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Access Bank Offer: Caveat Emptor - Business - Nairaland

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Access Bank Offer @n14.90k - Would You Invest? / First Bank Offer Website / Does Any Nigerian Bank Offer Maestro Cards? (2) (3) (4)

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Access Bank Offer: Caveat Emptor by Jairzinho(m): 5:24pm On Aug 16, 2007
ACCESS BANK

INVESTMENT RISKS (To the Price Target/Recommendati on)

Financial Shenanigans: The bank is alleged to be “cooking the books” in its desperate
quest to tell a particular story and to attract investors to its offer and raise its status within
the banking industry in Nigeria and its subsequent appeal to foreign and domestic
investors. The bank received a “qualified” annual report due to the way it handled the
goodwill on its books. We adjusted their post-tax profit downward to reflect this
contravention of accounting standards. We are also highly concerned as to how the bank
was able to almost double its post-tax profit (88.33%) from its nine-month cumulative
result to the full-year result (N3.23 billion to N6.083 billion.) The bank has not yet been
able to explain this till date and we feel that yet to be fully ascertained maneuvers were
utilized to generate this sudden turnaround.

The Audit Committee of Access Bank is not a standing committee and has the Managing
Director and the Deputy Managing Director as members! This is totally out of line and
proves further that the “maneuvering” starts at the top.

We have reviewed quite a couple of company forecasts and we are amazed and alarmed
at the extent of the unwarranted optimism expressed by the company given its forecasts.
In addition, the reporting accountants emphasize that “the forecast information is not
intended to, and does not, provide all the information and disclosures necessary to give a
fair presentation of the results of the operations of the Bank in accordance with Nigerian
Statements of Accounting Standards” – PwC.

Market price manipulation: Access Bank’s price suddenly took an aggressive spike
two months to its date of suspension moving from N11.69 to N19.32 (a rise of 65.26%), a
move unprecedented given the time frame, ignoring the artificial increase of 100% due to
the share reconstruction. We believe the sudden steep price movement soon before the
technical suspension was placed is not due to “random” market forces but the bank and
its cronies buying up their shares in excess of the daily supply.

Reckless business decisions: The management of the bank has in the recent past
taken some reckless decisions in their quest to grow inorganically. These acts brought
losses to the bank and its shareholders; the bank last year tried unsuccessfully to acquire
Afribank through a hostile takeover. The bank was forced by the regulatory authorities to
sell the acquired shares at a loss. The bank also tried unsuccessfully to buy up Union
Bank. Access Bank management is definitely not comfortable with their current position
in the Nigerian banking industry; this is a good thing. The approaches they are willing to
take to become BIG overnight is what should give potential investors sleepless nights.




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The information herein represents the views of ARM Investment Managers and its subsidiary company, ARM Trustees Limited, on asset management, financial advisory and trusteeship services. ARM and its subsidiary are regulated by the Nigerian Securities & Exchange Commission.The registered office of ARM is at 1 Mekunwen Street , Off Oyinkan Abayomi, P.O. Box 55765 , Ikoyi, Lagos . Telephone: 234 -1-2692097, 2692976. www.arm.com. ng
Re: Access Bank Offer: Caveat Emptor by nossycheek(f): 10:08am On Aug 17, 2007
What you have written here is the truth or you are just out to pull access down. And if they the truth, why did it take you so long to bring this up after people have paid for the shares?
Re: Access Bank Offer: Caveat Emptor by Jairzinho(m): 1:27pm On Aug 17, 2007
I passed the info as soon as I got it(yesteday).
I'll expect any investor to double check.
Its not to bring anybody down ,but to give you more info to make an informed decision.
Cheers
Re: Access Bank Offer: Caveat Emptor by nossycheek(f): 3:49pm On Aug 17, 2007
Thanks for the info. Only that it came a bit late as people like have paid.
Re: Access Bank Offer: Caveat Emptor by otokx(m): 4:14pm On Aug 17, 2007
I have never really liked those guys.
Re: Access Bank Offer: Caveat Emptor by Lagoschic: 4:29pm On Aug 17, 2007
Thank God i only invested 10 million
Re: Access Bank Offer: Caveat Emptor by Vitastraka(m): 4:31pm On Aug 17, 2007
The material is false. Basically a hack job

IBTC and FSDH recommended Access to clients. These brokerages have in house research powerhouses that would have smelled any nonsense ages ago

By the way CSL securites who was said to have issued this analysis has come out and denied it, and SACKED the analyst who wrote it
Re: Access Bank Offer: Caveat Emptor by Michaeli: 5:29pm On Aug 17, 2007
CSL or ARM?
Re: Access Bank Offer: Caveat Emptor by easimoni(m): 6:44pm On Aug 17, 2007
Michaeli:

CSL or ARM?

CSL worte the report and fired the guy who worte it!
Vitastraka:

The material is false. Basically a hack job

IBTC and FSDH recommended Access to clients. These brokerages have in house research powerhouses that would have smelled any nonsense ages ago

Really? You don't think there is something fishy about almost 100% increase in profits for a bank? NOthing wrong with your MD and DMD sitting on the audit committee? There was a lot of speculation in the report and speculation has no place in such a report, but the guy asked questions any reasonable investor should have asked him/herself.
Re: Access Bank Offer: Caveat Emptor by easimoni(m): 6:45pm On Aug 17, 2007
Lagoschic:

Thank God i only invested 10 million

Only? I want to be like you when I grow up!
Re: Access Bank Offer: Caveat Emptor by wanaj0: 6:52pm On Aug 17, 2007
easimoni:

CSL worte the report and fired the guy who worte it!
Really? You don't think there is something fishy about almost 100% increase in profits for a bank? NOthing wrong with your MD and DMD sitting on the audit committee? There was a lot of speculation in the report and speculation has no place in such a report, but the guy asked questions any reasonable investor should have asked him/herself.

The MD and DMD are in the boards audit committee not the shareholders committee. The shareholders audit committee has two non executive directors as members.

While Access Bank may be a bad buy, the analysts report did a poor job.
Re: Access Bank Offer: Caveat Emptor by DisGuy: 7:04pm On Aug 17, 2007
about time! have you noticed theres never bad news about companies on the nse? everything is 'nice and proper'.
So now we know anybody that write any bad or negative report about companies in nigeria will be fired undecided in a land where people don't like being questioned/criticised
Re: Access Bank Offer: Caveat Emptor by wanaj0: 7:16pm On Aug 17, 2007
Dis Guy:

about time! have you noticed theres never bad news about companies on the nse? everything is 'nice and proper'.
So now we know anybody that write any bad or negative report about companies in nigeria will be fired undecided in a land where people don't like being questioned/criticised

There are reports that classify stocks as SELL or HOLD! But note that so many reasons are responsible for that.

In the report being discussed, there are factual errors!!!!

The issue of audit committe is just one. What he said was false!

Accusing them of cooking books is not something you say without having solid evidence. KPMG the external auditors expressed an opinion. They qualified the report based on the treatment of goodwill. However, CBN asked banks to treat goodwill like that as againts the Companies and Allied Matters Act. Most banks that paid dividend after merger did that!

I don't like Access but I also do not need someone to lie against them!
Re: Access Bank Offer: Caveat Emptor by yodiyokun(f): 7:44pm On Aug 17, 2007
wanaj0:

The MD and DMD are in the boards audit committee not the shareholders committee. The shareholders audit committee has two non executive directors as members.

While Access Bank may be a bad buy, the analysts report did a poor job.

Thats the point; what is the MD doing in the board audit committee!!!! Corporate governance suggests that the management should not be part of the auidt commitee , this is strictly a perogative the non executive dircetors and not MD and DMD. How does the Chief Internal Auditor maintain independence?
Re: Access Bank Offer: Caveat Emptor by Seun(m): 8:00pm On Aug 17, 2007
Wasn't that email supposed to be confidential?
Re: Access Bank Offer: Caveat Emptor by easimoni(m): 11:36pm On Aug 17, 2007
Seun:

Wasn't that email supposed to be confidential?
All powerful and gracious host,
The email went out to all who received the report. Besides it been published on Proshare.
Re: Access Bank Offer: Caveat Emptor by sosilly4b(m): 2:02am On Aug 18, 2007
Guy!This is very serious o.Unfortunately a lot of ppl have invested based on their improved qouted price on the stock exchange.So what do you suggest and how authentic is this material?
Re: Access Bank Offer: Caveat Emptor by danalyst(m): 6:25pm On Aug 19, 2007
while i appreciate all contributors to this thread, i must advise that we treat this information with utmost seriousness it deserves, though it is belated as millions of naira has been invested already. with ten 10 days to go, we can still save some coins.

As an AUDITOR myself, the first question to ask is: Is the banks audited accounts truly QUALIFIED? If it was, did the management disclose this in the PROSPECTUS?

Am sure it was not, else IBTC and FSDL would not knowingly recommend it to the public. by retaining Goodwill in the books in contravention to GAAP, the bank was able to overstate both profit and assets to the value of the goodwill.

2. the poster quoted the reporting accountants (PWC) report, was that quotation true? if true then the bank MUST have been cooking up books to the detriment of the shareholders and the investors.

3. On the Audit Committee, it is not only MORALLY UNACCEPTABLE for both the MD and DMD to be part of the committee but also a negation of the tenets of EFFECTIVE GORVENANCE. While the CAMA 1990 requires minimum of 3 shareholders and 3 directors as members of the committee, it was not envisaged that the MD and DMD whose Activities are under SCRUTINY would be members of the committee. IT SHOWS A GREAT CONTROL LAPSE INCAPABLE OF FORSTALLING AND PREVENTING ANY MANAGEMENT FRAUD AND IRREGULARITY.

4. Given the above, i have always posited that the Nigerian Stock market(NSM) is not EFFICIENT (See my thread: is the stock market truly efficient?). the share price does not include all known information as it ought to, hence the NSM is RISKY!!!.

5. To the poor analyst that was sacked for releasing this info, that's the price you pay for DISCLOSING EXECUTIVE SECRET. take heart, TIME WILL DEFINITELY VINDICATE YOU!!!
Re: Access Bank Offer: Caveat Emptor by Analysts: 10:18am On Aug 20, 2007
I know Nigerians to be brilliant! Infact, i really appreciate this discoveries.

I said it sometime ago on this forum, people were asking for my head, they even asked Seun to banned me from this forum. Thank to almighty, am still alive! But one thing also know Nigerians for is we too dey do Follow-follow without open our hears and eyes! all this facts are there for you to see. What you need is time and commitment.

I raised the issue of SHENANIGHAN against the bank! EVEN before people started commiting their funds but behold i was a liar then.

Well, everybody is entitle to his or her opinion but CAVEAT EMPTOR!

Mr YODIYOKUN!

All the question you raised surprised me! As an auditor and Investor--- How do you monitor your Investment? The audited report of the company was published in Nigerian Dailies for over one week. You are still asking for the validity of the statements.

Well may God Help us in this Country!

Let me give you another Hint---------- THE SOLUDIAN POLICY ON CONSOLIDATION IS NOTHING BUT ARTIFICIAL SUCCESS BUT IN THE REAL TERMS IT IS A FAILURE.

FACTS:-

Synergistic effect of Consolidation should be and not limited to---

1- Idle fund withing the bank's portfolio
2- Drastic reduction in the interest rate (Lending rate)
3- Huge working capital for the banks
4- Successful financial Integration amongst the combined banks------

This is just a hint, SOMEBODY should help me find out and either hail me or Crucify me on this.\

Before consolidation interest rate was within the range of 22%-28% varies from banks and volume of transaction.

And after Consolidation--- Interest rate is still about 20%-22%------ In the real terms CAN YOU CALL THIS A SUCCESS? where free fund in banks should force interest rate to about 8-10%.

Most of the banks suffered working capital where consolidation suppose to bring about huge working capital for banks-------

The major shock we are going to see is in the area of the FINANCIAL INTEGRATION------ I BE AUDITOR OOOOOOOOOOO AND WE DEY C THINGS!
Re: Access Bank Offer: Caveat Emptor by Analysts: 10:39am On Aug 20, 2007
I am sorry YODIYOKUN, I wanted to reference to DANALYST
Re: Access Bank Offer: Caveat Emptor by redredwyne(m): 10:44am On Aug 20, 2007
I do nto think that report emanated from ARM because we published a report on Access bank's P.O and it was declared as a 'BUY', though for the short term. I have attached a copy of the report for everybody's perusal

Re: Access Bank Offer: Caveat Emptor by Michaeli: 3:29pm On Aug 20, 2007
i think this whole thing vindicates my contributions as a shareholder long before the offer came out,

https://www.nairaland.com/nigeria/topic-57763.0.html
Re: Access Bank Offer: Caveat Emptor by wanaj0: 5:14pm On Aug 20, 2007
yodiyokun:

Thats the point; what is the MD doing in the board audit committee!!!! Corporate governance suggests that the management should not be part of the auidt commitee , this is strictly a perogative the non executive dircetors and not MD and DMD. How does the Chief Internal Auditor maintain independence?

Don't understand what you are talking about.

The board has its own audit committee as part of its operation. That is the duty of the board of directors.

The Bank staturilly also has an audit committee chaired by a non executive director with shareholders as members!
Re: Access Bank Offer: Caveat Emptor by wanaj0: 5:29pm On Aug 20, 2007
danalyst:

while i appreciate all contributors to this thread, i must advise that we treat this information with utmost seriousness it deserves, though it is belated as millions of naira has been invested already. with ten 10 days to go, we can still save some coins.

As an AUDITOR myself, the first question to ask is: Is the banks audited accounts truly QUALIFIED? If it was, did the management disclose this in the PROSPECTUS?

Am sure it was not, else IBTC and FSDL would not knowingly recommend it to the public. by retaining Goodwill in the books in contravention to GAAP, the bank was able to overstate both profit and assets to the value of the goodwill.

2. the poster quoted the reporting accountants (PWC) report, was that quotation true? if true then the bank MUST have been cooking up books to the detriment of the shareholders and the investors.

3. On the Audit Committee, it is not only MORALLY UNACCEPTABLE for both the MD and DMD to be part of the committee but also a negation of the tenets of EFFECTIVE GORVENANCE. While the CAMA 1990 requires minimum of 3 shareholders and 3 directors as members of the committee, it was not envisaged that the MD and DMD whose Activities are under SCRUTINY would be members of the committee. IT SHOWS A GREAT CONTROL LAPSE INCAPABLE OF FORSTALLING AND PREVENTING ANY MANAGEMENT FRAUD AND IRREGULARITY.

4. Given the above, i have always posited that the Nigerian Stock market(NSM) is not EFFICIENT (See my thread: is the stock market truly efficient?). the share price does not include all known information as it ought to, hence the NSM is RISKY!!!.

5. To the poor analyst that was sacked for releasing this info, that's the price you pay for DISCLOSING EXECUTIVE SECRET. take heart, TIME WILL DEFINITELY VINDICATE YOU!!!

Please go and read the audited report of Access bank again.

The financial statement was qualified. The reason was stated in the report. Access bank followed due process. Had a board meeting, called an AGM, got the Federal high court sanction. Even had a CBN letter asking banks that wanted to treat their goodwill in that way so as to pay dividend. Basic problem was that it contravenes the Companies and Allied Matters Act which never envisaged that kind of problem. All most all teh banks that merged and wanted to pay dividend were faced with this problem hence CBN's decision to allow them to 'contravene' the act. This was clearly stated in the audited financial statement.

As an auditor, you should now that qualification of an account does not mean that the books were cooked!!! It only means that the auditors are not confident in expressing an opinion on that part of the account. Basically, PWC does not agree that they should contravene the Companies and Allied Matters Act. Access management however felt otherwise which was why they were not bothered by its inclusion in the account and it was not an issue at the AGM with teh shareholders present!

On audit committee, please go over the financial statement again! Access Board has an audit committee among other committees to which the MD and DMD are members as part of the board! No shareholder is in this committee.

The audit committee adressed by CAMA has a non executive director as chairman with other shareholders. The MD and DMD are not members of that committee. Don't understand why people must LIE just to pass a view across.

The Stock market may not be efficient but that is not the making of Access Bank.

The poor analyst was sacked for incompetence and negligence of duty! He made so many factual errors for which Access can sue FCMB/CSL!!!!!! How dare you accuse an organisation of cooking its books just because the account was qualified! That is an indictment on PWC that went ahead to express an opinion on the statement.

While I don't personally like Access Bank, it is obvious that the said analyst is either incompetent or negligent based on his report.

For you auditor, it will be nice if you read the audited statement of Access bank before passing comments. Your treatise is based on assumptions!
Re: Access Bank Offer: Caveat Emptor by Aporo: 6:15pm On Aug 20, 2007
I am quick to point out that Corporate Governance places the highest premium on the Board Audit Committee over and above that constituted by shareholders alone or with directors.

The fundamental assumption of corporate governance principles is that the hub of a company's activities is conceptualized, initiated and driven at the Board level and hence the emphasis to have a functional, vibrant and independent Audit Committee at the Board level .

On independence, there is no strict rule of corporate governance (and i stand corrected) that stipulates that MDs or DMDs can not be "a part" of the Board audit committee. In most cases, MDs and DMDs are members of Board Audit Committees by attendance and not (in a lot of cases) having the powers to vote as committee members. The established yardstick espoused by Corporate Governance principles and best practices is to have a true balance between the Non Executive Elements in the Audit Committee and the Executive Elements - MDs, DMDs, CFOs, FDs etc (even if in attendance). These equally applies to the Board as well.

However, I must note that a Company may by its articles of association preclude executive directors from becoming members of the Board Audit Committee (someone should be kind enough to guide the house if this is the case with Access Bank). If that is not the case, let us except the issue of their MD and or DMD being part of the Board audit committee. A lot more beyond their mere membership of the Committees should be considered to come to some conclusion as far as corporate governance is concerned.

Fairness to Access Bank as well as those who have invested therein demand that we remain objective in our analysis!!
Re: Access Bank Offer: Caveat Emptor by abocana: 3:01am On Aug 21, 2007
It better i tear this access bank form, 'don't wanna gamble with my money.

I really confused, i wouldn't like any drama in the near future with my money.

I am always looking to invest medium to long term.

Althought,i will really appreaciate any reason infom again.i'm thinking of sending access bank form tomorrow by courier
to nigeria.Argument about access bank on this forum is not encouraging.
Re: Access Bank Offer: Caveat Emptor by nipalm(m): 6:23pm On Aug 22, 2007
Where can i get a form to download to buy into Access bank shares?
Re: Access Bank Offer: Caveat Emptor by danalyst(m): 6:46pm On Aug 22, 2007
wanaj0:

Please go and read the audited report of Access bank again.

The financial statement was qualified. The reason was stated in the report. Access bank followed due process. Had a board meeting, called an AGM, got the Federal high court sanction. Even had a CBN letter asking banks that wanted to treat their goodwill in that way so as to pay dividend. Basic problem was that it contravenes the Companies and Allied Matters Act which never envisaged that kind of problem. All most all the banks that merged and wanted to pay dividend were faced with this problem hence CBN's decision to allow them to 'contravene' the act. This was clearly stated in the audited financial statement.

As an auditor, you should now that qualification of an account does not mean that the books were cooked!!! It only means that the auditors are not confident in expressing an opinion on that part of the account. Basically, PWC does not agree that they should contravene the Companies and Allied Matters Act. Access management however felt otherwise which was why they were not bothered by its inclusion in the account and it was not an issue at the AGM with the shareholders present!

On audit committee, please go over the financial statement again! Access Board has an audit committee among other committees to which the MD and DMD are members as part of the board! No shareholder is in this committee.

The audit committee adressed by CAMA has a non executive director as chairman with other shareholders. The MD and DMD are not members of that committee. Don't understand why people must LIE just to pass a view across.

The Stock market may not be efficient but that is not the making of Access Bank.

The poor analyst was sacked for incompetence and negligence of duty! He made so many factual errors for which Access can sue FCMB/CSL!!!!!! How dare you accuse an organisation of cooking its books just because the account was qualified! That is an indictment on PWC that went ahead to express an opinion on the statement.

While I don't personally like Access Bank, it is obvious that the said analyst is either incompetent or negligent based on his report.

For you auditor, it will be nice if you read the audited statement of Access bank before passing comments. Your treatise is based on assumptions!

@ wanajo,
i agree with you that QUALIFICATION of AN AUDITOR'S REPORT does not MEAN COOKING UP BOOKS but inability of the AUDITORS to express an INDEPENDENT OPINION ON THE FINANCIAL STATEMENT OF THE COMPANY. The Access bank case does show the FAILURE OF THE MANAGEMENT TO COMPLY WITH STATUTORY PROVISIONS -CAMA 90 AND BOFID 97- hence a CONTROL LAPSE.

the qualified auditor's opinion  was further butress by the reporting accountant's report that ADEQUATE INFORMATION WERE NOT AVAILABLE TO ENABLE THEM EXPRESS OBJECTIVE OPINION ON THE OFFER.

when considered in wholistically, the control lapse is APPARENT in Access bank. if i may ask, HOW MANY OTHER BANKS HAVE THEIR AUDITED ACCOUNTS QUALIFIED? if your position is to be taken with seriousness? What is the implication of the management's failure to amortize GOODWILL as envisaged by IASC, NASB, CAMA 1990 and other relevant pronouncement? of, overstatement of assets and profit. capable of deceiving GULLIBLE INVESTORS.

on the audit committee, i may have to confirm that because am having prob opening it on my sys.

on the SACK OF THE POOR ANALYST, we are not in the position to judge. but as you rightly posted, ACCESS BANK HAS NOT SUED his company for VICARIOUS LIABILITY, maybe they are considering their CHANCES. you never can say, but i MAINTAIN THAT time WILL JUDGE HIM
Re: Access Bank Offer: Caveat Emptor by wanaj0: 7:18am On Aug 23, 2007
danalyst:

@ wanajo,
i agree with you that QUALIFICATION of AN AUDITOR'S REPORT does not MEAN COOKING UP BOOKS but inability of the AUDITORS to express an INDEPENDENT OPINION ON THE FINANCIAL STATEMENT OF THE COMPANY. The Access bank case does show the FAILURE OF THE MANAGEMENT TO COMPLY WITH STATUTORY PROVISIONS -CAMA 90 AND BOFID 97- hence a CONTROL LAPSE.

the qualified auditor's opinion was further butress by the reporting accountant's report that ADEQUATE INFORMATION WERE NOT AVAILABLE TO ENABLE THEM EXPRESS OBJECTIVE OPINION ON THE OFFER.

when considered in wholistically, the control lapse is APPARENT in Access bank. if i may ask, HOW MANY OTHER BANKS HAVE THEIR AUDITED ACCOUNTS QUALIFIED? if your position is to be taken with seriousness? What is the implication of the management's failure to amortize GOODWILL as envisaged by IASC, NASB, CAMA 1990 and other relevant pronouncement? of, overstatement of assets and profit. capable of deceiving GULLIBLE INVESTORS.

on the audit committee, i may have to confirm that because am having prob opening it on my sys.

on the SACK OF THE POOR ANALYST, we are not in the position to judge. but as you rightly posted, ACCESS BANK HAS NOT SUED his company for VICARIOUS LIABILITY, maybe they are considering their CHANCES. you never can say, but i MAINTAIN THAT time WILL JUDGE HIM

Please the same thing that Access did with Goodwill was also done by IBTC as per its merger with Chartered Bank. It is included in the tender offer document!!!!!!! All this was done by the approval of CBN. Yes they contravene CAMA rules which CBN felt was appropriate because CAMA did not envisage the problem that arose from consolidation. They also got a Federal High Court sanction to go ahead with the treatment. KPMG was just not satisfied with the treatment! They still went on to say that the report was a TRUE and FAIR reflection of the affairs of Acces Bank. Note that the major reason why Access Bank went this route was because they wanted to pay dividend! The shareholders are not willing to wait for 5 years before getting dividend. Soludo had to give approval or else it will be a disincentive for mergers

On the audit committe they do have the corporate audit committee as required by law with a Non executive director as chairman and some shareholders as members. The MD/DMD are not members of that committee.

The company howecer also have a board audit committee made up of board members. That is an internal arrangement of Access Bank so nothing strange here.

Many times banks contravenes BOFIA for various reasons! SOmetimes they do it intentionally so will not say that it is always due to control lapses. Each has to be looked at on its own merit. GTB, which purportedly is one of the best in corporate governance do pay fines for non compliance with BOFIA!

While not a fan of Access Bank, the analyst goofed in that his report. Presenting lies as fact!
Re: Access Bank Offer: Caveat Emptor by Aporo: 9:43am On Aug 23, 2007
@ Wanajo

wanaj0:


The company howecer also have a board audit committee made up of board members. That is an internal arrangement of Access Bank so nothing strange here.

Many times banks contravenes BOFIA for various reasons! SOmetimes they do it intentionally so will not say that it is always due to control lapses. Each has to be looked at on its own merit. GTB, which purportedly is one of the best in corporate governance do pay fines for non compliance with BOFIA!


Interestingly, in the light of best practice demands, the Board Audit Committee which you seem to under-emphasize as an internal arrangement is (or should be) the most crucial of all the different Audit Committees a company may set up.

On the growing contravention of BOFIA by Banks, i am alarmed at the catastrophic precedent this development lays. I find it difficult to accept that the Federal High Court encouraged the contravention of a Federal Statute (CAMA) by Access Bank. I have not read the judgment but the court yes, could decide that CAMA in the circumstances was not applicable but not that it should be contravened intentionally as the Court is as bound as the banks by a valid and unrepealed law which CAMA is in this case. Please re-confirm details of the Court's pronouncement to the house!!

CONTRAVENTION OF OUR LAWS BY ANY INDIVIDUAL OR CORPORATE BODY MUST BE DISCOURAGED AND CONDEMNED AT ANY LEVEL FOR THE SANCTITY OF OUR LAWS AND LEGAL SYSTEM!!
Re: Access Bank Offer: Caveat Emptor by wanaj0: 10:40am On Aug 23, 2007
Aporo:

@ Wanajo

Interestingly, in the light of best practice demands, the Board Audit Committee which you seem to under-emphasize as an internal arrangement is (or should be) the most crucial of all the different Audit Committees a company may set up.

On the growing contravention of BOFIA by Banks, i am alarmed at the catastrophic precedent this development lays. I find it difficult to accept that the Federal High Court encouraged the contravention of a Federal Statute (CAMA) by Access Bank. I have not read the judgment but the court yes, could decide that CAMA in the circumstances was not applicable but not that it should be contravened intentionally as the Court is as bound as the banks by a valid and unrepealed law which CAMA is in this case. Please re-confirm details of the Court's pronouncement to the house!!

CONTRAVENTION OF OUR LAWS BY ANY INDIVIDUAL OR CORPORATE BODY MUST BE DISCOURAGED AND CONDEMNED AT ANY LEVEL FOR THE SANCTITY OF OUR LAWS AND LEGAL SYSTEM!!

So who should be in the board audit committee? Non board members?? The board audit committee is chaired by a non executive director with the MDand DMD as members. Do you want a committee conisting of non executive directors only?

well, CBN that regulates the bank is in support of the goodwill treatment.

Was not at the court but it was clearkly stated that they got a federal high court order on 27 September 2006 to create a special reserve account from its share premium account for the purpose of writting of the goodwill on the Company's balance sheet as at 31st March 2006! Now other banks like IBTC did the same thing why single out Access?

Now there was only one contravention for which the bank was duely penalised with a fine of N3m. Offence was failure to obtain CBN's approval for investment!!!!!
Re: Access Bank Offer: Caveat Emptor by Aporo: 11:01am On Aug 23, 2007
@Wanajo

I never had issues with Access MD or DMD being a part of the committee. My attempt was to clarify the over-riding importance of the Board Audit Committee over the other Audit Committees set up by the Company. Its a norm for non-executive directors to chair and indeed dominate the proceedings of the audit committee for objectivity and independence sake.

I reiterate my appeal to condemn willful and intentional contravention of valid laws under any guise. If indeed CBN is at the root of this, i will suggest that other legal alternatives besides engendering contravention of valid laws by Banks be explored. Nigeria's long term interests will certainly be served if this institutional anomaly is rectified with dispatch!

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