{"id":23593,"date":"2014-02-28T15:03:46","date_gmt":"2014-02-28T14:03:46","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=23593"},"modified":"2014-02-28T15:03:46","modified_gmt":"2014-02-28T14:03:46","slug":"sanusi-and-the-frcn-report-beyond-impunity","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/sanusi-and-the-frcn-report-beyond-impunity\/","title":{"rendered":"Sanusi and the FRCN Report: Beyond Impunity"},"content":{"rendered":"<p><em><strong>By Johnson Momodu<\/strong><\/em><\/p>\n<p>When I read the following headline: \u201cSanusi May Go To Jail\u201d, in the<br \/>\nNigeria Pilot of February 24, 2013, I was curious and wanted to see the<br \/>\ncontents of the report submitted in June 2013, by the Financial Reporting<br \/>\nCouncil of Nigeria (FRCN), which investigated the operations of the<br \/>\nCentral Bank of Nigeria (CBN). When, eventually, I had access to the<br \/>\nreport, I was amazed by the sheer number of infractions, commissions and<br \/>\nomissions, all packed into one report.<\/p>\n<p>The 13-page FRCN report, is a compilation of assorted financial<br \/>\ninfractions, from the mildest to the most serious \u2013 financial<br \/>\nindiscretion, misapplication, mismanagement and misappropriation of funds,<br \/>\nembezzlement, fraud and plain financial theft \u2013 committed with impunity<br \/>\nand utter recklessness by the leadership of the CBN. While some of these<br \/>\ninfractions may be treated as excusable human lapses, they are enough,<br \/>\nunder normal circumstances, to cause a public officer his job or in some<br \/>\ncases a reduction in rank.<\/p>\n<p>The Financial Reporting Council of Nigeria (formerly the Nigerian<br \/>\nAccounting Standards Board) was established as a private body in 1982. It<br \/>\nbecame a government agency in 1992 under the Federal Ministry of Trade and<br \/>\nCommerce. In July 2011, a Bill for the FRCN Act was passed through the<br \/>\nSenate and signed into law by President Goodluck Jonathan.<\/p>\n<p>The primary functions of the FRCN are to develop, publish and update<br \/>\nstatements of Accounting Standards and to promote and enforce compliance<br \/>\nwith the standards. Essentially, therefore, the FRCN is generally accepted<br \/>\nas a unified independent regulatory body for accounting, auditing,<br \/>\nactuarial valuation and corporate governance. Its members, which include<br \/>\nthe CBN, are mainly government and private institutions.<\/p>\n<p>The reason for going into the origin, status and functions of the FRCN is<br \/>\nto show, not only that it is professionally endorsed by all accounting<br \/>\ninstitutions but also that it has the backing of the law. The FRCN report<br \/>\nof June 7th 2013 was a follow-up of the 2012 Audited Account of the CBN,<br \/>\nin which some 22 infractions were discovered. The issue of recklessness<br \/>\nwas raised in connection with certain huge financial expenses incurred<br \/>\nunder the special access item in the CBN Account. These were the subjects<br \/>\nof the query issued by President Jonathan to the CBN Governor on 6th May,<br \/>\nto which the Governor responded on 21st May (2012). Unfortunately, the<br \/>\nFRCN was not satisfied with the explanation given by the Governor, which<br \/>\nit described as \u201ca clear display of incompetence, nonchalance, fraud,<br \/>\nwastefulness, abuse of due process and deliberate efforts to misrepresent<br \/>\nfacts on the part of the leadership of the CBN.\u201d<\/p>\n<p>The FRCN report found Sanusi to be guilty of wastefulness and financial<br \/>\nrecklessness in various items of its internal administration of government<br \/>\nfunds. This was compounded by the incompetence of the Governor in a number<br \/>\nof areas. The report specifically mentioned CBN\u2019s poor handling of the<br \/>\nAsset Management Corporation of Nigeria (AMCON), which led to a loss of<br \/>\nover N2.37 trillion; unauthorized overpayment to External Auditors and the<br \/>\nwrite-off of \u201cloans to the tune of N3.856 billion in 2012.\u201d<\/p>\n<p>The Report also listed areas in which the CBN Governor abused due process.<br \/>\nThey include: the failure to set up a Board of Trustees (BoT) as required<br \/>\nby the provisions of the Memorandum of Understanding (MoU) signed by the<br \/>\nCBN and other Deposit Money Banks on Banking Resolution Sinking Fund;<br \/>\nallowing some parastatals to have debit or overdrawn accounts with the<br \/>\nCBN; non-implementation of the personal Income Tax (Amendment Act 2011;<br \/>\nnon-compliance with the provisions of Section 6(1) of the Industrial<br \/>\nTraining Fund (ITF) Act Cap 19, LFN 2004), etc.<\/p>\n<p>By far, the more damaging parts of the FRCN report are those dealing with<br \/>\nfraudulent activities. Here, there are startling revelations of falsified<br \/>\nfigures involving such cases as the amount expended on the printing of<br \/>\nbanknotes; fraudulent claims for air charter flights, including payment of<br \/>\nEmirate Airline, for local flights in Nigeria, which the Airline does not<br \/>\noperate, acquisition and disposal of nonexistent fixed assets, etc.<\/p>\n<p>It is almost certain that the FRCN report contains the highest number of<br \/>\nfinancial infractions ever committed by a single government official in<br \/>\nthe history of Nigeria. That is why its conclusion was unequivocal: \u201cYour<br \/>\nExcellency may wish to exercise the Powers conferred on Mr. President by<br \/>\nSection II(2) of the Central Bank of Nigeria Act 2007 or invoke Section<br \/>\nII(2) of the said Act and cause the Governor and the Deputy Governor to<br \/>\ncease from holding office in the CBN.\u201d The report also sought permission<br \/>\nfor the FRCN to conduct a fuller investigation the outcome of which<br \/>\n\u201cshould lead to prosecution of those found to be involved in the<br \/>\nmisappropriation and\/or misapplication or otherwise of the funds of the<br \/>\nCBN.\u201d<\/p>\n<p>For the war on corruption to be meaningful in Nigeria, the recommendations<br \/>\nof the FRCN report must be enforced to the letter. The rule of law must<br \/>\napply and there should be no sacred cows. Unless those found guilty in<br \/>\nthe CBN case are prosecuted, the Government has no justification holding<br \/>\nother Nigerians to account when they violate the laws of the land.<\/p>\n<p>Momodu sent this piece via momodujohnson@gmail.com<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>By Johnson Momodu When I read the following headline: \u201cSanusi May Go To Jail\u201d, in the Nigeria Pilot of February 24, 2013, I was curious and wanted to see the&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":23305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-23593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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