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But recent developments in the financial institution suggest that some forces within the system are making efforts to play up personal interests in the bank. Speaking with Saturday Newswatch on the recent crises rocking the bank, President of the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), Union Homes chapter, Mr. Sola William Tokede, alleged that the crisis currently rocking the bank started with its parent company – Union Bank Plc. Arguing, Tokede said trouble started in the bank because of its attachment to the apron string of Union Bank, pointing out that the situation led to the mismanagement of the resources of Union Homes. He did not claim ignorance of the move to change the ownership structure of the financial institution. The two term chairman of ASSBIFI, Union Homes chapter said his members would not go against the decision (perceived or real) of the parent company to sell the financial institution. However, according to him, the interest and welfare of the workers must be guaranteed. “There is no reaction. We want the place to thrive, to work; we don’t care who owns it, provided welfare and interest of the workers are taken into cognizance. We can work with anybody. The essence is for the bank not to go under,” he warned. How did the mortgage institution arrive at its present financial mess? Tokede told Saturday Newswatch that about N26 billion transferred from Union Homes to assist Union Bank during its recapitalization experience – which was never returned – and the unethical manner loans were given out without collateral, led to bad debts and unhealthy condition of Union Homes. “Union Homes played an active role in recapitalizing Union Bank Plc. We have it on good authority that N26billion was transferred from Union Homes to Union Bank Plc to assist in the recapitalization exercise. But what did we see after the recapitalization? They failed to return the money. That was the genesis of our problem, and the bank started bleeding. “There are billions of naira out there. Before now, loans were given to cronies without due processes being followed. Most of the loans outside are running into N10 billion. The loans cannot be recovered again because some of them are now classified as bad debts. Due process was not followed. All the prerequisites of lending were sacrifised on the altar of ‘man-knows -man’“, Tokede further alleged. The situation, according to him, aggravated to the level where the staff strength had to be trimmed from about 700 to 200, and failure by the management to pay the normal benefits to its staff. This, he further said, culminated in the ongoing picketing which entered the fourth week without any sign of amicable resolution of the crisis in view. “In as much as you cannot force a willing employee on an unwilling employer, we are saying it would be a disservice to humanity for you to get people out of their jobs and not treat them justly. Because of the situation in Union Homes, we are not asking for any extra payment; we are no longer claiming redundancy benefits as severance package since they couldn’t pay, so in our own magnanimity, we said pay us gratuity as is the normal practice. Before now, there was a template they adopted in payment. It had been in use for the 19 years that the bank has been in existence, only for them to jettison that last year, and brought 60 per cent of what they normally paid to staff whose appointment they terminated,” he said. Explaining how the management of the bank maltreated workers whose appointments were terminated, Tokede said the workers were asking for less than N1billion as their total benefits based on the old template, while the bank insisted it is going for less than N400million based on its new template to pay benefits to affected workers. “It is less than N1billion, even if they want to pay all of us off as we are complaining that we are tired of the condition of service here. And we cannot for whatever reason continue like this. They have to give us what will be beneficial to us so that we don’t go and die when we leave this place, but the management says it is paying just about N400million,” he stated. While advising that the management of Union Bank Plc - which indirectly manages Union Homes – to hands off the running of the mortgage bank because they have not been able to proffer the needed solution to its problem, the former Students’ Union leader called on the regulatory authorities in the sector and anti- graft agencies to intervene in the crisis for the sake of depositors’ funds. “I have never seen where a financial institution is picketed for more than a week before intervention comes. So in a situation where they cannot intervene decisively and do what we are asking, definitely we believe that the regulatory authorities should intervene. “By now we expected that the EFCC should have come in to peruse our books. The Central Bank of Nigeria would have seen all those things, they are not hidden,” the banker cried out. When contacted, the management of Union Bank Plc, the parent company of Union Homes, declined comments. The Assistant General Manager, Public Communications of the first generation bank, Mr Francis Barde promised to get back to our correspondent later.
Posted on: Fri, 06 Sep 2013 20:42:02 +0000