We had no rift appointing new MD- Jaiz bank

JAIZ BANK

The bank said the proposed capital raising exercise was an affirmation of the confidence the board and shareholders have in its prospects.

Jaiz Bank Plc, on Sunday, denied reports of a major rift in its management and board over the appointment of a new Managing Director.

Recently, there were reports about disagreements over the tenure of the Managing Director, Hassan Usman, and appointment of his successor.

Observers interpreted the disagreement as a major rift in the bank’s management, an interpretation vehemently denied by Jaiz Bank.

Jaiz Bank issued a statement in Abuja on Sunday on the development.

“To set the records straight for the attention and benefit of all our regulators, bankers, shareholders, customers, investors, strategic stakeholders and the general public, there is no rift in the board of the bank, other than legitimate exercise of divergent opinions on a matter in the ordinary course of the directors’ duties,” the bank said.

To underscore its claim, the bank cited the approval of the proposed placement of ordinary shares at an extraordinary general meeting on October 28, 2020, in Abuja, chaired by the chairperson of the board of directors, Umaru Mutallab.

The bank said the proposed capital raising exercise was an affirmation of the confidence the board and shareholders have in its prospects, despite the current economic uncertainties occasioned by the COVID-19 pandemic.

On the disagreement over the appointment of a successor to the incumbent managing director, the bank said the issue was considered by the board as the expiration of his contract was approaching.

The bank said that while some directors were of the opinion that a change of the leadership was required to pursue some critical strategic goals, others were of the view that he should continue, given the very impressive performance of the current management.