The Financial Reporting Council of Nigeria (FRC) has suspended the Chairman of Stanbic IBTC bank, Mr. Peterside Atedo; Managing Director, Mrs. Sola David-Borha and KPMG’s Arthur Oginga and Dr. Daru Owei over accounting irregularities, and improper disclosures in the banks 2013 and 2014 financial statements.



The FRC in a statement on Monday said they remain 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 FRC also directed the directors of the bank to withdraw the financial statements of Stanbic IBTC Holdings Plc for years ended 31st December 2013 and 2014 and restate them in accordance with the law.



See full statement by the FRC.



REGULATORY DECISION IN THE MATTER OF FINANCIAL STATEMENTS OF STANBIC IBTC HOLDINGS PLC FOR YEARS ENDED 31ST DECEMBER 2013 AND 2014



Pursuant to Provisions of the Financial Reporting Council of Nigeria Act No. 6, 2011 (“FRC Act”) and Regulation 3 of the Financial Reporting Council of Nigeria
– Guidelines/ Regulations for Inspection and Monitoring of Entities, 2014 (“the Regulation”) some matters came to the fore from the review of the financial statements of Stanbic IBTC Holdings Plc (Stanbic IBTC) and major subsidiaries of the holding company for the years ended 31st December 2013 and 2014.



Material irregularities of the said entities were also brought to the attention of the Council by some minority shareholders of Stanbic IBTC relating to the Financial Statements of the said entity for years ended 31st December 2011, 2012, 2013 and 2014.



The issues raised by the minority shareholders were also addressed to some other regulatory agencies such as the National Office for Technology Acquisition and Promotion (NOTAP), Securities and Exchange Commission (SEC) the Central Bank of Nigeria (CBN), among others.


The Council met with NOTAP on 1st September, 2015 and have also exchanged several correspondences on the matter thereafter. A number of issues, even well beyond the complaint of the minority shareholders, which also bordered on the financial reporting of Stanbic IBTC for the relevant years, became manifest.


The Council wrote to the Securities and Exchange Commission on 3rd September, 2015 informing them that from the preliminary report from the documents at the disposal of our Council and the meetings held with Stanbic IBTC, there will be material adjustments required in the financial statements of Stanbic IBTC that may affect the decision of stakeholders. The Council requested SEC to consider withholding her authorisation of any request made by Stanbic IBTC on Rights Issue and Scrip Issue until the matter that is brought to our joint attention is resolved and the relevant financial statements corrected.


At the time, Stanbic IBTC’s attempt to enhance its operations by way of Rights Issue and Scrip Issue were publicly available. SEC graciously acceded to this request and issued a Public Notice on 7th September, 2015 suspending Stanbic IBTC’s Rights Issue pending the conclusion of the investigation by our Council.


Stanbic IBTC Holdings Plc is a company domiciled in Nigeria. Stanbic IBTC is made up of the following eight subsidiaries:
Stanbic IBTC Bank (including Stanbic Nominees Nigeria Limited)
Stanbic IBTC Pension Managers Limited
Stanbic IBTC Asset Management Limited
Stanbic IBTC Stockbrokers limited
Stanbic IBTC Trustees limited
Stanbic IBTC Ventures Limited
Stanbic IBTC Capital Limited
Stanbic IBTC Investments Limited.
Stanbic IBTC Holdings Plc is a member of Standard Bank Group with headquarters in South Africa and with a controlling stake of 53.25% in Stanbic IBTC Holdings Plc.



The Inspectorate Unit (the Panel) had a number of meetings with representatives of Stanbic IBTC between August 3, 2015 and October 16, 2015.

Ok na.....

This is serious

Great

Peterside Atedo and co. should come to terms that there is a new government in place...no longer Jonathan.

Keneking:
Great

Peterside Atedo and co. should come to terms that there is a new government in place...no longer Jonathan.

This is more of a corporate governance issue and should therefore not be politicised.

It is good that for once, a Nigerian government agency is all out to project ordinary Nigerians who constitute the bulk of minority shareholders in quoted companies. Even though we are not told the details of the material mistatement in stanbic Ibtc's financial statement, I commend FRC for taking them on.