Ondo State indebted to GTB – Bank

The management of Guaranty Trust Bank Plc has said that workers of the Ondo State Government acted in error by shutting down the operations of the bank’s branch in Akure on Thursday.
The workers were said to have been wrongly misinformed that the bank was holding onto the remunerations of the state’s civil servants.
Rather, the bank, in a statement on Thursday, said the state government guaranteed a facility for a related party and that it was the fund for the transaction that was deducted from the state government’s account.
The transaction was carried out in 2008.
The bank explained that what it did was only to exercise “its rights under the terms of the agreement by setting off outstanding sums against the State Government funds with the Bank”.
The statement added: “The Bank further reiterated that it was not holding on to any civil servants remunerations and has acted in conformity with the highest corporate governance standards in a professional and transparent manner.
“The Bank also confirmed that discussions are ongoing between the Ondo State Government and the Bank to resolve the situation.”
GTB promised to make available more details on the issue.