NIBSS staff sacked for exposing fraud, demands N1bn damage
A former Chief Risk and Compliance Officer of the Nigeria Inter-Bank Settlement System, NIBSS,Temidayo Adekanye has dragged the organisation before the National Industrial Court, Lagos for an alleged unlawful termination of his appointment.
NIBSS has however refuted the allegation of unlawful sack and insisted that Adekanye was relieved of his duties for suppressing an audit report that had indicted him.
In the suit filed on his behalf by Senior Advocate of Nigeria, Wahab Shittu, Adekanye claimed that his appointment was unlawfully terminated in February this year following his discovery of some fraudulent activities in the organisation which according to him was capable of affecting the banking system in the country.
Adekanye in his statement of facts sighted by our correspondent, averred that the termination of his appointment was due to his alertness of informing the management “about serious financial misappropriation including but not limited to fundamental governance, transparency and fraud-related issues in the organization”.
The claimant who stated that he was employed in 2020 and had efficiently performed his duties, averred that the termination of his employment was due to the concerns he raised about serious financial misappropriation including but not limited to fundamental governance, transparency and fraud related issues in the organization.
He pointed out that his action as Chief Risk Officer of the organisation was to save the organization from collapse and the ensuing economic catastrophe which will invariably have a negative effect on the integrity of the financial system of the country.
He stated that in the absence of feasible action after he reported the matter to the Managing Director of NIBSS, he subsequently escalated his complaints to the Board Audit and Risk Committee on November 13, 2023 but that the complaints were never investigated.
The claimant also averred that other concerns he raised includes Afrigo and NQR fraud, Hyper Converged Infrastructure, HCI, implementation, purchase of land at Eko Atlantic in 2023, lack of due care in critical operational process with severe industry impact, which included a deliberate denial and lack of access to data, first line control failures, inadequate processes and system documentation to carry out further reviews of operational losses among many others.
Rather than act swiftly on the concerns raised by him, Adekanye alleged that NIBSS management changed its corporate structure and organogram to eliminate his office in a calculated attempt to oust his jurisdiction and stultify his duties as the Chief Risk and Compliance Officer.
“The claimant was sidelined and his responsibilities and departments were taken away from him. The Executive Management Committee (Exco) was reconstituted with the claimant completely obliterated from meetings and his 2024 upfront payment unjustifiably withheld. Thereafter, the letter terminated his employment on the 15th of January 2024,” the court filing reads.
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Narrating how he was humiliated by his employer for doing his job, Adekanye stated that he was invited for a meeting at 10 am on January 15 alongside the head of human resources, HOD legal/company secretary and chief financial officer.
He said while the meeting was ongoing, “three armed men in military attire claiming to be officers of the Department of State Services, DSS, busted into the conference room, showed their ID cards”, and ordered him to hand over all his mobile devices and laptops.
He claimed that he was offered to resign with the payment of the sum of N160 Million as pay-off package or risk the immediate termination of his appointment.
“His request to enable him time to weigh and consider the offer was refused and on the spot he was given the letter dated 15th January 2024 terminating his employment ignobly,” the court papers further read.
Following the averments made, Adekanye wants the court to declare the termination of his appointment as “unlawful, wrongful and unjustified”.
“An order of court reinstating the claimant to his position as though he had never been terminated.
“An order of court directing the defendant pay to the claimant all his salaries, allowances and or other perquisites accruable to his office from the date of the purported termination until judgment is delivered.
“An order of court that the claimant is entitled to all the promotions which he would have had but for the purported termination.”
He also wants the court to further order the defendant to pay N250 million as special and general damages as well as another N150 million as exemplary damages for the infringement of his fundamental rights.
Alternatively, Adekanye is praying the court to issue an order directing the defendant to pay him the full amount of salaries, allowances and other emoluments which he would have earned of the unexpired remaining years on the attainment of 60 years.
Although NIBSS is yet to file a formal response to Adekanye’s suit, the organisation had however in response to his lawyer demand that he be reinstated, claimed that he (Adekanye) was sacked for suppressing a report which had actually indicted his office as Chief Compliance Officer.
The NIBSS letter by its lawyer, Kemi Pinheiro dated March 15, 2024 reads: “Sometime in March, 2022, our Client engaged the services of Ernst & Young (EY) to conduct an independent assessment of the Enterprise Risk Management Framework. At the end of the exercise, EY prepared a report and forwarded the same to your Client.
“However, at the time of presenting the report to the Management and Board, your Client procured the removal of aspects of the report which indicted him as being unfit and unqualified for the position of CRCO.
“The suppression of such vital information beyond being an integrity issue also constituted a criminal offence under Section 355 of the Criminal Law of Lagos State which prohibits an, officer of a Company from falsifying documents for the purpose of defrauding a Company.
“It is our view that by conniving to alter and falsify the report so as to continue occupying the position of CRCO which he was unqualified to hold, your Client had willingly and deliberately defrauded our Client by his continued occupation of that position and receipt of salaries and entitlement when he was very much aware that he was not fit to occupy that position.”
No date has been fixed for the hearing of the suit.
