CBN hailed for overruling Stanbic IBTC sanctions

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The Central Bank of Nigeria (CBN) and the Federal High Court, Lagos, have been commended for their intervention in safeguarding the nation’s economic and investment climate.

Some shareholders told PREMIUM TIMES in separate interviews that CBN’s overruling of the Financial Reporting Council of Nigeria (FRC) and Federal High Court Lagos granting of interlocutory injunction, saved the nation from a new form of investment run.

Justice Ibrahim Buba of the Federal High Court had after listening to the prayers sought by the Stanbic IBTC Holdings on Wednesday, November 4, 2015, restrained the FRC from carrying out its sanctions against Stanbic.

Sunny Nwosu, the National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), said that CBN was in order for refusing to accede to the sanction prayers of the FRC.

Commending CBN for exonerating itself from alleged complicity implied in FRC actions, Mr. Nwosu said that ISAN had been vindicated in its earlier position on the Stanbic IBTC saga.

“We had earlier said that the FRC actions lacked due process and should not have been taken.

“Our position then and now is the FRC sanctions, suspensions and penalty will kill investment and classify our terrain as an unfriendly environment,” Mr. Nwosu said.

ISAN coordinator also said that FRC erred in its approach stressing that the act establishing the body was explicit on issues bordering on financial reporting disagreements.

Boniface Okezie, President of the Progressive Shareholders Association of Nigeria (PSAN), said that shareholders have been saved the twin pronouncements of CBN and the court.

Mr Okezie said that investors have recorded huge losses following the run on the shares of StanbicIBTC since the now overruled actions of the FRC.

He also cautioned the financial regulatory bodies to always situate their hammer within the global and national economic and financial challenges.

“We have not come out of the woods yet and regulatory actions must as a matter of urgency utilise available conflict resolution mechanism to manage the economy instead of sanctions and heavy fines in a depressed economy,” Mr. Okezie said.

Also contributing, George Ibhade, another shareholder, advocated for a consolidated approach in financial industry regulation.

Mr. Ibhade said the multiplicity of financial industry regulation always lead to multiple interpretation and adversely affects the economy.

CBN had on Tuesday overruled the FRC on the suspension from the board of Stanbic IBTC Chairman, Peterside Atedo, and the Group Managing Director, Sola David-Borha, over allegations of misreporting in the audited accounts of the bank for 2013 and 2014.

The FRC had also suspended Arthur Oginga and Daru Owei, two directors of the bank, for their alleged roles.

Also affected by the FRC order was Ayodele Othihiwa of KPMG Professional Services for his alleged complicity.

FRC had also directed the directors of the bank to withdraw the financial statements of StanbicIBTC Holdings Plc for 2013 and 2014.

The directors were asked to restate financial statements in accordance with the law.

But Godwin Emefiele, CBN Governor, in a letter to the FRC, reversed all the sanctions.

Source: PremiumTimes