CBN not competent to overrule regulatory order on StanbicIBTC, says FRC

… Alleges apex bank condoning, defending unwholesome disclosure and reporting practice.

The raging controversy on the regulatory order issued on Stanbic IBTC bank is still reverberating as the Financial Reporting Council of Nigeria has said that the Central Bank of Nigeria CBN is not competent to review or inspect its operation.

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.

CBN Governor, Godwin Ifeanyi Emefiele had in a five-page letter, dated November 2, 2015, which was 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, the announcement by the FRCN on SIBTCH was not only capable of eroding investor confidence, but inimical to financial system stability.
Emefiele said 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
Obazee in his response of November 10 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.
“His Excellency, the chief of staff to Mr President, met you and I in his office and adviced that we schedule a meeting to come up with a harmonized position as two regulators on the review of the Financial statements of stanbic IBTC for years ended 31 December 2013 and 2014”.
“He went further to state that the CBN should be sanctioned if it is discovered that the errors observed in the said financial statements are true because the CBN approved the said financial statements before they were issued”.

“At that meeting,  you claimed that what the CBN has done since you received the regulatory decision of the FRC was to get an opinion from a consortium of lawyers on the provision of FRC sct 2011. You said your next step was to invite foreign lawyers to review the opinion you received”.

“At the end of that meeting, the Chief of Staff directed that:
a . That you should write to the management of Stanbic IBTC, directing them to stop all negative publicity being sponsored against the FRC. He directed you to send a copy of that letter to me. (Up till now, you are yet to send a copy of that letter to me.
b. That a team of CBN should visit Stanbic IBTC to review the records again to know whether the errors were due to oversight or incompetence or compromise
c. That the FRC should secure a written position on d matter from the external auditors of Stanbic IBTC.
d. Finally, that you and I should agree on a date to meet thereafter and review the document received and reached a final decision”
InsideBusiness hereby serves you details of the FRC response to CBN letter of November 2.
Read pdf document here: Reply to CBN Letter
Or Check Click below to enlarge images of the letter
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Details to be released later

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