Why FRC suspended Atedo, 3 Stanbic directors …… VANGUARD

stanbic-ibtc

The Financial Reporting Council, FRC, yesterday, suspended Chairman of Stanbic IBTC Holdings, Mr. Atedo Peterside, and three directors of the company from signing any financial statement, over allegations of improper disclosures in the financial statements of the bank for 2013 and 2014.

Furthermore, the Council ordered directors of the bank to withdraw the company’s financial statement for the 2013 and 2014 financial year, insisting that the statements were not prepared in line with the International Financial Reporting Council, IFRS, hence misleading.These include the Managing Director/Chief Executive of Stanbic IBTC, Mrs. Sola David-Borha, Mr. Arthur Oginga and Dr. Daru Owei.

Stanbic debunks accusations

However, management of Stanbic IBTC debunked FRC’s accusations, saying they were inaccurate and unfortunate.

FRC, in a statement published on its website yesterday, said: “The Directors of Stanbic IBTC are hereby directed to withdraw the Financial Statements of Stanbic IBTC Holdings Plc for years ended December 31, 2013 and 2014 and restate them in accordance with the provisions of Section 64 (2) of the Financial Reporting Council of Nigeria Act No. 6, 2011 and Regulation 21 of the Financial Reporting Council of Nigeria— Guidelines/ Regulations for Inspection and Monitoring of Entities, 2014.

“The FRC number of the following persons, who attested to the misleading Statements of Financial Position of Stanbic IBTC Holdings Plc for years ended December 31, 2013 and 2014, are hereby suspended 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 Act No. 6, 2011.

“Accordingly, they are not allowed to vouch the integrity of any financial statements issued in Nigeria.

“The persons are: Atedo N. A. Peterside FRC/2013/CIBN/00000001069; Sola David-Borha, FRC/2013/CIBN/00000001070; Arthur Oginga, FRC/2013/IODN/00000003181; and Dr. Daru Owei, FRC/2014/NIM/00000006666.

KPMG mentioned

“The Council shall require evidence of a second partner review and audit approach that the external auditors of Stanbic IBTC (KPMG Professional Services) adopted on quality control on the said financial statements that could not reveal these infractions.

“Accordingly, FRC number of Ayodele H. Othihiwa (FRC/2012/ICAN/00000000425), the Engagement Partner of the audit of Stanbic IBTC Holdings Plc for years ended December 31, 2013 and 2014, is hereby suspended until the investigation as to the extent of the negligence of KPMG Professional services is ascertained.

“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.”