By Niyi Akande
Outgoing chairman of Livingtrust Mortgage Bank, Alhaji Adebayo Jimoh, may be heading for a showdown with Osun State Governor, Ademola Adeleke, over the appointment of a new chairman for the organisation.
Osundaily reports that Adeleke appointed ex-bank chief and one-time Osun State Commissioner for Finance, Dr. Wale Bolorunduro as the new chairman for the bank and his tenure was to commence on 19th of April, 2024.
But the outgoing chairman had started pointing out reasons why Bolorunduro would not assume the mantle of leadership until June 2025 when the bank would hold its Annual General Meeting.
Sources within the company had however said Osun State Government being the second largest shareholder of the bank, reserves the right to appoint the chairman, while CitiTrust, the majority shareholder appoints the Managing Director.
A source within the bank, who pleaded anonymity, while commenting on the crises brewing in the organisation, further said, “He (Adebayo Jimoh) has served as the chairman of Livingtrust Mortgage Bank since August 2016 when he was appointed by Ogbeni Rauf Aregbesola as a representative of the state government and chairman, on the board.
“He was retained subsequently by Oyetola, who introduced him to Aregbesola abinitio. He was the chairman till 8th April 2024, when the state government under Governor Adeleke replaced him with his new appointee.
“But the company secretary, Mr Timothy Gbadeyan, wrote a letter dated the same day Dr Wale Bolorunduro, was appointed by Adeleke as the new Chairman of the bank, introducing bottlenecks that will prevent the emergence of the new appointee of Governor Adeleke until June 2025.
“It is clear that Gbadeyan could not have taken the decision unilaterally. Is this a case of history repeating itself?
“It remains to be seen if on 19th April 2024 when he should hand over to the new appointee of Governor Adeleke as the bank’s chairman, Alhaji Jimoh will hand over to Bolorunduro or dare the state government.
“But the latest development is that Alhaji Jimoh has agreed to step down, but we are hearing that he won’t be replaced immediately by the new appointee of Adeleke. If that should be the case, will it not be tantamount to daring the government who is a major shareholder and number 1 customer?
“Another plan being hatched is for him to accept to resign and accept the new appointee, as acting chairman with a recommendation from the board sub-committee on nomination to recommend that he continues as a Director, under the guise of a board charter.
“The board charter, which is equivalent to rules of engagement is not supposed to contradict the Companies and Allied Matters Act (CAMA 2020) and existing shareholders agreement. So who will the outgoing chairman be representing perpetually on the board? Is it not against the rule of corporate governance to continue to stay on a board, which you were once a Chairman? CBN circular requires a cooling-off period before returning to the board too. LivingTrust is owned about 41 per cent by CItiTrust and about 40 per cent by Osun state.
“The existing shareholders’ agreement between the two major shareholders gives MD to CitiTrust and Chairman to Osun state. The remaking twenty per cent is owned by diverse individuals with no single person holding up to 10 per cent.”
