CEO jailed over loan crisis
(8 October 2010 – Global) One of Nigeria’s most prominent women has been handed a jail sentence over millions loaned by her bank in a case linked to a financial crisis in the oil rich nation.
The former chief executive officer the Oceanic Bank, Cecilia Ibru, was removed from her position, along with a number of executives from other financial institutions, in a bid to address the financial crisis.
Ms Ibru has been sentenced to six months in prison, as well as forfeiting funds and assets worth more than 190 billion naira (A$1.3 billion), the nation’s anti-graft agency said.
Ms Ibru’s sentence was the result of a settlement agreement, Judge Dan Abutu told the court.
She was sentenced to six months for three separate charges, but the terms were to run concurrently, with one charge reportedly the result of a 20 million loan.
He said the jail term would normally be more severe, 'but after listening to the two parties ... and taking cognisance of an amicable settlement agreement filed before the court, the sentence is reduced to six months.'
The details of the agreement were not spelled out.
Nigerian authorities removed top management from a number of banks last year amid a crisis and bailout that the central bank chief said stemmed in part from huge amounts of bad loans.
Ms Ibru has been sentenced to six months in prison, as well as forfeiting funds and assets worth more than 190 billion naira (A$1.3 billion), the nation’s anti-graft agency said.
Ms Ibru’s sentence was the result of a settlement agreement, Judge Dan Abutu told the court.
She was sentenced to six months for three separate charges, but the terms were to run concurrently, with one charge reportedly the result of a 20 million loan.
He said the jail term would normally be more severe, 'but after listening to the two parties ... and taking cognisance of an amicable settlement agreement filed before the court, the sentence is reduced to six months.'
The details of the agreement were not spelled out.
Nigerian authorities removed top management from a number of banks last year amid a crisis and bailout that the central bank chief said stemmed in part from huge amounts of bad loans.
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