STANBIC IBTC BANK IN REGULATOR'S SUSPENSION SAGA.

The Securities and Exchange Commission (SEC) has suspended Stanbic IBTC bank's N20.4 billion right issue. This was done yesterday, pending the conclusion of investigation by the Financial Reporting Council of Nigeria into allegations of financial impropriety by the group. “This is to inform the investing public (particularly the shareholders of Stanbic IBTC Holding Company Plc) that the proposed rights issue earlier approved by the commission is hereby put on hold in view of letters received from the National Office for Technology Acquisition and Promotion, the Central Bank of Nigeria as well as the Financial Reporting Council" a notice from the website read. “The Securities and Exchange Commission has also been notified of an ongoing investigation by the FRC on the financial statements of Stanbic IBTC Holding Plc.” The Executive Secretary/Chief Executive Officer, FRCN, Mr. Jim Obazee, had disclosed this after a meeting with the Director-General, NOTAP, Mr. Dan-Azumi Ibrahim, in Abuja. Obazee had explained that the petition from the stakeholders of Stanbic IBTC was related to the way the group had been accruing some money in its account. He added, “And if you accrue money in your account, well, there is nothing wrong with accrued money, but it must be disclosed properly. “Now, they said the accruals were requiring the NOTAP approvals before they can make those payments. Now, the person petitioning is saying that there is no need making those accruals because Stanbic IBTC has not been able to secure NOTAP approval. “The petition kept coming and then we invited Stanbic IBC to hear their side in the matter. And listening to their side of the story, we believe that the petitioners have a good case.” Obazee had explained that apart from the protection of the rights of shareholders, the agency was interested in the case because the Federal Government might have lost huge revenue from taxes if the bank was actually making the deductions from profit before tax without necessary approvals from the NOTAP. Similarly,BGL a very well known Investment Bank with strong ties to an influential and extremely wealthy former Bank Chief had its board suspended by SEC while being investigated for financial misappropriations.