Uncertainty trails reconstitution of FMBN’s board

Two months after the dissolution of the board of directors of the Federal Mortgage Bank of Nigeria by the Minister Lands, Housing and Urban Development, Mr. Nduese Essien, there is uncertainty as to when the board would be reconstituted.

Investigations by our correspondent revealed that the Ministry of Lands, Housing and Urban Development has not concluded the process of reconstituting the bank‘s board.

According to Essien, the board of directors of FMBN was dissolved on the approval of Mr. President due to irregularities. The process of reconstituting the board is ongoing. Discussion is still on course. Currently, there is an acting managing director who has taken charge of the affairs of the bank.”

However, the National President and Chairman of Council, Real Estate Developers Association of Nigeria, Chief Olabode Afolanyan, told our correspondent that the delay in the reconstitution of the board of directors of FMBN had affected the operations of realtors.

He said, ”The Real Estate Developers Association of Nigeria notes that housing is a very sensitive sector of the economy and should be handled with extreme care and professionalism. Therefore, there is urgent need for the re-constitution of the board to avoid the collapse of the sector.

”The Federal Mortgage Bank of Nigeria is a creation of statute, duly established under the establishment of FMBN Act No 18 of 1993. Section 2(1) of the FMBN Act provides for the establishment of FMBN board, to be composed of five non-executive Directors, including the Chairman, and four executive directors, including the managing director.

He added, ”The former FMBN Board was made up of two non-executive directors, including the chairman, and six executive directors, including the managing director.

However, the Central Bank of Nigeria’s Code of Corporate Governance stipulates that the number of non-executive directors shall exceed the number of executive directors, in order to promote good corporate governance and best practice in banks and other financial institutions in Nigeria and in a bid to separate the critical functions of policy formation from implementation”

”As a major stakeholder in the housing sector with operational responsibility for physical realisation and implementation of the nation‘s housing policies and programmes, we have had cause to note the gap in composition of the former board of the bank.”
Source:http://www.punchng.com/Articl.aspx?theartic=Art201011211121915