Stanbic IBTC shareholders call for reconstitution of FRC board

Shareholders of Stanbic IBTC Holdings have called on the Federal Government to reconstitute the board of the Financial Reporting Council (FRC), saying the board should be made of experienced, honest and diligent Nigerians who are exposed to how corporations operate across the world.

This follows some allegations on Monday against the bank by FRC over audited accounts for 2013 and 2014, as well as the suspension of the directors of the bank by the Council.

They also appealed to the Federal Government to look into the activities of the Council in order to forestall more damage to the operations of businesses and the larger economy.

According to Boniface Okezie, president, Progressive Shareholders Association of Nigeria, who addressed a press conference on the recent altercation between FRC and Stanbic IBTC Bank, shareholders are shocked by the actions of the FRC, which have not followed procedure as outlined in the regulations.

In a case where a corporate body disagrees with FRC’s interpretation of its accounts, said Okezie, FRC ought to go to court according to Regulation 27 of the Directorate of Inspection and Monitoring Guidelines Regulations. “Instead, the FRC took to the media to make several questionable allegations against a corporate body,” he said.

Expressing shock and disappointment at the approach deployed by FRC, Okezie stated, “we would have expected FRC to recognise that circumspection ought to be its guiding standard.”

Affirming confidence in the leadership of the board and management of Stanbic IBTC, Okezie said “we have always commended the transparency and commitment by the Board to conduct business only in line with world-class corporate governance principles. It is on account of this that Stanbic IBTC Holdings plc is the only bank in Nigeria that has an AAA Fitch rating.”

He added that shareholders support the bid to expand the operations of the bank, as this would “guarantee optimal returns on our investment.”