EFCC, Police Set to Prosecute Directors, Managers of Heritage Bank as NDIC Explains Delay in Payment

• The NDIC urged security agencies to investigate and prosecute the directors and managers of dissolved Heritage Bank
• It stated that this is needed to prevent similar events in the future, actions done by the directors and managers of the bank that went bankrupt
• This comes amid reports that some Heritage Bank customers are being delayed payment of their insured deposits

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigeria Police, the Economic and Financial Crime Commission (EFCC), and other security agencies in the nation have been urged by the Nigeria Deposit and Insurance Corporation (NDIC) to be prepared to prosecute the directors and managers of the recently dissolved Heritage Bank.

Mr. Bello Hassan, the Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), made this announcement on Thursday in Lagos during the law enforcement agencies' 2024 capacity development workshop.

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Daily Independent reported that the theme of the workshop focused on combating financial misconduct in Nigerian banks and other financial institutions.

He stated that in order to prevent similar incidents in the future, actions taken by the directors and managers of the bank that went bankrupt and required liquidation must be looked at.

He said,

“As you are all aware, the Central Bank of Nigeria recently revoked the banking licence of Heritage Bank PLC which may require you to be called upon to investigate some of the Directors, Managers and officers of this failed insured Institution to bring to book those found culpable in the collapse of this institution.

“Let me say at this juncture that we are not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases but wish to urge you not to relent in your efforts and be rest assured of our unflinching support at all times.”

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Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) has begun paying customers of the defunct Heritage Bank two weeks after the Central Bank of Nigeria (CBN) revoked the bank’s license.

A bank customer said he received the N10,000 left in his account with Heritage Bank.

Ayodeji Olowe, founder of the loan management system Lendsqr, reportedly said the NDIC deposited the money in his alternative account using his BVN.

NDIC Explains Delay in Paying Heritage Bank Customers

Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) has disclosed that account name differences in Bank Verification Numbers (BVN) linked to the alternative bank accounts of some Heritage Bank customers are delaying payment of their insured deposits.

The managing director of NDIC, Hassan Bello, disclosed this in an interview with the News Agency of Nigeria (NAN).

The NDIC boss said the corporation had paid a substantial amount to depositors of the failed bank without BVN issues.

Source: Legit.ng