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 (FRCN), to be cautious in their utterances so as not to further erode value in the market.
The FRCN had on Monday announced the suspension of the FRC licence 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, PSAN members led by its national coordinator, Boniface Okezie, berated the manner the FRCN 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 FRCN made the announcement.” The share price of the bank has since fallen by 16.5 per cent.
Between Monday when the FRCN placed the notice of the suspension of the directors of the bank on its website, the share price of Stanbic IBTC dropped from N23 which it opened trading activities to N19.20 at the close of trading.
The shareholders also accused the Central Bank of Nigeria of keeping mum on the actions of the FRCN, saying, “the accusation of the FRCN is an indictment on the capability of the CBN and the Nigeria Deposit Insurance Commission (NDIC) to adequately audit the reports of the banks.”
Okezie who expressed disappointment “in the FRC and its interpretation and understanding of its role in NIgera and the way and manner in which it is executing its mandate,” said, “we recognise that the FRC is currently operating without the necessary oversight structures that ought to exert modulating influences on its excesses.”
He then called on the President Muhammadu Buhari-led government to immediately constitute a board for the FRCN that “will exert more control and limit the excesses of the FRC which is currently run as a one man show by its executive secretary.”
Source : Leadership