The position of the CBN was madde known in a letter written to the FRC dated November 2 and signed by the governor of the bank, Mr. Godwin Emefiele.
The FRC had suspended the Chairman of Stanbic IBTC Holdings, Mr. Atedo Peterside, and three directors of the company from signing any financial statement over allegations of improper disclosures in the bank’s financial statement for the 2013 and 2014 financial periods.
Also suspended were the Managing Director/Chief Executive Officer, Stanbic IBTC, Mrs. Sola David-Borha, Mr. Arthur Oginga and Dr. Daru Owei.
Furthermore, the council ordered the Stanbic IBTC directors to withdraw the company’s financial statements for the 2013 and 2014 financial years, insisting the statements were not prepared in line with the International Financial Reporting Council, hence were misleading.
The sanctions by the council had resulted in 18% fall in the value of the shares of the bank on the floor of the Nigerian Stock Exchange.
However, CBN governor, Emefiele, in the letter, stated that while the bank understood that both the Final Notice and Regulatory Decision of the FRC were based on the FRC Act No. 6 of 2011 and Regulation 21 of the FRC guidelines, its review revealed that the bank had not committed any serious infraction in its financial statements.
It stated that in the area of financial issues raised by the FRC, contrary to allegations that Stanbic IBTC did not obtain approval from NOTAP for the payment of the software licence, a review revealed that the bank actually obtained the necessary approval from NOTAP.
The approval, according to the governor, was granted to pay affiliate software licence from Standard Bank South Africa for a period of three years covering June 1, 2012 to May 30, 2015.
With regards to the allegation of non-disclosure of intangible assets, the CBN said the bank adequately recognised the software as an intangible asset in its 2011 financials and sufficiently disclosed the disposal of the software in the 2012 financials.
