It is now public knowledge that more than 12 days after the National Industrial Court of Nigeria (NICN) sitting in Abuja ordered Mohammed Al-Amin, a professor and managing director/chief executive officer of the Federal Housing Authority (FHA), to reverse the controversial suspension of Roland Igbinoba as the managing director/chief executive officer of FHA Mortgage Bank, this order is yet to be carried out, making pundits wonder whether the FHA boss is above the law.
While the matter remains unresolved, analysts and close watchers of events at the mortgage bank, who believe that Igbinoba has done a good job at the bank since his appointment in June 2013, say this should have been the time to consolidate on the gains of the last two years and take the bank to the point where it is able to seamlessly discharge its statutory duty of granting mortgage loans to the public. But the circumstance of Igbinoba’s suspension and the crisis it has generated are threatening the long-term fortunes of the turnaround programme that he has carried out within his two years at the helm of the bank, they add.
Igbinoba, a solid and tested mortgage banking professional and former MD of PISON Housing Company, a mortgage finance consultancy, was head-hunted in 2013 from his Lagos base to come and turn around the fortunes of the mortgage finance institution and change its loss position to profit. Upon resumption, Igbinoba reportedly met a most distressing situation. Among other anomalies, staff had not been promoted for close to two decades; morale was extremely low and regular banking best practices were almost completely absent; and the CBN threatened sanctions on account of the institution’s very low level of capitalization.
But Igbinoba came with a Midas’ touch. He introduced reforms such that the bank was recapitalized, and within six months of his mounting the saddle, the bank’s authorized share capital rose to N2.5bn from about N1bn and shareholders funds peaked at N2.9bn as at 31st December, 2013, up from N101 million figures. From a negative loss-making concern, the bank in
2014 posted unaudited Profit Before Tax figures of N226 million.
But in a letter dated June 2, 2015 and signed by Al-Amin, who doubles as chairman of the Board of FHA Mortgage Bank, Igbinoba was ordered to proceed on suspension so that several allegations raised against him could be investigated. Some of the allegations include observations on loans and advances granted by FHA Mortgage Bank Limited; the return of recapitalization houses already recognized by CBN back to FHA, and allegations of insubordination on account of Igbinoba’s insistence on not promoting ‘favoured’ deputy managers outside of due process. Igbinoba denied the allegations, saying, “None of the allegations against me is true.” He also queried the process of his suspension and sought redress through the law.
Following an exparte motion filed on Igbinoba’s behalf by his lawyer, Mr. C. Okafor, the court granted an order of interim injunction restraining FHA, FHA Homes and Prof Al-amin, their directors or agents, from implementing the June 2nd letter, signed by Al-amin to the applicant purportedly suspending Igbinoba from office. In other words, Al-Amin was ordered to reverse himself and immediately reinstate Igbinoba to his position.
But, in what analysts have described as apparent contempt of court, the FHA boss has insisted he would not reverse any of the decisions he has since taken.
In an interview he granted to a prominent national daily published on July 2, 2015, Al-Amin said the decision to suspend Igbinoba was taken by the Board because of the evidence of “mismanagement,” “corruption” and “abuse of office” against him. He insisted the suspension became necessary in order to save the bank from going under due to “the CEO’s operational and administrative inconsistency with regulations as well as his failure to take corrections or implement directives from the Board of Directors despite verbal and written admonitions.”
In a detailed response to the issues raised in the interview, Igbinoba refuted the allegations against him. He said, “Having brought the bank to some level of profitability and stability in the last two years, it came as a surprise when I received your letter of 2nd June, 2015 alleging amongst other things my refusal to implement your direct instructions and an impending collapse of the bank according to the CBN supervisory report.”
In the circumstance, Igbonoba had initiated contempt proceedings against Mohammed Al-Amin.
In another development, the applicant has also filed a Notice of Consequence of Disobedience of Court Order, at the National Industrial Court. The suit numbered NICN/ABJ/194/2015 and dated June 24, is warned Al-Amin of the consequences of disobeying the court order.
The notice reads: “Take notice that unless you obey the directions contained in this order, you will be in contempt of court and be liable to be committed to prison.”
Also warned in the Notice is Haytuddeen Awwal Atiku, the acting managing director of FHA Homes Ltd.
While Nigerians await the outcome of the court proceedings, analysts believe the ongoing crisis in the FHA is indeed a test case for the Buhari administration as they look up to President Buhari to take firm steps in taming corruption and impunity in the nation and promoting professionalism, excellence, due process and the highest standards of integrity in public service.
