Stanbic IBTC: Shareholders fault FRC, CBN

In from Ali Smart . . .
The last may not have been heard of the Stanbic IBTC saga following the suspension of the bank’s directors as shareholders of Stanbic IBTC Holdings Plc have blamed the Financial Reporting Council (FRC) as well as the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC’s) for abdication of responsibility.
Speaking on Wednesday at a media briefing in Lagos, President of Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie said the FRC acted arbitrarily.
It may be recalled that the FRC had on Monday suspended the Chairman of Stanbic IBTC Holdings, Atedo Peterside, along with the Managing Director/Chief Executive, Stabic IBTC, Mrs. Sola David-Borha, Arthur Oginga and Dr. Daru Owei over allegations of improper disclosures in the financial statement of the bank between 2013 and 2014.
According to Okezie, the FR, which ought to be circumspect allowed sentiments to becloud its sense of judgment. “Circumspection ought to be its guiding standard.”
Okezie said, “We have regard for the board and management of Stanbic IBTC. They have conducted their business in line with sound corporate governance principles. Regulatory recklessness will wipe out gains of banking recapitalization. We reject bring down syndrome in the banking sector,” Okezie said.
He said that where a corporate body disagrees with FRC’s interpretation of its accounts, the Council ought to go to court according to Regulation 27 of the Directorate of Inspection and Monitoring Guidelines Regulations. “Instead, the FRC took to the media to make several questionable allegations against a corporate body.”

Read also: Stanbic IBTC kicks as FRC suspends directors, KPMG

He observed that FRC is currently “operating without the necessary oversight to moderate its excesses.”
He called on President Muhammadu Buhari to urgently constitute a Board for the FRC. “Such a Board will exert control and limit the excesses of the FRC which is currently run as a one-man-show by its Executive Secretary.”
Okezie also called on the President “to deploy a tested technocrat to head the Ministry of Trade and Investment,” adding that “this minister will also exert a controlling influence on the activities of the FRC and help to ensure that good intentions of government are not thwarted by the incompetence and lack of exposure of publicity-seeking and egocentric professionals.”
The FRC, he added, ought to have recognised the implication of their reckless pronouncement in an unsophisticated capital market as it could lead to panic among investors.
“Unfortunately, this recklessness has already made this happen as we have recorded losses in our share price over the last two days on account of the misguided actions of the FRC.”
Apparently giving the bank its imprimatur of support, the shareholders’ boss said: “We have always commended the transparency and commitment by the Board to conduct business only in line with world class corporate governance principles. It is on account of this that Stanbic IBTC Holdings Plc is the only bank in Nigeria that has an AAA Fitch rating.”

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