Securities and Exchange Commission, SEC, has suspended the proposed Stanbic IBTC Holding Company Plc’s Rights Issue earlier approved by the commission due to investigations into allegations against the bank.
SEC informed the investing public particularly the shareholders of Stanbic IBTC to beware that the proposed rights issue has been put on hold in view of letters received from the National Office for Technology Acquisition and Promotion (NOTAP), the Central Bank of Nigeria (CBN) as well as the Financial Reporting Council (FRC).
The commission also said it has been notified of an ongoing investigation by the FRC on the financial statements of Stanbic IBTC Holding Plc.
SEC stated categorically that the rights issue exercise has been suspended until proper resolution of issues raised.
The Executive Secretary/Chief Executive Officer, Financial Reporting Council of Nigeria, Jim Obazee, disclosed that the council has commenced investigations into allegations of financial impropriety made in the financial statements of Stanbic IBTC.
Obazee, who made this known after a meeting with the Director-General, National Office for Technology Acquisition and Promotion, Dan-Azumi Ibrahim, in Abuja, said the move was in response to a petition written by shareholders of the bank.
He noted that the attention of regulatory authorities had been drawn to some unapproved transactions allegedly conducted by the bank with its foreign technical partners.
In the petition, members of Trusted Shareholders Association had alleged that tens of billions of naira were yet to be returned into the profit and loss account of the bank.
Based on preliminary discussions with both parties, Obazee said that the council had come to realise that the petitioners had a valid case.
He said: “The petition from the stakeholders of Stanbic IBTC is on issues relating to Stanbic IBTC and the way they have been accruing some monies in their account.
“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.”
“Stanbic IBTC Holdings PLC (“Stanbic IBTC”) 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.
According to the bank, ‘’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.”