God knows their quality) were heaped on every available space that caused residents of the area so much stress and pains.
Trust Nigerians, the day the contractor eventually brought asphalt and announced he was ready to hands off the repair work and invite Ambode for inspection and commissioning, excitement took over the sense of reasoning of the residents and landlords, and they suddenly forgot the shoddy manner the work was done.
And like I said, it took only one week before potholes showed up on two major spots on the street which today, with the rainy season, have become more magnified and causing traffic nuisance.
My take as I further ruminated on what to write was that Nigerians are also their own enemies. Why would contractors who get jobs to repair roads and streets feel content delivering shoddy works they were paid millions of Naira to do? Why should they get the buy-in of members of the public who witnessed all the efforts to undermine them and the system? Why would anyone tally along with rogue contractors, both of who will turn around to blame the government for doing nothing concerning our road infrastructure?
Suddenly, I remembered the Diamond Bank’s ordeal and concluded that until and unless Nigerians resolve to do the right things our lot would be difficult to improve – politically, economically, socially, culturally and otherwise.
Last month, Diamond Bank announced the resignation of its Board Chairman, Oluseyi Bickersteth, and three non-Executive Directors, Rotimi Oyekanmi, Mrs. Juliet Anammah and Mrs. Aisha Oyebode. Their resignation was unexpected.
In the letter tagged “Resignation of Chairman and non-Executive Directors” where Diamond bank notified the Nigerian Stock Exchange (NSE) and the public it said: “They have resigned from the Board of Diamond Bank Plc with immediate effect.”
“The directors are resigning for varied personal reasons, which will include focusing on their priorities. Diamond Bank will update the market with any further developments in due course,” the letter signed by Uzoma Uja on October 24, 2018 said.
The resignation got tongues wagging, particularly as the chairman was appointed not too long ago. Bickersteth was appointed in June, 2018 to replace Chris Ogbechie. With his resignation, the assumption was that Bickersteth-led board was having issues with the original owners of the bank based on business interest.
Be that as it may, customers of Diamond bank also started making inquiries to be sure there was no problem big enough to affect their investment.
Reports were also awash of investors – The Carlyle Group and Kunoch Holdings – who pulled out of the bank, but Diamond Bank denied it had any negative impact on the business until last week when it conceded that it is in talks with potential investors, apparently on how to shore up its capital base.
In a statement from Ezechinyere Anyanwu, Media Relations Officer, Corporate Communications Diamond bank said: “The Board of Diamond Bank Plc (Diamond Bank or the Company) notes the media speculation relating to comments attributed to its former Chairman, Mr. Oluseyi Bickersteth.
“Contrary to such media articles, the Board wishes to clarify that the Company has not received an offer from an investor to inject cash.
“Further to the Company’s announcement of 26 October 2018, Diamond Bank and its Board of Directors continue to review all strategic options on a regular basis.
“Diamond Bank would also like to clarify it enjoys the support of its major shareholders, including The Carlyle Group and Kunoch Holdings who are, as ever, working in cooperation with the Board and management as appropriate to ensure the successful operation of its business in Africa’s most dynamic banking market.
“Further to the announcement of 24 October 2018, Diamond Bank is in active discussions with regards to the appointment of new non-executive directors to the Board and, subject to CBN approval, these will be announced in due course.
“Diamond Bank’s recent Third Quarter results published on October 26, 2018 show the business continues to execute its clearly articulated tech-led retail strategy despite headwinds in the Nigerian economy.”
But it appears the bank has continued to be economical with the truth as the recent topnotch resignation was connected to certain business interest, involving ownership and investment interests of other stakeholders, The Carlyle Group and Kunoch Holdings inclusive.
In the course of the acquisition/merger saga, I was shocked to hear from a former senior staff of the bank who resigned to join another new generation bank that Diamond bank is challenged beyond what we know.
Not only did the former staff say that the two major investors have pulled out of Diamond Bank, it was learnt that the closure of the West Africa and United Kingdom Branches in April this year were connected to humungous difficulties the Uzoma Dozie-led bank is facing.
There are insinuations that the major investors and the board members quit because the founder of Diamond bank, Pascal Dozie wants his son, Uzoma to play a key role on the board.
Unfortunately, the members do not trust Uzoma’s capacity to deal with the mirage challenges the bank has been having over the years now which includes the billion Naira non-performing loans and dwindling capital base, all of which have affected the bank’s profitability and corporate image.
It is on record that for five years, apparently the whole period Uzoma has been in the saddle as Group Managing Director/Chief Executive Officer, Diamond bank has not been able to pay dividend to its shareholders. Centurion Registrars that manage the bank’s shareholding portfolio does not have the cash-backing to deal with dividend issues.
As I write, other personnel resignations are going on in Diamond bank, though secretly. Some of the staff have continued to hint to their clients (customers) and relatives to monitor their investment closely despite the fact that I got it on good authority that the depositors funds are save. That much the Central Bank of Nigeria had assured, and which was corroborated by the former staff who spoke to me.
Is Uzoma Dozie a problem now in Diamond Bank? Many think he is, including majority of his personnel. I was informed that not long ago, Uzoma tweaked some aspects of what people know as retail banking by concentrating major transactions on that at the bank’s headquarters. Following from that, Diamond bank lost prime customers to its competitors who could not go to the headquarters to transact retail banking businesses.
Regardless of the so-called investment on information technology, there are still aspects of transactions in Diamond bank that cannot be done at the branches, as another staff of Diamond Bank revealed to me.
But why would a Pascal Dozie, a doyin of the banking industry, insist on entrusting a bigger role on Uzoma who does not seem to have all it takes now to navigate Diamond Bank out of deep sea? The answer is simple. The Dozies appear afraid they would lose a hold on a bank their Patriarch founded and laboured so much to sustain.
If our society is not such where individuals are expected to be stronger than institutions, Pascal would be at the forefront of the move to give his son another save landing role for the sake of a project that is expected to outlive him and generation unborn. The question is: can he afford to sacrifice Diamond Bank on the altar of Uzoma’s self-interest or even the personal interest of the Dozies?
In Nigeria, people are expected to eat their cake and still keep it. I am sure there were people who kicked against the appointment of Emeka Onwuka, Pascal Dozie’s nephew as Diamond Bank CEO the way they probably kicked against the coming of Uzoma.
Is it not high time Diamond bank was entrusted in the care of faces outside of the Dozies and their extended family members? I mean bankers who are better tested, more experienced, rugged, rough and foresighted turnaround banking artists for the sake of posterity? And they are available. Obviously, one cannot do the same thing all over again and expect a different result.
The story of Access Bank touted to be in the race of financial institutions aspiring to acquire not even merge with Diamond Bank appears incredible. Why? Diamond Bank used to be ahead of Access Bank, even up to the time of Alex Otti as Managing Director when Diamond bank was rated about number five in Nigeria.
Painful as it sounds, truth is, Diamond Bank is up for grabs. And Access Bank is in the race with other banks. Forget that both banks have denied the ongoing discussion which was leaked to their embarrassment.
As the former Diamond Bank staff told me, the Polaris Bank treatment that arose from the death of former Skye Bank will surely apply to Diamond Bank because it can no longer continue to paper over its challenges. The bank seems to have been put on notice several times by CBN to do the needful as the regulator is now hamstrung in leaving its borrowing window open always for Diamond Bank without the books added up expectedly.
Yours sincerely is one of those who will not be happy to witness the demise of Diamond Bank. I am not the only customer passionate about the bank and would want it to weather the storms and remain a going concern. But I will also not be foolish to say the needful should not be done to remediate whatever damage may have been done to the image and nourishment of Diamond Bank.
If shoving Uzoma aside having been in the saddle since 2014 is one of the first steps so be it. The future of Diamond Bank and its survival should be paramount in whatever direction the talks on its survival go. Whatever measures are taken to stem Diamond Bank’s string of setbacks are welcome.
