Stanbic Chairman, CEO Suspended Over Misleading Financial Statements

The chairman of Stanbic IBTC bank, Peterside Atedo, and other senior officials has been suspended by Financial Reporting Council of Nigeria of the bank over accounting irregularities in the bank’s 2013 and 2014 financial statements.

Mr. Atedo was suspended alongside the bank’s managing director, Sola David-Borha, and KPMG’s Arthur Oginga and Daru Owei.

They were suspended for attesting to “misleading” financial statements, and would remain suspended till investigations are concluded, the council said in a statement Monday.

The council pointed out several inconsistencies in the bank’s reporting, including IBTC’s failure or refusal to disclose what exactly millions of naira grouped under “donations” and “others” were used for.

In one instance, the total fee IBTC bank paid to KPMG Professional Services for non-audit services was found to be inconsistent with what was disclosed in the financial statements for the years under review, the council said.

“The Council observed that Stanbic IBTC regularly flouts CBN regulations. In 2014 for instance, a total penalty of N28, 000,000 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 said.

The council instructed the directors of Stanbic IBTC to withdraw the Financial Statements of and restate them in accordance with the provisions of the law.