Missing N1bn IGR: Delta fires Union, Diamond bank

The sledge hammer, yesterday, fell on two banks - Union Bank and Diamond Bank, as the Delta State Government blacklisted them as revenue collection banks in the state for what it described as unethical banking procedures. Besides, the state government, through the Delta Board of Internal Revenue (DBIR), called on the Central Bank of Nigeria (CBN) to investigate the affected banks to establish, if standard banking procedures are followed in their dealings with customers funds.



Executive Chairman of the board, Thomas Joel-Onowakpo who announced the government's decision in Asaba, stated that several warnings had been issued to the banks in respect of holding to revenues collected without remitting to the portal of the board. According to him, the last straw that broke the camel's back was the N1.1 billion paid into Union Bank by Chevron Nigeria Limited (CNL) for onward transfer into the board's account in Diamond Bank. He said the money was paid to Union Bank on December 27, 2012, adding that the bank allegedly held on to it till December 31 before making the transfer to Diamond Bank. Onowakpo alleged that the fund entered the board's account at 12.16pm on January 7 after IT had raised the alarm that the money was being trapped somewhere.

'The most worrisome aspect is not keeping the funds but the denial by the two banks that the money was not with them. It is obvious that the banks did not leave up to expectations and both banks are liable. 'Having issued out several warnings in the past in respect of this practice of holding on to the board's money, it is with heart filled with sympathy that we are using the two banks as scapegoats to serve as deterrent to others who are involved in the unwholesome practice.

'If we have to survive in this harsh environment, we have to blacklist the two banks as our revenue collection banks. That means that our accounts with the two banks have been closed with immediate effect,' he stated. Management of Diamond Bank Plc and Union Bank Plc had before now been trading blames over the whereabout of the money.

While Union Bank was insisting that the money was successfully transferred into DBIR account with Diamond Bank, Diamond Bank on the other hand said that the fund was yet to get to it.