Residents of Iponri Estate in Lagos, Nigeria have described the administration of Lagos Building Investment Company (LBIC) Managing Director, Mrs Folashade Folivi, incompetent and fell out of corporate governance as well as CBN Regulations which has exposed her managerial inexperience.
They said; It is imperative to put in the public domain the collapse and imminent threat to shareholders investments and confidence in the Company.
The Company's private placement was subscribed to shareholders in 2008 and it's not encouraging to say that nothing has been done since to boost shareholders confidence in their investments as no dividend was ever declared, no annual general meeting was held and no information to shareholders and/or other necessary knowledge was passed.
Further findings from "the displeased shareholders" showed that all attempt to call the attention of the previous management to address the issues and many others raised at different times were futile and that all they get as minority shareholders ( Lagosians) is the arrogance displayed by the company and its management.
All these actions, they said put to question the quality of the decision makers of the company viz a vis their qualifications and experiences.
The present directors who were appointed by His Excellency, Governor Akinwunmi Ambode in December, 2015 (as LASG were said to be the majority shareholder; the appointees resumes posted on the online showed that they have no required pre-requisite experience and skills to be saddled with the responsibilities of the day to day running of a bank talk more of a mortgage bank which is specialised financial institution.
“The results are beginning to show; loophole is still seen and we can only grasp on hope, hoping for Change".
“Ms Folashade Folivi, on assumption of office as Managing Director has been declaring losses from the operations of the company every month which now has over N100 million losses from June 2016. One would wonder why so, assuming the competence of the board was considered before appointment. It is glaring that the Managing Director has no iota of experience in the highly regulated banking industry and neither has she cut her teeth in financial intermediation at any reasonable level.
“If this trend continues, the company would by its financial year end made a loss of #200m and thus, capital erosion. This would further put other shareholders investment in continuous Jeopardy and for how long do we keep hoping for better result from an obvious inexperience board. Even if the state government can afford to lose its investment to the arrogance and inexperience of the MD, we the Shareholder can't afford it anymore, it has been a long term of endurance.”
According to another source in the Lagos State House of Assembly, “Ms Folashade Folivi, does not attend to oversight functions and issues of Lagos State House of Assembly committees as she constantly display arrogance to summons of the House, Government Agencies, Government officials , institutions, regulators and political officers. The company under her watch kept piling up cost and losses given the harsh economic environment which requires ingenuity as financial institutions are under pressure daily.”
“On corporate governance, it was observed that no board is in place , no company secretary hence all is left to the discretion, whims and caprices of the MD, which is not ideal in highly regulated environment.”
Observers said they do not understand if this process is so designed to satisfy her arrogance or doubtful political campaign patronage from Notore Chemicals where she was last employed; a company that is practically on its knee with huge deficit.
That her insensitivity to political activities around her threat and action to coerce residents of low cost estates in Iponri and Amuwo Estates by using state machinery (task force /kai) to dislodge residents of their means of livelihood in the estates, when the state political party is warming up for local government elections is uncalled for.
The residents are therefore said to be grouping for reprisal attacks in the event of any action. A move observers say has security implications for lives and properties and public perception of the company and Lagos State Government.
“What confidence would Lagosians /residents have in the good works and laudable programmes of His Excellency Akinwunmi Ambode, in raising capital from the public for a better Lagos when incompetent and inexperience people are appointed to the helms of affairs of such institutions. The governor should take note and act accordingly.”
The Head of Association in Iponri Estate disclosed.