CIBN Boss' Exit Creates Vacuum in Trade Bank
The exit of Mr. Samuel Ereola Kolawole, former Managing Director and Chief Executive Officer of Trade Bank Plc after 16 years in the saddle last Thursday has created a vacuum in the 18-year-old financial institution.
Originally billed to have retired last March as decided by the board last year, Kolawole got an extension of six months to prepare a successor and ensure smooth change of leadership.
The board at its February meeting where the extension was granted said the most senior officer next to Kolawole should act as acting Managing Director designate from then to understudy him.
The Board according to sources close to the Central Bank of Nigeria (CBN) wrote the bank for endorsement of their plan, which was approved.
Kolawole however preferred a broad base opportunity for both internal and external candidates, indicating that there was no succession plan for the 16 years he was the CEO of the bank.
The Board not particularly pleased then gave an affirmative directive that Mr Kolawole must retire unfailingly by September 30th, 2004.
The extension granted in the first instance was at the instance of stakeholders meeting called by the former Managing Director.
Kolawole, who is also the current President of the Chartered Institute of Bankers of Nigeria (CIBN), on Thursday, September 30th at the Valedictory Board meeting also made a last minute attempt to stay on.
Sources closed to the meeting held at the Bank�s Board Room in Lagos said, a letter from the Central Bank of Nigeria, advising the Trade Bank Board to allow Kolawole to stay on was presented. This was to allow him time to oversee the consolidation currently going on in the banking industry.
The bewildered Board members unanimously agreed that the advice came too late since September 30th was the last day for the former Trade Bank boss on the Board.
He was subsequently directed to hand over to the most senior officer of the bank pending the Central Bank's approval of the Board�s nominee for the post of Managing Director.
Impeachable sources said the board was of the view that consolidation is a process, which is not dependent on a particular person but was grateful for the CBN advise.
A top member of the banking community asked to comment on the Trade Bank Plc leadership vacuum, said it was unimaginable that a managing director for 16 years could not come up with a succession plan and a smooth transfer of power, which The Trans International Bank Plc achieved early in the year.
The analyst also pointed out that Kolawole's excuse on the consolidation in the banking industry holds no water, citing the example of the exit of the former Managing Director of Habib Nigeria Bank Limited, Mr. AbdulFatai Akin Kekere-Ekun, who left in August even while the bank was undergoing restructuring and consolidation.
Followers of the Trade Bank's history also recalled that apart from Mr Kolawole there was no other executive director on the Board of the Bank for twelve years.
Two Executive Directors were however appointed after Central Bank's approval in 1998. Without explanation from the Board or the management, the two positions were scrapped and the holders were summarily retired.
|
