The chairman of Stanbic IBTC, Atedo Peterside and the bank’s managing director, Mrs. Sola David-Borha have been suspended by the Financial Reporting Council of Nigeria, FRCN, over financial misconduct.
Atedo and Mrs. David-Borha were handed down suspension alongside two staff of accounting and business advisory services firm, KPMG, Arthur Oginga and Daru Owei over allegation that they falsified IBTC’s financial records in the bank’s 2013 and 2014 financial statements and paid billions of naira as Management/Franchise and IT fees to its controlling shareholder without regulatory approvals among other infractions.
IBTC’s chiefs were suspended for attesting to ‘misleading’ financial statements and would remain suspended till investigations are concluded, the council said in a statement, on Monday.
The council faulted several inconsistencies in the bank’s reporting, including failure or refusal to disclose what exactly millions of naira grouped under ‘donations’ and ‘others’ were used for.
It said that the total fee IBTC paid to KPMG Professional Services for non-audit services was found to be inconsistent with what was disclosed in the financial statements for the year under review.
“The council observed that Stanbic IBTC regularly flouts CBN regulations. In 2014, for instance, a total penalty of N28 million was imposed on the group.
“Stanbic IBTC seems to have a penchant for poor disclosures which further corroborates the findings in this report,” the statement read in part.
Atedo Peterside and Mrs. Sola David-Borha’s suspension is coming on the heels of the clamour for their resignation by the association of IBTC minority shareholders in a petition to the National Office of Tech¬nology Acquisition and Promotion (NOTAP), the Financial Reporting Council of Nigeria (FRCN), the Securities Exchange Commission (SEC), and the Central Bank of Nigeria(CBN), accusing them of financial malpractices.