Stanbic IBTC: FRC did not follow due process – CBN

The Central Bank of Nigeria, CBN, has reacted to recent sanctions approved by the Financial Reporting Council of Nigeria, FRCN, against the board and management of Stanbic IBTC Holding, SIBTCH.

CBN said the council did not follow due process in sacking four directors of Stanbic IBTC, including its Chairman, Mr. Atedo Peterside, Managing Director, Mrs. Sola David-Borha from the board of the bank for accounting irregularities, and improper disclosures in the bank’s 2013 and 2014 financial statements.

Others were KPMG’s Arthur Oginga, Dr. Daru Owei and Ayodele H. Othihiwa for their roles in the breach.

In a five-page letter, dated, November, 2, 2015, and signed by the CBN Governor, Mr. Godwin Emefiele, the apex bank also said the FRCN action was capable of chasing away investors and erode confidence as well as causing financial instability in the system.

The CBN said: “In the light of the foregoing facts, which clearly show that FRCN did not follow due process, the bank regrets to inform you that it is unable to accede to your request to take disciplinary action against SIBTCH. Indeed, the CBN does not see any reason to advise/compel SIBTCH to obey the sanctions metted to it by the FRCN.”

The letter was addressed to the Executive Secretary/Chief Executive Officer, FRCN, and was entitled: Re: Regulatory Decision in the Matter of Financial Statements of Stanbic IBTC Holdings Plc for Years ended 31st December 2013 and 2014.

The CBN letter with reference number: GVD/GOV/CON/DGF/93/113, also read in part: “We are seriously concerned that such a drastic regulatory decision could be taken on an entity under the regulation and supervision of the Central Bank of Nigeria (CBN) without any form of consultation with the bank, especially as the CBN is responsible for promoting safe, stable and sound financial system.

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