GTBank Under Fire: House of Reps Launches Probe into Alleged Corruption, Money Laundering, and Fictitious Profit Reporting
In a significant development, the House of Representatives has initiated an investigation into Guaranty Trust Holding Company Plc (GTBank) and its Group Chief Executive Officer, Mr. Segun Agbaje, over serious allegations of corruption, money laundering, and fictitious profit reporting.
The probe was triggered by a petition submitted by Alhaji Yusuf Kabiru, President of Arewa Consultative Youth Movement, to the Speaker of the House, Hon. Tajudeen Abbas.
The petition, dated September 23rd, 2024, alleges that GTBank has engaged in deceptive accounting practices to artificially inflate profit figures, potentially undermining investor confidence and posing significant risks to the stability of Nigeria’s financial system.
Specifically, the petition claims that GTBank reported profits exceeding 1 trillion Naira without substantial evidence supporting such figures. Additionally, it alleges that Mr. Agbaje has utilized family members as fronts in various business dealings related to GTBank, raising ethical concerns about conflicts of interest and transparency within the bank’s operations.
Round-tripping activities, where funds are moved in and out through different accounts or entities to create an illusion of legitimate transactions, are also suspected. This practice is often associated with money laundering and other fraudulent activities.
Lawmakers are urging prompt action to investigate these allegations, ensure justice, and restore faith among investors and citizens in financial institutions. The Speaker has referred the petition to the House Committee on Public Petition for investigation.
The investigation is expected to include forensic audits and interviews with relevant stakeholders. Additionally, there are calls for Mr. Agbaje’s suspension pending the outcome of the investigation to prevent potential interference.
Regulatory bodies, including the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC), may be engaged to assist in the investigation and protect customers’ investments. The Nigeria Deposit Insurance Corporation (NDIC) has also been requested to take immediate steps to secure depositors’ funds at GTBank during this period of uncertainty.
This development highlights the need for increased transparency and accountability in Nigeria’s banking sector. As the investigation unfolds, stakeholders will be watching closely to ensure that justice is served and the integrity of the financial system is maintained.
The Street Reporters Newspaper reports that key stakeholders, including investors, customers, and regulatory bodies, will be keeping a close eye on the outcome of this investigation.
The probe’s findings will have significant implications for GTBank’s reputation, the Nigerian banking sector, and the country’s economic stability.
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