Stanbic IBTC gives point by point rebuttal in letter to CBN 

Stanbic IBTC has written a letter to the Central Bank of Nigeria (CBN), giving point by point rebuttals of accusations that it issued irregular capital importation certificates to MTN Nigeria.
The letter which was dated 30, August 2018, signed by the CEO Demola Shogunle and addressed to the CBN Governor Godwin Emefiele, said Stanbic IBTC had considered the allegations by the CBN and that they are based on factually incorrect premises.
“At no time did the Bank use irregular Certificates of Capital Importation (CCIs) to make remittances on behalf of MTN Nigeria Communications Nigeria Limited (MTNN) as alleged,” Shogunle said in the letter.
“On the contrary, all remittances were done with knowledge and approval of the Central Bank of Nigeria, an in accordance with the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and other extant Regulations,” Shogunle said.
Shogunle then went into a point by point rebuttal of the allegations made by the central bank.
On CBN’s claim that “the shareholders of MTN Nigeria Communications Limited invested the sum of USD402, 590, 261.03 in the company from 2001 to 2006” Stanbic-IBTC responded “these CCIs were transferred to our Bank to facilitate the reparation of the proceeds of MTNN’s Private Placement, which took place in February 2008.”
Similarly, the CBN alleged that Stanbic-IBTC Plc “repatriated the sum of USD 929, 051, 331.83 as proceeds of divestment from the CCIs valued at USD42, 704, 408, .61.”
But Stanbic-IBTC said “the factual positions of CCIs transferred by Standard Chartered Bank Limited were duly transferred to Stanbic-IBTC Plc for the repatriation of the MTN Private Placement proceeds.”
On account of the illegal conversion of shareholders loan preference shares (interest free loan) of USD399, 594, 146.00 the sum of USD8, 134, 312, 397.63 was illegally repatriated by your bank the CBN had alleged.
“The truth is that Stanbic-IBTC Plc was not involved in the conversion of the shareholder loans, nor did it carry out any amendments to the CCIs issued in respect of such loans to accommodate these conversions,” Stanbic-IBTC Plc stated.
The CBN had alleged that Stanbic IBTC falsely reported thirty-five CCIs valued at USD 313, 683, 925.84 inappropriately as “other purchases” in its MTR 203 returns for February 2008 instead of “capital importation.”
“On the contrary, the thirty-five (35) CCIs referred to were on the same day that the conversion of USD 313, 683, 925.84 to Naira occurred. At this relevant time (in 2008), banks were required to render DTR203 to the Central Bank of Nigeria (CBN), which was a daily return,” Stanbic-IBTC stated.
The CBN had alleged that Stanbic IBTC issued 8 CCIs of USD 58.35 million in respect of FX sourced locally as shareholder loan in contravention of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and Memorandum 20 (1.3) (III) of the Foreign Exchange Manual, which stipulate that CCIs should be issued on capital imported.
Stanbic IBTC in its reply to the specific allegation said it was not aware at the relevant time, that the affected investors in the MTN Private Placement had obtained FX loans from local banks for the purpose of their investments.
“Like all issuing Houses selling shares, our responsibility was to determine that we were dealing with bonafide citizens who were applying for shares of a monetary value that was not out of line with their known income and wealth profile. There is no mandatory requirement for issuing Houses to investigate whether an investor borrowed funds or not.”
Shogunle concluded with a plea in which he said, “it is our humble submission that the CBN re-evaluates the facts and come to conclusion that there was no basis for the huge fines imposed on Stanbic IBTC Bank Plc, as well as rescind the directive to refund sums of money duly repatriated to foreign direct investors over a period exceeding 13 years.”

STEPHEN ONYEKWELU