Nigeria’s apex bank and chief regulator of the financial services sector, Central Bank of Nigeria (CBN) has cleared Stanbic IBTC Holdings Plc (SIBTC) Chairman Atedo Peterside, all the other directors of all allegations of impropriety leveled against the bank.
CBN’s decision was communicated in a letter addressed to the Executive Secretary/Chief Executive of Financial Reporting Council (FRC) dated, 2nd November, 2015 by Governor Godwin Emefiele titled, ‘RE: Regulatory Decision in the Matter of Financial Statements of Stanbic IBTC Plc for Years ended December 2013 and 2014.’
CBN said consequent upon due diligence measures, contrary to the allegation of the FRC that Stanbic IBTC did not obtain approval from National Office for Technology Promotions (NOTAP) for the payment of affiliate software licence, its investigations revealed that the bank actually obtained the necessary approval from NOTAP to pay affiliate software licence from its parent company, the Standard Bank Group for the period of three years covering 1st June, 2012 to 30th May 2015. The remittance from June 2015 to date is still awaiting approval from NOTAP.
The regulator added that with respect to the allegation of non-disclosure of intangible assets in Stanbic IBTC’s 2013 and 2014 financials, Stanbic IBTC adequately recognised the software as an intangible asset in its 2011 financial and sufficiently disclosed the disposal of the software in the 2012 financials.
It also overruled FRC on the allegation of lumping several expense items under “Others”, arguing that it is of the opinion that the items were not material enough to appear as line items in the Income Statement and that the non-disclosure of the items did not materially affect the true and fair view of the financial statements.
According to CBN, “SIBTC used its judgment to capture the donation of N275 million under “Others” because it was of the opinion that it was not a charitable donation but a mandatory contribution towards the victims of terrorism in the country. For the avoidance of doubt, this contribution was agreed at a Bankers’ Committee meeting, with the share for each bank clearly spelt out. Therefore we agree with SIBTC’s position, as presented.”
On the allegation of identified misclassifications, the CBN cleared Stanbic IBTC of any financial infringement that it did not understate or overstate its assets and liabilities, neither did it increase nor decrease its income or expenditure, such as would have caused a material of the financials. It also exonerated SIBTC that it had an obligation to accrue the relevant provisions towards the settlement of the franchise and management fees as agreed between it and Standard Bank Group.
-Leadership
