In an open letter to the President made available to The Pointer, former depositors of Heritage Bank have poured out their grief over what they described as an unwarranted closure of the bank and the evasive tactics of both the CBN and the Nigeria Deposit Insurance Corporation (NDIC) while making a passionate appeal to President Bola Ahmed Tinubu to intervene so as to ensure the prompt payment of their deposits.
The statement by the group known as “Heritage Bank Depositors of N5 million and Above”, under-signed by the following, Mr. N. Njoku, Mr. Omeje S. T, Hon. Chief O. Okorie, Ms. G. Okuntade and Shittu I.O, lamented to the President that failing to pay them their deposits “we are left in a state of financial distress, with our livelihoods and businesses hanging in the balance. We are mostly business persons and people in different occupations. Mr. President, it is therefore unfortunate that at a time you are making efforts to assist the citizenry, including business persons with palliatives and other forms of assistance, the CBN and NDIC have visited upon us a difficult existence without our hard-earned deposits.”
Meanwhile, Sir John Paul Chukwu, a major dealer in cosmetics, speaking exclusively to The Pointer in Asaba, said “the situation has affected me badly. I can’t procure new consignment, so I’m losing my customers by the day. To pay my children’s school fees has become a huge burden and I have a sick father who requires medical attention. All these require money and I can only take care of these needs if my business is going on smoothly.” Chukwu said he started banking with Heritage Bank about 15 years ago when it was Spring Bank, then Enterprise Bank. “I want the President to intervene by ordering the CBN Governor, Mr. Yemi Cardoso to pay me and all others affected, then they can take their time to settle with the NDIC so as to save our businesses and livelihoods”, Chukwu said.
The group’s letter titled: “A Passionate Appeal By Depositors of Heritage Bank With N5 million and Above”, was backed by the depositors of Heritage Bank numbering over 200 with N5 million and above. They said they want to bring to the President’s attention, a matter of utmost urgency and importance, giving a summary of the issue as follows, “on June 3, 2024, the CBN revoked Heritage Bank’s license, enabling the Nigeria Deposit Insurance Corporation (NDIC) to take over the bank’s assets and liabilities despite previous assurances by the same CBN that Heritage Bank was not in distress. Hence depositors have been left terribly stranded, unable to access their funds.
On impact on depositors, it said that “the situation has led to widespread economic hardship among us the depositors, with our businesses fast shutting down, life savings crumbling and daily expenses for even basic existence coming to a standstill. Some depositors among us have died from heart attack, while others are currently hospitalized. We are at a grave loss and our families, most pathetically our children are suffering.
“We are perplexed by the double standard exhibited by the CBN. Recently, Unity Bank merged with Providus Bank, ensuring a smooth transition of deposits. Furthermore, we are aware that First Bank was paid N460bn of its deposit in Heritage Bank before its liquidation. Why should we be treated differently, subjected to an everlasting process to recover our funds from the sale of Heritage Bank’s properties?”
Their plea to President Bola Ahmed Tinubu include a proposal “that the CBN extend a loan to the NDIC to facilitate the prompt settlement of depositors’ claims, with the expectation that the principal amount would be recuperated through the eventual disposal of Heritage Bank’s assets, thereby ensuring a seamless recovery process.”
“At the same time, we humbly request that you use your good offices to intervene and assist in resolving this issue. We urge you to direct the CBN to pay all depositors in full without further delay, advise a few other banks to absorb the depositors while ensuring a smooth transition, as was done in the case of Unity Bank and Providus Bank and utilize Heritage Bank’s Cash Reserve Ratio to settle depositors’ claims.
They also pleaded that all depositors be treated equally, as was done with First Bank as well as to “verify NDIC’s claim of paying the insured sum to 85% of depositors and ensure prompt payment to all eligible depositors.
“We believe that your intervention is crucial in resolving this crisis and bringing relief to the suffering depositors. We are confident that your leadership will ensure justice and fairness”, the open letter to the President concluded.
