Stanbic IBTC kicks as FRC suspends directors, KPMG

The Financial Reporting Council (FRC) has suspended the registration of four directors of Stanbic IBTC and that of its audit engagement partner, KPMG for what it said was ‘financial misstatements’.

The FRC also called on the Central Bank Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) to investigate Stanbic IBTC and KPMG.

The council in a report released on Monday, also noted, that KPMG Professional Services, remains suspended until its innocence in the matter is ascertained.

But reacting to the report , Stanbic IBTC Holdings described the FRC allegations as “inaccurate and unfortunate”, noting, that “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.

“Stanbic IBTC is a very responsible organisation and fully complies with all extant laws and regulations in Nigeria and international best practices applicable to the conduct of its business”. Although the FRC named four directors suspended to include Atedo Peterside, Sola David-Borha, Arthur Oginga and Dare Owei, but the bank said, “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”.

The bank is alleged to have misstated its financial reports for the 2013-2014 fiscal year and ceded its banking application rights to Standard Bank of South Africa against the directives of National Office for Technology Acquisition and Promotion (NOTAP).

According to FRC, “the schedules supplied to the council by Stanbic IBTC revealed that the total fee paid to KPMG Professional Services for non-audit services was inconsistent with what was disclosed in the financial statements for the years under review”.

The bank was also alleged to have flouted a number of financial regulations, including a regular flouting of CBN regulations.
Read also: Stanbic IBTC under investigation for alleged infractions

“In 2014 for instance, a total penalty of N28,000,000 was imposed on the group. Among the contraventions was improper disclosure of public sector deposits in 2014,” FRC said in its report.

“Stanbic IBTC seems to have a penchant for poor disclosures which further corroborates the findings in this report.”

The council stated, “The Federal Inland Revenue Service is requested to ensure that the related taxes are paid and the government is not unduly short changed.

“The EFCC 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.”

But Stanbic IBTC Holdings in a statement signed by Chidi Okezie, company secretary and Sola Divid-Borha, chief executive officer on Monday, said, “The matters that FRCN alleges to be wrong are not wrong in any material respect and many are in any event not matters of financial reporting at all, but matters of business decision and judgment for Stanbic IBTC and its board of directors”.

It said, “Stanbic IBTC is the only Nigerian bank that is AAA rated by Fitch. It has met the disclosure requirements of Nigerian law and international financial reporting standards applicable in Nigeria. Contrary to the media reports, the books of Stanbic IBTC have been fully disclosed and provide a true and fair view of its assets and liabilities, profits and losses, and its overall financial position.

“Stanbic IBTC would like to reiterate that it will continue to conduct its business in compliance with extant Nigerian law and international best practices”.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now