The fraudulent activities that have become the hallmark of the banking industry is again exposed as the Financial Reporting Council of Nigeria (FRC) again wielded the big stick, issuing regulatory order and suspending Atedo Peterside, Sola David-Borha and two other directors; Arthur Oginga and Daru Owei.

The regulatory order on Stanbic/IBTC is also a test case on the capability of the audit giant, KPMG with the suspension of Ayodele Othihiwa, the engagement partner of the bank for the 2013 and 2014 audited accounts that have been subject of controversy. The audit firm is now being questioned for the approach it adopted that could not detect the infractions in the two accounts.

The Financial Reporting Council (FRC) has requested that the Central Bank Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) investigate Stanbic IBTC and KPMG Professional Services for “financial misstatements”.

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 regulation, including a regular flouting of CBN regulations.

“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.”

In view of all the allegations established by the FRC, the council decided that the CBN assist by taking regulatory disciplinary actions against those expected to guarantee the integrity of the aforementioned financial statements in order to safeguard the interest of stakeholders of Stanbic IBTC.

“We are convinced that once the monies are properly accounted for and used to shore up their Tier 1 capital, the institution shall become stronger,” the panel’s resolution read in part.

“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.”

Source: https://www.thecable.ng/frc-asks-cbn-efcc-probe-stanbicibtc-kpmc and http://insidebusinessonline.com/index.php/2015/10/26/frc-issues-regulatory-order-on-stanbicibtc-suspends-atedo-peterside-david-borha-kpmg/

KPMG involving in such goes a long way to prove virtually all audited account in quoted companies in Nigeria are fraud..

How I wish both parties would be fined their 2yr profit..