Stanbic IBTC to work with regulators on investigation

Stanbic IBTC Holdings Plc has said it will continue to engage relevant regulatory bodies to ensure that investigation into its operations are completed soon.

The bank said this in an emailed reaction to the suspension of its rights issue on Tuesday by the Securities and Exchange Commission as a result of an investigation into its operations by the Financial Reporting Council of Nigeria.

The statement read, “Stanbic IBTC Holdings Plc notes the suspension by the Nigerian Securities and Exchange Commission of its proposed rights issue, pending the resolution of enquiries from certain relevant regulatory bodies.

“The management of Stanbic IBTC will continue to engage with the relevant regulatory bodies to ensure that these enquiries are addressed in a timeous manner. Stanbic IBTC Bank Plc, the banking subsidiary of Stanbic IBTC Holdings Plc, remains well capitalised and has sufficient liquidity.”

The PUNCH had reported on Monday that the FRCN had opened an investigation into Stanbic IBTC in response to a petition written by shareholders of the bank, drawing the attention of regulatory authorities to some unapproved transactions allegedly conducted by the bank with its foreign technical partners.

The Executive Secretary/Chief Executive Officer, FRCN, Mr. Jim Obazee, had disclosed this after a meeting with the Director-General, NOTAP, Mr. Dan-Azumi Ibrahim, in Abuja.

Obazee had explained that the petition from the stakeholders of Stanbic IBTC was related to the way the group had been accruing some monies in its account.

He added, “And if you accrue money in your account, well there is nothing wrong with accrued monies, but it must be disclosed properly.

“Now, they said the accruals were requiring the NOTAP approvals before they can make those payments. Now the person petitioning is saying that there is no need making those accruals because Stanbic IBTC has not been able to secure NOTAP approval.

“The petition kept coming and then we invited Stanbic IBC to hear their side in the matter. And listening to their side of the story, we believe that the petitioners have a good case.”

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Source : Punch

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