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Wednesday, 6 April 2016

Leadership Crisis Hits Unity Bank! Reason Behind The Sack Of Over 170 Workers

The popular saying: “when two or more elephants fight, the grass suffers most” has been the case of leadership tussle that is presently rocking one of Nigeria financial institutions, Unity bank Plc.
It no news that Unity Bank announced the disengagement of over 170 workers, stating that the move was part of efforts aimed at repositioning it for effective service delivery but information at our disposal has revealed the facts.
Societyreelnews reliably gathered that the said tussle is among the following: the new managing director, Henry James Semenitari, a former acting MD, Rislanudeen Muhammad and a member of the board of director Oluwafunsho Obasanjo, daughter of former President Olusegun Obasanjo. Findings revealed that the new managing director, James Semenitari is getting rid of those who are loyalist of both the former MD and the Ex acting MD Rislanudeen Muhammad who has the ambition to become the next managing director.



Those who are privy to facts claimed that the problem started when Yakubu Wanka who joined Unity Bank in 2010 as an executive director from First Bank of Nigeria, emerged as the new chief executive of the bank against the wish of one of the bank’s board member, Oluwafunsho Obasanjo. He was appointed to head the bank for an initial period of two years, subject to renewal. By the time that tenure ended, he pulled some strings that saw him reappointed for another period of two years. However, it did not take a long time before he realised that the party was over.
Before the end of his tenure, Wanka resigned but not voluntary. His reign at the bank, sources said, was characterised by corporate governance breaches and massive losses to investors. Insiders at the bank informed that trouble started when Wanka granted himself a loan of N1 billion. He did not get away with the insider abuse as both the Board of Directors of the bank and the Central Bank of Nigeria, CBN, compelled him to refund the money.
Internally, Wanka did not have the support and confidence of the staff. His popularity among them nosedived when he pegged the retirement age of mangers in the bank at 52. That did not go down well with the staff. Even when some argued that experience and competence of some of those people may be required for the growth of the bank, the policy was not changed.
With the backing of Oluwafunsho Obasanjo, who engineered the support of other board members, Rislanudeen Muhammad was made the acting MD with the intension to me sworn in as the real MD after few months.  While serving as the acting MD, Rislanudeen Muhammad won the heart of staff members but not that of some board members like Aminu Babangida, son of former military president, Ibrahim Babangida who claimed that the arrogance in Rislanudeen Muhammad is too glaring. This and many other cases like declining in investors’ confidence, weak corporate governance and boardroom manoeuvres, made the board to call for the employment of James Semenitari, a complete fresh recruit to the bank.
It was sad news for Rislanudeen Muhammad when he got the wind of the employment of James Semenitari to take the barton as the new managing director following the approval of Central Bank of Nigeria (CBN).  The trouble started when member of staffs, especially the executives directors refused to cooperate with directives of the new MD, who some claimed not to be as experience as they were. This among other trivial issues led to James Semenitari‘s decision to show whoever is a loyalist of both Yakubu Wanka and Rislanudeen Muhammad the door out of the bank.
Sources close to the bank claim that the alleged leadership tussle is also amidst the board members as some minority frown at the disengagement of staffs while some hail the new MD’s move. Staffs who spoke under anonymity said its now order of the day in all branches nationwide to see staffs gather in twos or more discussing their fate as they are not sure how sudden their last day in office will come.
Unity Bank is facing growth challenge compounded by the fact that many of its customers sees it as a bank that is not growing with the information technology, IT, age. The bank fundamental issue is with its online banking platform which led to loss of confidence on the part of its customers. Many of them abandoned their accounts with the bank as they could not perform online banking that is fast gaining ground in the banking sector. Among others there was frequent complaint of very unusual delay during interbank transfers. That took a toll on the customer base of the bank and its projected profit.

Efforts to speak with Theodora Amechi, Head corporate communication of Unity Bank to get their side proved abortive as all calls to her was ignored.

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