STANDARD Bank subsidiary Stanbic IBTC has obtained injunctions barring the Financial Reporting Council (FRC) of Nigeria from taking action against it, including exacting a $5m fine, for alleged accounting breaches. It is also appealing against a court ruling that failed to overturn a council decision.
"Stanbic IBTC has exercised its constitutional right of appeal in relation to this matter," bank spokesman Nkiru Olumide-Ojo said on Wednesday.
"It also obtained injunctions that restrain the FRC from enforcing its regulatory decision or interfering in the operations of Stanbic … and its subsidiaries, pending the outcome of this appeal," Ms Olumide-Ojo said.
Stanbic is a 53.25%-held subsidiary of Standard Bank.
The injunction means that the council cannot enforce its October decision to prevent Stanbic CEO Sola David-Borha and chairman Atedo Peterside from signing off financial statements, a decision it made after uncovering irregularities.
These included the sale of software to Standard Bank for nearly R151.5m, despite the National Office for Technology Acquisition and Promotion’s refusal to authorise it.
The regulator directed Stanbic to withdraw and restate its 2013 and 2014 reports, but the Central Bank of Nigeria opposed this and wrote a letter in support of the bank.
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