Why the Management of the Livingtrust Mortgage Bank Plc Never Wanted Functional Board

Nobody is certain of the reason, why CBN officials had decided to wake up to its supervisory calling and the rationale for its recent visit to the LivingTrust Mortgage bank in February, 2026 for special examination of the books, Management and the Board. Pundits, alleged that CBN could be acting on a possible internal whistle blowing report, recently generated. Certainly, nobody could ever congest the reason, why the visiting CBN officials requested the Managing Director, to proceed on Compulsory Leave, while the investigation lasted.

That CBN officials would be visiting to examine or supervise the Management of Livingtrust, which it has always believed and solely relies upon to decline the processing of professionals, recently, nominated by the Osun State Government to the Board of Livingtrust. This had been the case, twice in the last twelve months. So coming to audit or examine or monitor, the same bank is surprising.

Meanwhile, preliminary status report of the CBN regulators, confirms the concerns of the pundits that the Bank’s Management does not want proper oversight functions by an effective Board especially, a board under the Chairmanship of someone, who ought to know. Twice, the bank has done this.

 The state’s first nominee (Dr Wale Bolorunduro) and the second nominee of the Osun State Government fell into the category of Chairman that ought to know with similar background as ex-KPMG professionals, auditors and bankers. 

The second nominee’s identity had not been made public, deliberately to preempt the possible subterfuge moves by some elements, who has been working against the interest of the public to ensure proper corporate governance of the ban.

“The preliminary report communicated after the investigation via a letter with a reference OFI/DOA/CON/PMB/001/018 to the Managing Director after the investigation via a letter dated 17th February, 2026 to the Managing Director revealed that the board as it is has been rendered subservient to the Management and certain inducements such as purchase of cars, Perquisites, allowances, etc are being used to induce the board contrary to sound corporate governance.  

This is usually the case, when CBN begins to enforce control such as “the suspension of Executive and Board Benefits” as currently, being imposed by CBN on Livingtrust Mortgage Bank Plc. Another control, currently in place is the “Restrictions on Insiders and Lending to Related Parties, Associates of Board Members and Obligors with Classified Loans as at January 30, 2026”. 

Also, in the letter, CBN has to impose the “Segregation of Duties and Organizational Realignment”, an internal control mechanism that the board ought to have compelled under their oversight review work, if they had not been compromised. Pundits are surprised that CBN ought to have used its sledge hammer on the Management rather than imposing timeframe to comply. They doubt the compliance by the Management, knowing that the bank would have to do heavy lifting, which requires capacity, currently lacking to comply and judging from the previous indulgence of the Management by CBN.

The Osun State Government is currently investigating all her representatives on the board of the Livingtrust Mortgage Bank and an insider has confirmed that any representative, found wanting or found to have compromised the sound corporate governance will be sacked, relieved or withdrawn from Livingtrust and the Osun State Government. Especially, when it bothers on inducement, assets and loans acquisition, not known to the Shareholders’ Agreements existing between the two majority shareholders of the Livingtrust Mortgage Bank Plc. 

The Osun State Government is abreast of the existing three agreements mutually executed by the CitiTrust and the Osun state government on the roles of the Chairman and other Directors. One agreement was put in place by previous Administration of the Osun State, while two others have been put in place by Governor Adeleke’s Administration. None of the Shareholders’ Agreements suggests the existence of the office of Chairman as currently, being practiced by the Livingtrust Mortgage Bank or payment of undue allowances to the Chairman, who is supposed to be the nominee of the Osun State Government as Independent Non-Executive Director. This may be the suspected reason why some elements have been relieved of their duties, recently by the State Government.