Fresh concerns have emerged over the leadership and corporate governance of SunTrust Bank Limited following reports of resignations involving a non-executive director and six senior management officials, at a time when two of the bank’s top executives are facing money laundering charges brought by the Economic and Financial Crimes Commission (EFCC).
The unfolding developments have reportedly deepened divisions within the financial institution, with questions surrounding its ownership structure, internal decision-making and recapitalisation arrangements becoming major sources of disagreement.
This newspaper gathered that Arho Akpe, a longstanding non-executive director of the bank, recently tendered his resignation amid growing dissatisfaction within the institution’s leadership.
His reported departure comes alongside claims that six senior officials have also submitted resignation letters, although the bank’s board is said to have withheld formal acceptance of their requests.
The circumstances surrounding the reported resignations remain unclear, but insiders suggest they are connected to unresolved disagreements over the direction of the bank and concerns about its corporate governance practices.
Efforts are underway to prevent further departures, with board chairman Olanrewaju Shittu and influential director Mohammed Barde reportedly engaging the affected officials in discussions aimed at persuading them to remain.
The latest developments come against the backdrop of an ongoing criminal prosecution involving SunTrust Bank’s Managing Director and Chief Executive Officer, Halima Buba, and its Executive Director and Chief Compliance Officer, Innocent Mbagwu.
The EFCC had arraigned both executives on a six-count charge relating to alleged unlawful cash transactions and money laundering involving approximately $12 million.
The transactions have been linked in the allegations to businesswoman Aisha Achimugu.
The charges remain allegations before the court, and the defendants are presumed innocent unless proven guilty.
While the criminal proceedings concern specific financial transactions, the reported internal disagreements have brought wider questions about the bank’s governance arrangements into focus.
Particularly contentious, according to sources, is the alleged influence of Mohammed Barde over the institution’s ownership and management decisions.
Insiders claim that Barde holds or exercises control over approximately 70 per cent of the bank’s equity through a combination of direct interests and shares allegedly held by other individuals on his behalf.
Nevertheless, sources say the alleged concentration of influence has become a point of contention among some directors and senior officials, particularly regarding the level of independence exercised in major corporate decisions.
Questions have also reportedly arisen over the bank’s recapitalisation arrangements, including the sources of funds deployed to meet applicable regulatory capital requirements.
The concerns are said to have contributed to tensions within the institution, although no publicly verified finding has established wrongdoing in connection with its capital-raising activities.
The situation presents a potentially sensitive period for SunTrust Bank, given the importance of management continuity, regulatory compliance and depositor confidence in Nigeria’s banking industry.
Under the Central Bank of Nigeria’s corporate governance framework, financial institutions are expected to maintain effective board oversight, transparent ownership arrangements and appropriate safeguards against conflicts of interest.
Any verified governance breaches would therefore raise questions requiring regulatory attention.
With the EFCC prosecution involving two senior executives still unresolved, the reported leadership tensions have added another dimension to the scrutiny surrounding the bank.
Attention is now likely to focus on whether the institution formally acknowledges the reported management changes, clarifies its ownership arrangements and addresses the governance concerns attributed to insiders.
