Heritage Bank Boardroom Crisis, A Big Mess
Boardroom Crisis Rocks Troubled Heritage Bank as MD Initiates Mass Sack to Oust ‘Owners’
Heritage Bank, currently facing significant challenges, is on the brink of a boardroom crisis that could shake its foundation, according to reliable sources within the bank.
Less than a year after assuming the position of Managing Director and Chief Executive Officer, Mr. Akinola George-Taylor has allegedly plunged the already distressed bank into further turmoil by instigating an internal crisis. Sources claim that George-Taylor is attempting to remove individuals suspected of being loyal to certain board members while bringing in his own team. These actions are believed to be motivated by the new MD’s plan to oust board members who have been at odds with him.
Furthermore, the bank’s chief is reportedly receiving support from a major shareholder who allegedly aims to take sole control of the bank and remove the current owners.
Insiders at the bank, which has been struggling to stay afloat in recent months, have revealed that more than 70 senior staff members have been terminated, while others have been pressured to resign. In addition to the forced departures, several employees have resigned voluntarily due to poor working conditions. The once active bank branches are now eerily quiet. Shockingly, the affected staff members have not been paid their accrued entitlements and allowances.
This development is taking place despite an order from the Central Bank of Nigeria (CBN) prohibiting deposit money banks from conducting mass layoffs.
“One can confirm that there is a war raging at Heritage Bank. Over 70 individuals have been asked to leave, and some were forced to resign. It’s worth noting that those who were asked to leave have not received any compensation,” said an anonymous management staff member.
“The new managing director’s objective is to remove individuals who are loyal to certain board members that he is not aligned with, so he can bring in his own people,” revealed one of the sources.
The current crisis adds to the ongoing financial distress at the bank. Reports indicate that Heritage Bank has been struggling to pay its workers’ salaries for some time, leaving depositors unable to access their funds.
The CBN has faced pressure to revoke the bank’s license due to its alleged financial instability and failure to meet its obligations to depositors. Many have questioned why the Nigerian banking regulator has not taken decisive action against the troubled institution.
Further investigations by Daily Global News have uncovered that, in addition to issues with the Capital Adequacy Ratio (CAR) and Liquidity Ratio (LR), the bank is grappling with numerous other crises that threaten its survival.
One such crisis is the poor quality of service experienced by customers. Numerous complaints have flooded the bank’s branches, with dissatisfied customers expressing their intention to close their accounts due to long wait times and subpar service from Heritage Bank staff.
In an effort to gather the bank’s perspective, Daily Global News reached out to Ozenna Utulu, the head of Corporate Communications at Heritage Bank.
Utulu responded by saying, “These allegations are untrue; there is no boardroom crisis at the bank. Organizations restructure from time to time, as is common everywhere.”
