Enugu State Govt Seals Commercial Banks over N1bn Debt

The Enugu nation Board of inner sales (BIR) on Monday sealed 36 branches of 8 commercial banks allegedly indebted to the nation government to the track one billion Naira.

The exercise, which commenced round five.30AM, turned into done at 23 locations of the affected banks throughout the Coal town.

Addressing newsmen after the workout, the Chairman of the BIR, Emeka Odo, stated that the board sealed the banks because of their failure to remit about 1000000000 Naira owed the kingdom government.

Odo stated that the board had in Feb. 6, obtained an exparte order from the state excessive court docket to distrain the affected banks.

He stated that the debts were a part of the withholding taxes they have been supposed to remit to the kingdom government which dated returned to 2007.

The affected monetary institutions are access bank, Stanbic IBTC bank, Skye bank, Union bank, cohesion financial institution, background bank, Keystone financial institution and Sterling financial institution.

“The branches of the affected banks that are now underneath lock and key will continue to be locked until they pay to the country authorities the taxes they have collected on its behalf. Within the past three hundred and sixty five days we've got written the affected banks severally and held conferences with them on the situation be counted but they could rather hold onto authorities price range illegally,” he stated.

Odo said that the eight banks had blended branch network of 36 branches in Enugu city and the neighbouring cities of Agbani and Ituku Ozalla.

“The sealing of those banks is the first phase of the enforcement workout on principal groups and institutions to make certain that they carry out their civic duty to the nation authorities. We are able to now not permit banks to act like company outlaws whilst it is on file that the withholding taxes were deducted by way of the banks from the hobby they pay on clients’ deposits,” he stated.

Odo appealed to clients of the affected banks not to panic however see the exercising as a measure to permit authorities serve them higher, adding that their deposits in the banks were nevertheless intact.

He stated that the board did no longer count on the sealing of the banks to remaining for more than three days, specially if they complied.

The staff of the affected banks as well as customers could not gain access to the banks as a red ribbon was used to cross the entrance of the banks and a notice with the inscription ‘Sealed by Court Order’ was put on the wall.

However, managers of some of the affected banks were sighted at the head office of the BIR consulting with officials of the board.

Efforts to reach the bank managers proved abortive as they declined comments.