Lagos - Shareholders of Diamond Bank on Thursday expressed dissatisfaction
over the N7.99 million paid by the bank as penalties to the Central Bank of
Nigeria (CBN) in 2013.
The shareholders made their position known at the bank's 23rd Annual general
Meeting (AGM) in Lagos.
The bank during the financial year ended December 31, 2013, was penalised by
the CBN for several infractions.
A breakdown of the infractions showed that the bank paid a fine of N2
million for the delay in refunding a customer the sum of 827 223 dollars as
directed by the CBN.
It was fined N4 million for promoting two senior management personnel
without the approval of the CBN.
The bank also paid penalty of N1.99 million for withholding a customer’s
funds for 26 days after the promoters of the customer had written to inform the
bank that they were no longer interested in a facility.
Speaking at the AGM, Sunny Nwosu, National Coordinator, Independent
Shareholders Association of Nigeria (ISAN), urged the bank to “stop working for
Nwosu said that the bank should be more careful in the future to avoid waste
of shareholders' funds.
"The board should be careful not to waste shareholders' funds in meeting CBN
sanctions,” Nwosu said.
He also described as worrisome the N7.4 billion spent by the bank on
advertising and promotions during the period under review.
Nwosu said that the bank should be more prudent, stressing that such funds
could be converted to dividend payable to shareholders.
The shareholders, however, approved the payment of 30k dividend proposed by
They also authorised the board and management to float rights issue of $500
million or its naira equivalent to support the bank's operations.
Dr Alex Otti, the bank's Group Managing Director, said that the additional
capital would make the bank to be more competitive.
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