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The Nigeria Deposit Insurance Corporation (NDIC) has said it is
reviving its task force on financial crimes in order to strengthen its
prosecution of bank related fraud cases.

Umar Ibrahim, the acting managing director and chief executive
of NDIC, said bank directors who have abused their positions deserve to face
the consequences of their crimes.

Speaking in Lagos while receiving a team from the Financial
Malpractice Investigation Unit (FMIU) of the Nigeria Police Force, Mr Ibrahim
said the police and judiciary would need to do more to tackle financial crimes
in the country.

He said the task force will also tackle new cases that emerge in
the course of sanitising the financial sector. “This is without prejudice to
cases EFCC has been handling.”

Smooth operation

He added that the corporation will work to remove obstacles that
would hinder the smooth operation of the unit. “It is unacceptable and immoral
for people to go scot-free when it is found out that they have contributed to
failures in banks. Government is doing everything to rebuild confidence in the
financial system. More will be achieved when offenders are brought to justice,”
he said. He said the task force which was active during the military era would
be reconstituted in order to accelerate its activities.

“The law was repealed in 1999 and since then, the NDIC has been
left with a lot of cases that need to be prosecuted,” Mr Ibrahim explained.

The then military government promulgated the Failed Banks and
Financial Malpractices in Banks Decree in 1994 to accelerate the prosecution of
persons involved in banks and other financial crimes within 21 working days.
Until it was repealed in 1999 at the advent of democratic rule, a total of
2,464 cases were pending before the Tribunal comprising 2,332 civil and 132
criminal cases. A total of 716 cases were disposed off comprising 672 civil and
44 criminal cases.

The sum of N4.3 billion was recovered through the machinery of
the Failed Banks Tribunal, out of which the sum of N3.55 billion was paid in
respect of banks in liquidation. The NDIC as at the time the tribunals were
scrapped had refunded the sum of N5.8 billion to depositors of 35 banks which
were closed.

Legal obstacles

Assistant commissioner of police, Funsho Saheeb of the special
fraud unit said legal obstacles were always thrown in their path, in their
quest to investigate suspected offenders. “When we send out invitation to
culprits, the next thing we see is petition from their lawyers, copying the
Inspector General of Police questioning our right to invite their clients,” Ms
Saheeb said. She said lawyers use frivolous legal means to shield their clients
from investigation.