Stanbic IBTC kicks as FRC suspends directors, KPMG

The Financial Reporting Council (FRC) has suspended the registration of four directors of Stanbic IBTC and that of its audit engagement partner, KPMG for what it said was ‘financial misstatements’.

The FRC also called on the Central Bank Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) to investigate Stanbic IBTC and KPMG.

The council in a report released on Monday, also noted, that KPMG Professional Services, remains suspended until its innocence in the matter is ascertained. But reacting to the report, Stanbic IBTC Holdings described the FRC allegations as “inaccurate and unfortunate”, noting, that “although the matter is in court, we are constrained to respond to certain aspects of the report for the benefit of our stakeholders and the general public. “Stanbic IBTC is a very responsible organisation and fully complies with all extant laws and regulations in Nigeria and international best practices applicable to the conduct of its business”. Although the FRC named four directors suspended to include Atedo Peterside, Sola David-Borha, Arthur Oginga and Dare Owei, but the bank said, “Contrary to the media reports, the Directors of Stanbic IBTC have NOT been ousted. The directors, who are from Nigeria and elsewhere, are reputable individuals who uphold the best corporate governance practices and whose credibility, integrity and proven track record are impeccable”. 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 regulations, including a regular flouting of CBN regulations.