There appears to be no respite yet for StanbicIBTC bank and its suspended top officers as the Financial Reporting Council has declared that the Central Bank of Nigeria is not competent to overrule or review its operation.
The FRCN has also come out to claim that the CBN has been economical with the truth as to what transpired prior to the report they recently issued on StanbicIBTC and top officials of the bank.
“ One wonders why the CBN is condoning and vehemently defending an unwholesome disclosure and reporting practice such as this.
The only plausible reason will be that the CBN actually approved these statements” FRCN also noted that it’s IFRS conceptual framework requires fair presentation of financial statement and provide faithful representation, adding that” wrong classification of assets and liabilities could affect the economic decision of users” CBN had tried to overrule FRC on its sanction of Stanbic IBTC bank over its audited accounts for 2013 and 2014 and the suspension of the bank’s chairman, Atedo Peterside, and its Chief Executive Sola David-Borha, and three others.
The council also barred them forthwith from vouching for the integrity of any financial statements in Nigeria. In the letter signed by the Executive secretary of the FRC, Jim Obazee, he faulted the CBN position on the Council’s order on StanbicIBTC, noting that apex bank lied in its letter of November 2.
The FRCN’s position followed the statement issued earlier by the CBN Governor, Godwin Emefiele who had in a five-page letter, dated November 2, 2015, and addressed to the Executive Secretary, FRCN, Mr. Jim Obazee, pointed out that as the banking sector regulator, the FRCN failed to consult with it throughout the process of its investigation.
According to Emefiele in the letter, the announcement by the FRCN on SIBTCH was not only capable of eroding investor confidence, but inimical to financial system stability.
Emefiele had also noted that the council failed to follow due process in the matter and does not see any reason to advise/ compel SIBTCH to comply with the sanctions meted to it by FRCN But Obazee in his response of November 10, a copy of which was obtained in Abuja by The Union, detailed the sequence of events and the October 29 intervention of the Chief of staff to President Muhammadu Buhari who asked both the FRC boss and Emefiele to meet on the issue.
-Tony Ailemen ,Abuja