FIRST BANK SACKS 100 WORKERS OVER ALLEGED FRAUD

FIRST BANK SACKS 100 WORKERS OVER ALLEGED FRAUD

First Bank has terminated over 100 employees and imposed an embargo on their accounts due to alleged fraud involving approximately N40 billion.

The bank’s actions are part of an effort to address the significant financial misconduct.

The N40 billion alleged fraud at First Bank was uncovered when a customer complaint led to an investigation by the bank’s internal control unit.

The perpetrator, Tijani Muiz Adeyinka, a manager authorized to process customer reversals, misused his access to allegedly divert funds into accounts he controlled, including those of his wife.

This scheme was said to have went undetected for nearly two years until suspicious transactions were reported, prompting the bank to notify the police and freeze implicated accounts

Two people with direct knowledge of the matter claimed that at least 120 employees, including full-time and contract staff of First Bank’s large operations department, were given termination letters in July. The head of transactions at the time was also fired.

Those employees were accused of laxity in carrying out their duties and were told they should have spotted the alleged fraud earlier. First Bank’s management team believed it was impossible for such alleged fraud of that scale and timeline to have been executed without the knowledge of Adeyinka’s superiors.

“The CEO said there will be zero tolerance for supervisory negligence,” said one First Bank employee who asked not to be named so they could speak freely.

The alleged fraud was first reported in May, showing how Adeyinka, who was the final line of authorisation on his team, carried on his scheme unnoticed for two years. When the incident was discovered in March, the bank tried to keep the matter under wraps, suspending several operations team members indefinitely. However, First Bank became more aggressive after the fraud became public.

Several employees were questioned by the Nigerian Police Force (NPF) and detained at the Lion’s Building for at least six hours, one person with direct knowledge of the incident said. Those employees needed to post bail before they were released. Restrictions have been placed on all their personal accounts except their First Bank accounts.

First Bank’s CEO at the time, Dr Adesola Adeduntan, abruptly resigned in April, eight months before the end of his tenure and less than a month after the alleged fraud was uncovered. Adeduntan, who led First Bank for nine years and “left to pursue other interests,” was initially replaced as CEO by First Bank’s board in April 2021.

The Central Bank blocked that move, claiming First Bank’s board acted without regulatory approval. It paved the way for Dr Adeduntan to serve an unprecedented third term. It was alleged that his tenure led to his resignation in April.