• For publishing the controversial 2012 Financial Report online• Presidency embarrassed
THE smooth take off of in office of the new Central Bank governor,
Mr. Godwin Emefiele, ran into stormy waters recently due to the
unauthorized uploading of the apex bank's 2012 financial report on the
apex bank's website. National Daily learnt that
the presidency was irked by that development which led to Mr.
President summoning the Attorney General of the Federation Mr. Mohammed
Bello Adoke over the issue. A source at the Presidency told National
Daily that the Attorney General verbally queried Mr Emefiele on why the
apex bank uploaded on its website, a report he is well aware of the
issues and controversies surrounding it. This led to the pulling down of
the 2012 Financial Report as soon as words got to the Bank that the
President was embarrassed by their action. The source further hinted
that the President got in touch with the Attorney General of the
Federation Mohammed Bello Adoke to look into the consequences that may
arise from the publication of the said report. The attorney general was
said to have informed the CBN governor on the legal implications of
such, especially as the Federal Government, and other agencies of the
government are still in court with the erstwhile governor of the Bank,
Sanusi Lamido Sanusi on issues bordering mostly on the 2010 report of
the Bank.
National Daily also learnt that the Financial Reporting
Council of Nigeria expressed their reservations on the issue to the
Central Bank Management. The FRC was said to have demanded that the Bank
investigate what led to that brazen development especially as all
members of the bank's senior management team are in the know of the
controversies trailing that Report and that it is responsible for a
pending court case.
However, a source at the Central Bank told
National Daily that contrary to insinuations that the governor was
ordered to yank the Report off the Bank's website, that it was the
governor who ordered that the 2012 report be pulled down from the
website. According to this source who craved anonymity because this
issue is outside her jurisdiction, it was the Bank's Director of
Research Dr. Charles Mordi who without approval from the Board or the
governor instructed one of his staff to upload the Report in the
website. Sensing that such directive might put him in trouble, the said
staff requested that the Director put the request in writing as an
approval from him, which he did, and the Report was approved. She
further said that a day after the entire Bank was in turmoil as people
were seen running around discussing in hush tones. It was later that the
news broke that some people who knew how controversial that report was
and the problem it could cause the management of the Bank brought it to
the knowledge of the governor and deputy governor Dr. Sarah Alade. This
development the source said did not go down well with the governor who
ordered the Dr. Mordi to yank off the report from the website with
immediate effect. A flustered Mordi was said to have denied giving the
approval for uploading of the report, shifting the blame on the
technical officer who obeyed an instruction.
It could be recalled
that the bank's inability to publish its 2012 financial report was
responsible for the crisis that led to the suspension of the former CBN
governor. Prior to the suspension of the governor, questions were raised
over the 2012 financial report of the Bank because of series of
infractions detected in the apex bank's audited account for the year.
The situation then led to talks within the financial sector that the
Bank cannot balance its book. That was heightened by the fact that the
apex bank's auditors Ernst and Young went through without appending
their signature on the report, a pointer to the fact that they were not
convinced about the bank's account. This was based on the fact that an
audit report is worthless if it does not carry the signature of the
auditor.
This led to the suspension of Mallam Sanusi Lamido Sanusi.
It is on record that the President based on the preliminary findings of
the FRC that reviewed the bank's operation and its 2012 account, which
the CBN board and Ernst Young, its auditor did not signed wrote to the
National Assembly,and the board of the CBN to intimate them on why the
government decided to suspend the governor.
It could be recalled
that the governor was queried over 22 infractions discovered in the apex
bank's book. The response, it was learnt, was not satisfactory while
the Presidency also wanted to put things in proper order ahead of the
resumption of a successor to Sanusi Lamido who is expected to leave
office on June 2. Sources disclosed that the bank's management violated
Sections 6, 49, and 50 of the CBN Act and this is reflected in the
accounts and explain why the accounts have not been signed by relevant
authorities. Section 6 (3d) provides that the board of the bank shall
make recommendation to the President for the appointment of auditors in
accordance with Section 49 of this act, the provision of the necessary
facilities and the rates of remuneration. Presidency sources said the
CBN management did not seek the approval of the President on the
appointment of Ernst and Young, its auditor and the N400 million
allegedly approved as its remuneration.
The management also ran foul
of Section 49 (4) of the CBN Act which stipulates that “the bank shall
as soon as may be practicable after the last day of each month make up
and publish a return of its assets and liabilities as at the close of
business on that day, or if that day is a holiday, as at the close of
business on the last preceding business day.”Section 50 (5) provides
that “a copy of the return referred to shall be forwarded to the
president and shall be published in the gazette.”
Sources also
revealed that the current management has never, since the assumption of
office of Sanusi, published its account or submitted its monthly report
to the President or publish them in the gazette.The Presidency is also
said to have condemned the failure of the apex bank to transit to the
International Financial Reporting Standards (IFRS), the new accounting
regime which banks under its supervision have since adopted. Sources
said the Presidency became suspicious when the CBN could not submit its
2012 account to the Financial Reporting Council (FRC), the body with the
mandate to ascertain the compliance of companies with IFRS. Rather, the
bank requested seven years' grace for it to be able to transit to IFRS.
The President reportedly gave the CBN account to the FRC for review and
part of the issues allegedly detected is the refusal of its auditors,
Ernst and Young, to sign the account but rather, saying that it complied
with the CBN Act.
There is also, according to Presidency sources,
alleged discrepancies in the 2012 account of the Nigerian Security
Printing and Minting Company, a subsidiary of the apex bank.
“In the
account of Mint, N29 billion was recorded as the turnover as against N60
billion in the book of the apex bank. Other issues include the
donations to some higher institutions but which findings allegedly show
was inflated. Bayero University Kano was said to have collected only N1
billion as against N4 billion allegedly reported by the apex bank. There
are other illegal donations to churches, mosques and sundry sources,
which the CBN Act never provides for.”
There were concerns then that
the complicated accounts of the apex bank will pose challenges to
Sanusi's successor especially being that the accounts are not balanced
and were not signed. Moreso, the state of health of the apex bank's
annual statement became suspicious when the governor refused to submit
it to the Financial Reporting Council (FRC) the body with the mandate to
ascertain the compliance of companies with accounting standards, and
the International Financial Reporting Standards, IFRS. Rather than
submitting it to the body, the governor requested for seven years' grace
for the CBN to comply with FRC stipulations. The former governor later
went to court concerning what he called harassments by the FRC.
All
these were responsible for the manner in which both the presidency, the
office of the Attorney General of the Federation, and the FRCN handled
the uploading of that controversial report. A legal expert who spoke
with National Daily said that with the case in court, the management of
the CBN erred in uploading the report because it has the potential of
rubbishing the integrity of the government internationally. Moreover,
Sanusi could use it against the government in court.
Culled from the National Daily Newspapers
