The House of Representatives has initiated an investigation into allegations of corruption and money laundering against Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO), and the bank. This follows a petition submitted by Alhaji Yusuf Kabiru, President of the Arewa Consultative Youth Movement, which raises concerns about alleged financial misconduct under Agbaje’s leadership.
In the petition, dated September 23, 2024, and presented by Hon. Nnamdi Ezechi during a plenary session, Kabiru calls for a forensic audit of GTBank, citing a questionable 1 trillion Naira profit, the alleged use of family members as fronts, and money laundering.
The petition urges lawmakers to act swiftly, not only to address the allegations but also to restore trust in Nigeria’s financial institutions. The House of Representatives is expected to carry out a thorough investigation into the claims as part of its efforts to maintain transparency and integrity within the banking sector.
“The allegations include fictitious reporting of profits amounting to 1 trillion Naira, utilization of family members as fronts for illicit activities, round-tripping practices, fraud, corruption, and money laundering. The allegations suggest that GTBank may have engaged in deceptive accounting practices to artificially inflate profit figures. Such actions not only undermine investor confidence but also pose significant risks to the stability of our financial system.”
“Fictitious Profit Reporting: It has come to light that GTBank may have reported profits that do not reflect its actual financial performance. Specifically, claims indicate that the bank reported a profit exceeding 1 trillion Naira without substantial evidence supporting such figures. Use of Family Members as Fronts: Credible reports suggest that Mr. Agbaje has utilized family members as fronts in various business dealings related to GTBank. This practice raises ethical concerns about conflicts of interest and transparency within the bank’s operations. Round-Tripping Activities: Allegations have surfaced regarding round-tripping—where funds are moved in and out through different accounts or entities to create an illusion of legitimate transactions. This practice is often associated with money laundering and other fraudulent activities.”
“The combination of inflated profit reporting and unethical business practices points towards systemic issues within GTBank that could be indicative of broader fraud and corruption. Given the scale of these allegations, there is an urgent need for scrutiny regarding potential money laundering activities facilitated by GTBank’s operations. In light of these serious allegations, we urge your esteemed committee to take immediate action by: Conducting a Thorough forensic Investigation: An independent investigation should be initiated to examine these allegations comprehensively. This should include forensic audits and interviews with relevant stakeholders.”
“Suspension of Mr Segun Agbaje: Pending the outcome of this investigation, we call for Mr Agbaje’s suspension from his position as Group CEO of Guaranty Trust Holding Company Plc to prevent any potential interference with the inquiry. Involvement of Regulatory Bodies: We request that both the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) take immediate steps to secure depositors’ funds at GTBank during this period of uncertainty. It is crucial that measures are put in place to protect customers’ investments from any potential fallout resulting from these allegations. We recommend you seek assistance in this investigation by engaging relevant regulatory bodies such as the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC).”
The Speaker, Rt. Hon. Tajudeen Abbas, who presided over the plenary session, referred it to House Committee on public petition for investigation.
