The Financial Reporting Council (FRC) has maintained that the council has no intention to jettison its enforcement of financial reporting standard rules on religious organisations, adding that most Pentecostal churches have failed to render their financial transactions.
The council’s Executive Secretary/Chief Executive Officer, Jim Obazee made this known at a public lecture organised by the Chartered Institute of Personnel Management of Nigeria (CIPM).
Obazee who revealed that only 89 out of the 23, 216 registered churches in the country have complied till date, said that that several Pentecostal churches have refused to adhere to the law.
Rather they have been fomenting troubles and dragging the council to court.
He said: “In keeping other peoples’ money, you have to prepare account. That is why churches fought me so badly, took me to court as a person and then my office too. Mosques and orthodox churches freely. complied, but those Pentecostal churches called me to ask questions.
“They said: ‘This church is church of God and we are accountable to God.’ And I told them:’ ‘Very good, so you must take this church to heaven, you can’t operate it here’. When public funds are involved, government needs to ensure proper accountability.
“Religious organisations are ordinarily set up as ‘not-for-profit’ and they remain institutions of public character. The challenge, however, is a trend where churches and mosques start dabbling into non-charity ventures like schools, hospitals and so on.
“When you set up a church, your motive is to ensure that people are well focused to go to heaven. Then the money in the church should be targeted at ensuring that people are helped to do that. If you want to set up a school, then it should be free for all your members’ children. If you charge any money, then you are in the same league with other schools outside that are paying taxes to the government.
“If you set up schools, hospitals and the likes under a church, there is a high likelihood that you will be engaging in non-charitable activities within charity. If you are doing that, then what stops Dangote from setting up a mosque and having all his cements, rice and sugar under it?
“That is actually what some churches and mosques are doing.”