By Blaise Udunze and Chinenye Anufuro
FOLLOWING the suspension of the Managing Director and Chairman of Stanbic IBTC, some shareholders of the bank, under the aegis of Progressive Shareholders Association of Nigeria (PSAN), have called on regulators of the market, including the Financial Reporting Council of Nigeria (FRC), to be cautious in their utterances so as not to further erode value in the market.
The FRC had on Monday announced the suspension of the bank’s Managing Director, Shola David-Borha, and its board Chairman, Atedo Peterside, for accounting irregularities, thereby stopping them from attesting to any financial report, a move the bank has contested.
Speaking during a briefing with journalists in Lagos yesterday, PSAN members led by its National Coordinator, Boniface Okezie, berated the manner in which the FRC had addressed the issue, saying “it takes a little thing to destroy confidence in the market and in a bank and when there is no confidence, there will be a run on that bank and ultimately the collapse of the system.
“Regulators are meant to guard institutions from collapse and not bring them down as our regulators are doing. We have been in total shock since Monday when the FRC made the announcement.”
The share price of the bank has since fallen by 16.5 per cent.between Monday when the FRC placed the notice of the suspension of the directors of the bank on its website, StanbicIBTC had dropped from N23 to N19.20 at the close of trading yesterday.
The shareholders also accused the Central Bank of Nigeria (CBN) for keeping mum on the actions of the FRC, saying “the accusations of the FRC is an indictment on the capability of CBN and the Nigeria Deposit Insurance Commission (NDIC) to adequately audit the reports of the banks.”
Source : SunOnline