‘Poor Documentation Responsible for Bank Failure’

10 Dec 2012

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050712T.Justice Aloma Mariam Mukhtar.jpg - 050712T.Justice Aloma Mariam Mukhtar.jpg

Justice Aloma Mariam Mukhtar

The National Judicial Institute (NJI) and the Chartered Institute of Bankers of Nigeria (CIBN) have attributed the unpleasant experiences of bank failure in the country in the past to poor documentation by bank officials.

A statement at the weekend said the Chief Justice of Nigeria and Chairman Board of Governors, National Judicial Institute (NJI) Justice Aloma Mariam Mukhtar, made the remark at the 2012 National seminar on Banking and Allied Matters for Judges organised by NJI and CIBN in Abuja.

According to her, “We have noticed over time that a major problem with banking related cases is poor documentation by bank officials which have made the country gone through the bitter experience of failed banks in the time past. The country is still experiencing some of the consequences of that bitter era.”

Mukhtar, who was represented by Justice Mahmud Mohammed, Justice of the Supreme Court, advised that in order to avert such crises in the banking sector, bankers ought to follow due process; keep proper records and also keep all contractual agreements with customers.

“But this is not just limited to settlement of disputes arising in the course of Banker/Customer relationship, but also for the purpose of setting standard, ensuring corporate social responsibility and promoting public confidence in the banking industry,” Mukhtar stated.
On his part, President, CIBN, Mr. Segun Aina, said the judicial system must adopt strategies for effective dispute resolution such as putting in place good dispute management policies and creating effective and conducive atmosphere.

The CIBN boss added: “We are not unaware of the substantial resources some states such as Lagos, Kano, Rivers, Cross Rivers, Borno, the Federal Capital Territory, Abuja and the Federal Government had committed to Alternative Dispute Resolution (ADR) as a window for quick dispensation of cases that would have lingered on in the Courts. For instance, the Lagos Multi Door Court (LMDC) an initiative of the Lagos State Government, through its various programmes such as Lagos Settlement Week helps to administer ADR in Lagos State. Many cases involving banks and their customers have been amicably resolved through the instrumentality of LMDC.”

Tags: Nigeria, Featured, Business, Aloma Mariam Mukhtar

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