FRC suspends Stan­bic IBTC chair­man, CEO

..Bank says it met dis­clo­sure re­quire­ments

Daily Trust - - FRONT PAGE - By Chris Agabi

The Financial Re­port­ing Coun­cil of Nige­ria (FRCN) has sus­pended the chair­man, Stan­bic IBTC Hold­ings Plc, Mr. Atedo Peter­side, the chief ex­ec­u­tive, Mrs. Sola David-Borha and staff of KPMG Pro­fes­sional Ser­vices for al­leged in­frac­tions in the "2013 and 2014 state­ments of financial po­si­tion of the com­pany.”

Ac­cord­ing to a state­ment from FRCN, the sus­pen­sion is ex­pected to be in place "un­til the in­ves­ti­ga­tion as to the ex­tent of their neg­li­gence in the con­ceal­ment, ac­count­ing ir­reg­u­lar­i­ties and poor dis­clo­sures in the said financial state­ments is com­pleted in ac­cor­dance with Sec­tion 62 of the Financial Re­port­ing Coun­cil of Nige­ria.”

FRCN said they were sus­pended for at­test­ing to “mis­lead­ing” financial state­ments, and would re­main sus­pended till in­ves­ti­ga­tions are con­cluded.

The coun­cil pointed out sev­eral in­con­sis­ten­cies in the bank’s re­port­ing, in­clud­ing IBTC’s fail­ure or re­fusal to dis­close what ex­actly mil­lions of naira grouped un­der “do­na­tions” and “oth­ers” were used for.

In one in­stance, it said “the to­tal fee IBTC bank paid 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 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.

The coun­cil in­structed the di­rec­tors of Stan­bic IBTC to with­draw the financial state­ments of and re­state them in ac­cor­dance with the pro­vi­sions of the law.

But in a swift re­ac­tion, Stan­bic IBTC Hold­ings said it has met the dis­clo­sure re­quire­ments of the in­ter­na­tional financial re­port­ing Stan­dards.

A state­ment co-signed by the Com­pany Sec­re­tary, Chidi Okezie and the Chief Ex­ec­u­tive Of­fi­cer, Sola David-Borha said “FRCN’s al­le­ga­tions are in­ac­cu­rate and un­for­tu­nate.”

It also said the board mem­ber­ship still re­main in­tact con­trary to FRCN’s direc­tive.

“Con­trary to the me­dia re­ports, the di­rec­tors of Stan­bic IBTC have not been ousted. The di­rec­tors, who are from Nige­ria and else­where, are rep­utable in­di­vid­u­als who up­hold the best cor­po­rate gov­er­nance prac­tices and whose cred­i­bil­ity, in­tegrity and proven track record are im­pec­ca­ble,” it said.

The state­ment also read: “Our at­ten­tion has been drawn to the me­dia state­ments by the Financial Re­port­ing Coun­cil of Nige­ria (FRCN) in which sev­eral in­ac­cu­rate and un­seemly al­le­ga­tions were made against Stan­bic IBTC Hold­ings PLC (“Stan­bic IBTC”). Al­though the mat­ter is in court, we are con­strained to re­spond to cer­tain as­pects of the re­port for the ben­e­fit of our stake­hold­ers and the gen­eral pub­lic.”

Former Chair­man of the Stan­bic IBTC Atedo Peter­side

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