The Central Bank of
The report signed by
Recall that the Lamido Sanusi-led CBN had removed some bank executives on the basis of lack of corporate governance.
The FRC report on CBN stated: "A number of transactions and even of a financial nature were carried out without board approvals as no board approvals were provided as requested.
This shows a very weak corporate governance of the CBN and clear evidence that statutorily allowing the CBN Governor to be both the chief executive officer of the bank as wnepotismell as chairman of the board is the greatest error made in the conception of the CBN act 2007.
According to the Financial Council Report, the board approval for the equity investment in the shares of
It said that the date of the board approval of the apex bank's financial statements was not disclosed. It further disclosed that in the CBN response, "Your Excellency is therein informed that the management letter on the financial statement is yet to be discussed by the
This is contrary to section 3 (b) of the CBN Act 2007. This is supposed to take place, considered by the Board and decision taken."
Accounting issues identified usually lead to adjustments in the financial statements before the approval of the board is secured on the accounts. It said that a number of issues on the draft management letter can testify to this.
According to the Council, what this means is that the financial statement submitted by the CBN Governor to the President was not approved by the governing board of the apex bank.
The breakdown provided to some items seems to be allocation of figures to arrive at predetermined numbers.
Giving clear instances, it said the breakdown of loan provisioning amounting to N586.703 billion has figures that seem more like figures to ensure that the total is arrived at.
Therein is staff loan of N34,789,071; bankers' payment of N900;
This should not have been accounted for under this classification. It also contains figure for
A breakdown for the
The report said that AMCON made a loss of over N2.4 trillion and also had a negative total equity of over N2.3 trillion at the end of 2011.
AMCON's 2011 accounts were signed by the board on
It said that the CBN rightly explained that AMCON's bonds are gilt-edge securities of the Federal Government of
The fact that it was not budgeted for in 2013 by the FGN coupled with the fact that the CBN was even expecting N713 billion therefrom, were enough reasons for the leadership of the CBN to have drawn the attention of
The Council in its report said: "Your Excellency is invited to note that the explanation provided by the leadership of the CBN is unsatisfactory.
Accordingly, your Excellency may wish to take the necessary steps to brief the
President by section 11 2 (f) of the
The Council further said: "It is important that quick and decisive action is taken so that the opposition to the Federal Government does not take advantage of the information and use it against the government that your Excellency was aware of the lax in CBN and allowed it to stay for political reasons.
It is also important that the CBN governor and or the deputy governors do not decide earlier than your Excellency as they may resign their appointment to foreclose the action of the Federal Government and whatever action taken thereafter shall be regarded as politically motivated.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- U.S. to Relinquish Gov't Control Over Internet
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Quiznos Files for Chapter 11