BATTLING THE BURDEN OF HEATED CONTROVERSY , SHARP PRACTICES

  Amos Adetunji

Guaranty Trust Bank (GT Bank), a reputable financial institution that once had a consistent tradition of good performance, offered unique services, provided competitive edge and rewarded investors is now trapped in a vicious circle. The plain truth is that heated controversies, growing negative public perception and the untold story of investors’ misfortunes are raising big concerns for anxious stakeholders and depositors who are now on the edge.  This negative index has led to a backtracking of its great runs achieved by the bank in the last three decades of its establishment.  GT Bank  which used to  a very good case study of a successful indigenous business organization, particularly in the banking industry where nearly a hundred other financial institution have either closed down or were acquired by others is becoming a shadow of its former self  . Though , GTCO   as it   now called  is still   among the few with the fastest growth records in the industry, it is currently under a  serious competitive pressure and image crisis ,following series of allegations around the brand   .

 In recent times, and unfortunately too, this enviable brand equity and strong corporate image are , without any doubt, on the fast lane to the opposite direction. One issue that is giving its stakeholders sleepless nights is its weakened strategic capability in certain critical segments of the market where it once reigned supreme. And this is consequently impugning on profit engine, value creation and public perception even by those outside the banking sector.   This is why many observers had at different times, attempted to second-guess the bank’s policies and outcomes. In fact, some analysts are alleging that its corporate ethos has already been compromised, a situation that is generating heated controversies around this financial giant at the moment.  

The fear on the above allegation is understandable. When a company compromises its corporate ethos, it puts its credibility and future on line. No doubt, some heated controversies confronting the bank are capable are exacerbating the situation and messing up and threatening    the strong corporate image bequeathed to it by its founding fathers like Fola Adeola and late Tayo Aderinokun. Though not limited to this brand, the bank not unexpectedly is challenging some of the issues and claiming that they are unfounded, yet, GTCO has remained at the centre of the storms on several allegations. Some of these malfeasance border on frivolous deductions on its customers’ accounts. But beyond the above complaints, GTCO has been struggling and busy battling other series of heated controversies that are putting the brand’s image on line.

The bank is currently confronted with many heated controversies bordering on its credibility and image. The latest came up penultimate Friday when GTB reportedly claimed it had taken over Stallion Nigeria’s assets after the N13 billion judgment debt in suit HC/L/CS/2/47/2019 filed at a federal high court sitting in Lagos. The reports claimed that officials from Temilolu Adamolekun, the receiver/manager appointed by GT Bank, and court bailiffs took over the firm’s Victoria Island office and showroom containing several automobiles. 

 But Stallion Nigeria has already refuted reports that it is indebted to Guaranty Trust Bank (GTB) to the tune of N13 billion. The firm claimed that no such debt exists. In a press statement signed by the firm’s CFO, Samar Sapre, Stallion Nigeria described the publications as “false, mischievous and a ploy to smear the unblemished reputation” of Stallion.

At the international level recently, the bank was reportedly fined in UK over money-laundering failures. According to a report, Britain’s financial watchdog had fined the UK subsidiary of Nigeria’s Guaranty Trust Bank 7.6 million pounds ($9.3m) for what it says are further failures in its anti-money-laundering systems and controls. “These weaknesses were repeatedly highlighted to GT Bank by internal and external sources, including the FCA, but despite this, GT Bank failed to take appropriate action to fix them,” the Financial Conduct Authority said in a statement  recently  . The watchdog said GT Bank has not disputed the findings and agreed to settle, making it eligible for a 30 percent discount on the fine, down from the original 10.96 million pounds ($13.3m). “GT Bank’s conduct is particularly egregious as this is not the first time that the bank has faced enforcement action in relation to its AML controls,” the statement said. Financial watchdog says GT Bank, a repeat offender, has not disputed the findings and agreed to settle. Guaranty Trust Bank did not dispute UK findings that it had again failed to put in place, proper anti-money-laundering systems and controls and was fined. Gbenga Alade, Managing Director of GT Bank UK, said the bank takes its anti-money laundering obligations extremely seriously and noted with regret, the FCA’s findings, adding that the FCA found no instances of suspected money laundering. “We would like to assure all our stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps,” Alade said in a statement. But it appears the antisocial behaviour has refused to go away.

Last year, a similar controversy occurred between the bank and the Innoson Group. The Innoson Group vs GT Bank fraud case involves claims where plaintiff Innoson Motors claims that GT Bank owes Innoson Motors a large sum of money that after 22% interest compounded annually over several years totals ₦8.9 billion. Innoson Motors began its case against GT Bank in 2011 and the Nigerian Supreme Court ruled in favor of Innoson Motors’ claim against GT Bank. The most embarrassing issue is the claim by the company says that it is due to take over GT Bank in lieu of receiving its money. The scandal received publicity after the arrest of the Innonson chairman by the Economic and Financial Crimes Commission. Innoson took the dispute to the social media, with hashtags such as #BewareOfGTBank and #WhatIsWrongWithGTBank and gained appreciable milage.  The heated controversy allegedly put the bank’s on line in serious problem, leading to some investors selling their stocks in a hurry at a loss and taken their investments out of the bank    . While those heated storms might have impacted negatively on its corporate image, the financial impact might be difficult to be substantiated or measured.  However, investigations revealed that its customers are becoming  scared and switching over to their rivals while some selling off their shares to escape the sinking ship