The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has called on the Nigeria Deposit Insurance Corporation (NDIC) to factor into its liquidation plan criteria for compensation and settlement of the workers of Heritage Bank.
The request came, following the recent order by the Central Bank of Nigeria (CBN), to revoke the operational license and liquidation of Heritage Bank Plc.
A statement by the National President of ASSBIFI, Olusoji Oluwole, said the collapse of the back came at a time when the economy was in serious crisis with hyperinflation and a high unemployment rate leading to job cuts.
He said it was most disheartening that vulnerable workers, who faithfully and committedly put in their best for decades in the bank would be abandoned to perish in penury.
He said while the association was not opposed to the liquidation order on the bank as prescribed by law and to sustain confidence and assure the general public of the safety of their money in Nigerian Banks, ASSBIFI was seriously concerned about the fate of its members, who have invested multiple decades of their active lives in the service of the bank.
According to him, their future now hangs in the balance, as there is no mention of plans to settle the workers in the CBN and NDIC publications and liquidation process.
“We are genuinely perturbed because the Association of Senior Staff of Banks, Insurance and Financial Institutions national secretariat vulnerable workers should not be unfairly treated, used and discarded without settlement of some sort.
“While the NDIC Act excludes staff-related accounts from the insurance premium, we appeal that the predicament of members is considered when payments are made to other depositors based on the harsh economic realities,” he said.
Oluwole implored the CBN and other regulators in the banking industry to deeply investigate the transactions and activities that caused the collapse of Heritage Bank, and invoke appropriate actions to recover debts while applying sanctions and penalties against any institutions or persons found guilty.
The ASSBIFI boss said the CBN order revoking the operational license and liquidation of Heritage Bank Plc did not come to the ASSBIFI as a surprise.
He said the situation could have been avoided if the regulatory authorities had heeded the various clamour from staff, ASSBIFI and the public on the plight of Heritage Bank.
According to him, no decisive action was seen to have been taken to stem the fate that eventually befell the institution on June 3, 2024.
“You will recall that sometime in June 2021, staff of the bank in Abuja gathered at the home of an alleged debtor, a prominent politician to recover unpaid debts to the bank.
“In 2023, we called the attention of the public to the insensitive disengagement of over 65 workers under the guise of reorganisation, who had put in decades of service to the bank without commensurate compensation as stated in the Labor Act and ILO conventions.
Rather than acting responsibly and doing the right thing through mediation with the Honorable Minister of Labour and Employment, the management chose to hide behind the cover of the court of law. This has been their behaviour as reported in recent times through other court judgments against them.
“In March 2024, The National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) also raised the same alarm, yet no decisive actions were taken,” he said.
