Nigeria’s FRC asks CBN, others to sanction Stanbic IBTC chairman

Mrs Sola David-Borha, Stanbic IBTC, MD
Mrs Sola David-Borha, Stanbic IBTC, MD
Nigeria’s Financial Reporting Council, FRC on Monday asked the Central Bank of Nigeria to take regulatory action against Atedo Peterside, the Chairman of Stanbic IBTC Holdings Plc, Sola Borha, the managing director of the bank as well as Arthur Oginga and Daru Owei, employees of KPMG Professional Services, the external auditors of the bank over what it described as misrepresentation of the financial position of the financial institution for years ended 31st December 2013 and 2014.

On its part, the FRC said it has suspended the four individuals from vouching for the integrity of any financial statements issued in Nigeria until the investigation as to the extent of their negligence in the concealment, accounting irregularities and poor disclosures in the financial statements is completed in accordance with Section 62 of the Financial Reporting Council of Nigeria Act No. 6, 2011.
The recommendations were the outcome of FRC probe of the financial statements of Stanbic IBTC Holdings Plc (Stanbic IBTC) and major subsidiaries of the holding company for the years ended 31st December 2013 and 2014.
FRC said irregularities in the reports were brought to its attention by some minority shareholders of Stanbic IBTC relating to the Financial Statements of the bank for years ended 31st December 2011, 2012, 2013 and 2014.
The Council said its investigations revealed many inconsistencies in the financial statements of the bank which it also accused on not disclosing some of the items its expended money budgeted under subheadings like donations for.
Also, the Council noted that the fees paid by IBTC bank to KPMG Professional Services for non-audit services was found to be inconsistent with what was disclosed in the financial statements for the years under review, the council said.
“The Council observed that Stanbic IBTC regularly flouts CBN regulations. In 2014 for instance, a total penalty of N28, 000,000 was imposed on the group. Stanbic IBTC seems to have a penchant for poor disclosures which further corroborates the findings in this report,” the statement said.
In addition, FRC also accused Stanbic IBTC of selling the software it developed in Nigeria to its South African partner with disclosing the cost of the development of the software in its accounts.
The Council asked the Bank to withdraw the financial statements while asking the CBN, the Economic and Financial Crimes Commission, EFCC as well as the Federal Inland Revenue Service to also take different actions that will help whip the financial institution into line.
“The Central Bank of Nigeria is requested to assist in this effort by taking regulatory disciplinary actions against those whom the CBN expects to guarantee the integrity of the aforementioned financial statements in order to safeguard the interest of stakeholders of Stanbic IBTC. We are convinced that once the monies are properly accounted for and used to shore up their Tier 1 capital, the institution shall become stronger,” said the Council.
“The Federal Inland Revenue Service is requested to ensure that the related taxes are paid and the government is not unduly short changed,” it added.
“The Economic and Financial Crimes Commission is requested to assist in this effort by questioning those involved in the concealment and sale of the banking application software that was developed in Nigeria which, other than the financial implication, has also robbed Nigerians of national pride.”

Comments

Post a Comment

Popular posts from this blog

Vera Wang to design Lady Gaga’s wedding dress

Image
(Vera Wang to design Lady Gaga’s wedding dress. Photo: Shemazing) Lady Gaga , who is preparing to tie the knot with  Chicago Fire  actor,  Taylor Kinney , reportedly reached out to her fashion designer pal,  Vera Wang , to ask her to create her dream wedding dress. A source told Life & Style magazine: ‘She trusts Vera to create an elegant, flowy dress that will fit into her dream wedding!’ The designer has previously created custom-made gowns for a number of other celebrities including Khloé Kardashian ,  Alicia Keys ,   Mariah  Carey  and Nigerian singer,  Tiwa Savage . (Lady Gaga is preparing to tie the knot with ‘Chicago Fire’ actor, Taylor Kinney. Photo: AP) The couple, who got engaged last Valentine’s Day on  February 14  after four years of dating , are planning to exchange vows in a ‘relaxed beach wedding’ this summer at the 29-year old singer’s $23 million mansion in Malibu, California.
Read more

Jeff Bezos Remains World Wealthiest As His Fortunes Hits $172 Billion

Image
Jeff Bezos’ wealth has hit a new high following a recent rise in Amazon’s stock value. Bezos, the founder and CEO of Amazon, is now worth $172 billion according to the Bloomberg Billionaires Index. Bezos’ ex-wife MacKenzie took 25 percent of his shares, which meant at the time her stake was worth more than $35 billion, according to Forbes. However, 56-year-old Bezos remained the wealthiest person on the planet after the settlement and his wealth has continued to soar amid the coronavirus pandemic. Bezos’ company, Amazon has been doing particularly well in recent months with the increased demand for online shopping de to the Coronavirus pandemic. As a result, the company’s share prices has increased. According to Comparisun, Bezos is on track to be the world’s first trillionaire by 2026.
Read more

It's been 25 years since Saddam Hussein's invasion of Kuwait

Image
A quarter century ago, after Saddam Hussein's Iraqi army successfully invaded and took over the tiny Persian Gulf nation of Kuwait, President George H.W. Bush famously drew a line in the sand against Iraqi aggression. While the United States and its allies easily ejected Iraq from Kuwait within seven months of the Aug. 2, 1990, invasion, Bush's line has continued onward in an almost Biblical fashion, accompanied by plenty of pre-modern horrors. The Gulf War begat the 9/11 terrorist attacks, which begat the US invasions of Afghanistan and Iraq, which begat ISIS, which begat a potential future war with Iran or Syria or even what remains of Iraq. At the time, however, Bush said standing up to Hussein's Iraq was necessary to protect neighboring Saudi Arabia, a key US ally and the world's largest oil producing country, both then and now. "The sovereign independence...
Read more