The Securities and Exchange Commission has suspended the Rights Issue of Stabic IBTC Plc following the probe of the bank by the Financial Reporting Council (FRC) for irregularities in its financials.

The FRC had last week stated that it was investigating Stanbic IBTC following a petition it received from local shareholders of the bank in respect of monies being accrued to its parent bank, Standard Bank based in South Africa.

Stanbic IBTC in July announced plans to raise N20.4 billion from the capital market through a Rights Issue and also distribute a scrip dividend to shore up its capital base before the end of the year.

The executive secretary and chief executive of the FRC, Jim Obazee explained that the council saw substance in the petition raised against the bank by its shareholders and had decided to look it up while calling for the suspension of the intended Rights Issue.

According to him, some stakeholders had written to the council drawing the attention of regulatory authorities to some unapproved transactions conducted by the bank with its foreign technical partners. “The petition from the stakeholders of Stanbic IBTC is on issues relating to Stanbic IBTC and the way they have been accruing some monies in their account. And if you accrue money in your account, well, there is nothing wrong with accrued monies, but it must be disclosed properly.”

Obazee explained that the said the accruals were requiring National Office for Technology Acquisition and Promotion (NOTAP) approvals before they can make those payments, “but the petitioner is saying that there is no need making those accruals because IBTC has not been able to secure NOTAP approval.

THISDAY had reported last week that there were indications that the planned N18 billion rights issue may not be approved until allegations of financial under dealings brought against the financial institution by its shareholders are resolved. There had been further suggestions that the bank's 2014 financial statement may be criticised and rejected by the Financial Reporting Council (FRC), should the allegations be further established by regulatory authorities.

To this end Stanbic IBTC Holdings in a statement said: "Stanbic IBTC notes the suspension by the Nigerian Securities and Exchange Commission of its proposed rights issue, pending the resolution of enquiries from certain relevant regulatory bodies. The management of Stanbic IBTC will continue to engage with the relevant regulatory bodies to ensure that these enquiries are addressed in a timeous manner. Stanbic IBTC Bank PLC, the banking subsidiary of Stanbic IBTC Holdings PLC, remains wellcapitalised and has sufficient liquidity."