Acting Managing Director, Mrs Kudirat Badmus
By Our Reporter
The deepening crisis at SunTrust Bank Limited has taken a fresh turn, with the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) reportedly stepping up scrutiny of the bank amid mounting allegations of financial impropriety, questionable recapitalisation practices and corporate governance breaches.
According to a report by First Weekly, fresh developments at the bank, according to sources familiar with the unfolding situation, suggest that the authorities are increasingly concerned about the institution’s financial health, particularly its liquidity position and the need to protect depositors’ funds from any possible exposure arising from the alleged financial practices.
Impeccable sources disclosed that the bank’s Acting Managing Director, Mrs Kudirat Badmus, and one of its directors, Mr Arho Akpe, were reportedly invited by the EFCC to provide explanations concerning the controversy surrounding the bank’s operations, its financial position and allegations of irregularities linked to its recapitalisation exercise.
It was, however, not immediately clear whether the invitation was for questioning as witnesses or in connection with any specific investigation.
Badmus, an Executive Director of the bank, assumed office as Acting Managing Director on September 9, 2026, following the suspension of the substantive Managing Director, Mrs Halima Buba.
The latest development comes against the backdrop of a protracted boardroom crisis that has reportedly divided the bank’s leadership, particularly between its Chairman, Mr Olanrewaju Shittu, a former Central Bank executive, and another influential director, Mr Mohammed Barde.
Barde is alleged by insiders to control approximately 70 per cent of the bank’s shareholding through a combination of direct and proxy holdings, a situation that has reportedly raised concerns about the concentration of ownership, control and decision-making powers within the institution.
Sources also allege that his relationships with influential figures within the CBN have helped strengthen his position in the bank. A Deputy Governor of the apex bank was specifically mentioned as having a close relationship with him. However, these claims have not been independently established, and there is no verified evidence that any CBN official has intervened to frustrate regulatory oversight.
At the heart of the unfolding controversy is the allegation that Barde has exercised excessive control over the bank, allegedly disregarding established corporate governance procedures and creating an atmosphere of tension among other directors and senior management officials.
More particularly, concerns have been raised about the circumstances surrounding the bank’s recapitalisation exercise, reportedly concluded in August 2026, and the alleged financial manoeuvres employed to meet the regulatory capital requirements.
Insiders claim that depositors’ funds may have been mobilised or deployed in questionable ways during the exercise, raising concerns about whether the funds used satisfied the applicable regulatory requirements.
The allegations, if established, could have serious implications for the bank and its leadership, particularly if regulators determine that the recapitalisation process involved practices inconsistent with banking regulations.
The reported EFCC invitation has also generated questions within the institution about why Barde, whose alleged influence and shareholding position have featured prominently in the controversy, was not among those said to have been invited alongside the Acting Managing Director and Akpe.
Some insiders have suggested that the director has been travelling between Nigeria and the United Kingdom in recent times, although claims that his movements are connected to any attempt to evade investigation or arrest remain unverified.
There are also claims that Badmus and Akpe may have spent at least one night in EFCC custody. This magazine could not independently confirm the circumstances surrounding their alleged detention or whether they were subsequently released.
In another significant development, sources disclosed that SunTrust Bank may have recently refunded approximately N2.5 billion to a depositor, amid concerns about the institution’s liquidity and its ability to meet substantial financial obligations.
The circumstances surrounding the reported refund, including whether it was connected to any regulatory intervention or a specific depositor complaint, were not immediately established.
Meanwhile, the CBN is reportedly conducting a forensic examination of the bank’s books and financial records, with particular attention to transactions and financial arrangements surrounding the recapitalisation exercise.
The examination is expected to provide regulators with a clearer picture of the bank’s capital position, the sources of funds deployed during the exercise and whether there were any breaches of applicable banking regulations.
The renewed scrutiny is particularly significant given the concerns reportedly expressed by some stakeholders that previous attempts to examine the bank’s operations did not achieve the desired results.
Sources within the institution believe that the latest intervention could provide an opportunity for a more comprehensive examination of its operations and the relationships between ownership, management and the board.
STAFF DISCONTENT AND GOVERNANCE CONCERNS
Beyond the regulatory concerns, the crisis has reportedly exposed deep-seated dissatisfaction among sections of the bank’s workforce.
Some employees are said to be welcoming the reported intervention by the EFCC and CBN, hoping that it will bring an end to what they describe as an unhealthy concentration of power in the hands of one individual.
According to insiders, there has been growing discontent over Barde’s alleged management style, which some staff members reportedly consider high-handed and inconsistent with the principles of a professionally managed financial institution.
There are also allegations that some employees were relieved of their appointments under controversial circumstances without receiving their full severance entitlements.
The latest developments have therefore raised hopes among sections of the workforce that the ongoing scrutiny will extend beyond the bank’s financial records to a broader examination of its corporate governance structure, management practices and treatment of employees.
For many within the institution, the central issue is no longer simply the disagreement between members of the board but the future of the bank itself, the protection of depositors’ funds and the restoration of confidence in its management.
With the EFCC reportedly seeking explanations from key officials and the CBN said to be examining the bank’s financial records, the unfolding situation could have far-reaching implications for the institution.
SunTrust Bank is yet to issue an official statement addressing the latest allegations and reported regulatory developments.
