A comprehensive investigation report released by the Global Integrity Crusade Network (GICN) has raised serious allegations of “unscrupulous, unethical, and criminal activities” against Guaranty Trust Bank Limited (GTB), a subsidiary of Guaranty Trust Holding Company Plc (GTCO PIC). The findings, signed by GICN President Edwin Omaga, were made public on Friday and have sparked significant concern regarding the bank’s operational integrity.
Leadership Under Scrutiny
Guaranty Trust Bank is currently led by Segun Julius Agbaje, who has been serving as the Group Chief Executive Officer since August 2021. The GICN report emphasizes that the investigation was conducted in accordance with Section 24 (d) and (e) of the 1999 Constitution of Nigeria, aiming to combat corruption and promote transparency in the banking sector.
Founded on July 19, 1990, GTB has been a prominent player in Nigeria’s commercial banking landscape. The report indicates that the bank has a staggering 25 billion ordinary shares and is controlled solely by GTCO PLC, represented by Agbaje.
Unsolicited Account Openings: A Breach of Trust
One of the most alarming allegations detailed in the report is the practice of unsolicited account openings. The GICN claims that over 10,000 customers have been unwittingly exposed to significant risks, as accounts were allegedly created in their names without their consent. This practice, which involves the bank sourcing personal information such as phone numbers and Bank Verification Numbers (BVN) to open accounts, raises serious concerns about data privacy and identity theft.
The report states, “The aim of this practice is to increase the customer base of the Bank, thereby giving it high ranking in terms of size, capacity, and profitability.” This unethical behavior not only compromises customer trust but also exposes individuals to potential financial crimes.
Questionable Financial Practices
The investigation further alleges that Guaranty Trust Bank has been fabricating misleading financial statements to create a façade of profitability. The report highlights that GTCO Plc recently announced a profit before tax of over ₦1 trillion for the period ending June 30, 2024, a figure that the GICN claims lacks credible evidence and may have been inflated through dubious practices such as roundtripping.
The GICN warns, “Such ugly situations, if not properly checked, could undermine customers’ and investors’ confidence in the Bank and pose significant risks to the stability of the Nigerian financial sector.”
International Sanctions and Regulatory Breaches
The report also sheds light on GTB’s troubled reputation abroad, revealing that the bank has faced severe penalties for various violations in international markets. For instance, Guaranty Trust Bank (UK) Limited was fined £525,000 by the UK’s Financial Conduct Authority (FCA) for breaches related to management and control. Another substantial penalty of £10,959,700 was imposed for failing to implement effective anti-money laundering controls, which was later reduced to £7,671,800 after an early resolution.
In Ghana, the bank’s foreign exchange trading license was suspended for one month due to multiple breaches of foreign exchange regulations, raising further questions about its operational integrity.
Call to Action: Regulatory Bodies Must Intervene
The GICN has made several urgent recommendations, including the immediate dissolution of the board and management of Guaranty Trust Bank to facilitate thorough investigations. They have called for the suspension of Segun Julius Agbaje as Group CEO and urged regulatory bodies such as the Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), and others to take decisive action against the bank’s management.
Moreover, the report calls for public hearings where Agbaje would be summoned to address the serious allegations outlined in the investigation. The GICN has also urged international bodies, including the UK National Crime Agency and the US Department of Justice, to scrutinize GTB’s operations in their jurisdictions to prevent potential money laundering and other economic crimes.