GTCO Plc: Stakeholders Address Allegations of Misconduct

GTCO Plc: Stakeholders Address Allegations of Misconduct

The Stakeholders and financial industry experts have reacted to the series of allegations against Guaranty Trust Holding Company (GTCO) Plc. Global Integrity Crusade Network (GICN), a civic organization, released a Private Investigative Report on Friday, September 4, 2024, alleging a number of “unscrupulous, unethical and criminal activities” against Guaranty Trust Bank Limited, the GTCO group’s flagship subsidiary. The report was signed by GICN President Edwin Omaga.

The GICN leadership was shown in a lengthy press conference during the report’s active circulation on social media. The report featured severe accusations of corporate wrongdoing, to which a large number of social media users responded angrily.

But GTCO has denied the accusations and called the report untrue. The renowned financial services group said that GICN set out to create a false narrative about the GTCO brand and its management in a statement provided to THEWILL by Charles Eremi, GTCO corporate communications.

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According to the statement, “GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports as a responsible corporate citizen and a first-class institution,” and “We will continue to use the full extent of the rule of law available to safeguard our reputation.”

“Based on the incessant release of false news reports on GTCO’s business activities, results, and management team, it has become necessary to set the records straight and dispel attempts by certain groups to create a false narrative about the GTCO brand and its management.

“The false news articles, which are being sponsored using the media, center around baseless allegations against the group’s business activities and its executive management.

“We urge all our customers, shareholders, and stakeholders to kindly disregard all the allegations being peddled through various media platforms and handles. All of our executive management team continue to operate in their full capacities as appointed and are not under any financial or regulatory scrutiny as alleged,” the statement reads.

An investment expert and chairman of the Trusted Shareholders Association of Nigeria, Alhaji Mukhtar Mukhtar, condemned the development as a calculated attempt by the GICN group to pull down one of Nigeria’s major financial services institutions.

In a telephone chat with THEWILL, Mukhtar lamented over the deliberate efforts of some people to pull down an institution like GT Bank without considering the consequences—loss of employment, negative impact on investors’ assets and depositors’ funds, as well as the support to the economy through granting loans and advances to customers.

“GT Bank is one of the strongest new generation banks. It has been making profits over the years and paying dividends to the shareholders, providing employment to Nigerians, and giving value to investors. Much as I would not condone wrongdoing, I do not believe that a reputable institution would descend so low to dabble in such wrongdoings it is being accused of,” he said.

GTCO Plc: Stakeholders Address Allegations of Misconduct

He added: “There are better ways of approaching a matter like this, such as petitioning the various regulatory bodies instead of coming to the media to malign a reputable institution like GT Bank.”

National Co-ordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, lambasted the accusing group for wrongfully playing the role of the regulator. He noted that banking is a highly regulated sector and that no such misdemeanor could happen in a financial services institution without being detected.

“I watched the press conference online. I do not believe the allegations. Who is the group making the allegation? Are they the regulators of the industry? You don’t call a press conference to malign an institution. It is inappropriate; I urge the public not to believe those individuals either, and I do not believe the rumors they are spreading.

“The CBN is there; the NDIC, the Financial Reporting Council—are all there. If a customer has a complaint, he knows where to take it. And that will be resolved. GT Bank is a strategic and important institution in the financial services industry and should not be maligned for any reason,” Okezie told THEWILL by telephone.

In his reaction, Dr Paul Uzum, a stockbroker and investment expert, urged Nigerians to dispel the rumour being spread against GT Bank. He spoke with THEWILL over the phone and stated that GT Bank is a very strategic and powerful bank that is unrelated to the accusations being made by the accusing party.

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“GT Bank is one of the strategically cut-out banks,” he declared. Since there are not many GT Banks in the market, if something were to happen to the bank, the market would vanish. How many of those kinds of companies do we have? In terms of performance and corporate governance, they are among the industry leaders and cannot be overcome. Although that is not the proper course of action, the story must have been sponsored by an irate party.”

Sam Ndata, an investment expert and Doyen of the Stockbrokers, urged Nigerians and others not to rush into believing the allegations without proof because that would be injurious to the corporate image of GT Bank

GTCO reported an impressive result in its H1 2024 performance. It posted a profit before tax of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1trillion mark in profit. This milestone figure represents an increase of 206.6% over N327.4billion recorded in the corresponding period ended June 2023.

The Group’s loan book (net) Increased by 25.5% from N8trillion recorded as at December 2023 to N3.11trillion in June 2024, while deposit liabilities grew by 39.8% from N7.55trillion in December 2023 to N10.55trillion in June 2024.

Source: THE WILL NEWS