Stanbic IBTC challenges judgment on FRC

Stanbic IBTC Holdings Plc has appealed the judgement of the federal high court which ruled in favour of the Financial Reporting Council of Nigeria (FRC) and National Office for Technology Acquisition and Promotion (NOTAP).

In October, the FRC requested that the Central Bank Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) investigate Stanbic IBTC and KPMG Professional Services for “financial misstatements”.

The bank in its response said the FRC had ignored the laid down process of handling the alleged misstatements, and resorted to seeking publicity.

“Our attention has been drawn to the media statements by the Financial Reporting Council of Nigeria (FRC) in which several inaccurate and unseemly allegations were made against Stanbic IBTC Holdings PLC (“Stanbic IBTC”),”  the bank had said.

“Although the matter is in court, we are constrained to respond to certain aspects of the report for the benefit of our stakeholders and the general public.

“FRC’s allegations are inaccurate and unfortunate, and the manner in which it has chosen to make them is procedurally defective. FRC has ignored this laid down process in preference for self-help and media publicity.”

Ibrahim Buba, who presided over the case filed by Stanbic IBTC, dismissed the case, ruling that the questions raised by Stanbic IBTC regarding FRC were “hypothetical and academic”.

He held that section 7 of the NOTAP act 1979 expresses important national public policy of Nigeria, to avoid the dumping of obsolete and inappropriate technology in the country and to raise revenue for the federal government.

According to Buba, an agreement that seeks to circumvent the registration requirement under the NOTAP act would not be enforced by the courts.

But in a statement issued Stanbic IBTC issued on the ruling, the bank said: “Buba does not appear to have addressed the position where an agreement is submitted for registration and NOTAP fails or refuses to register or where an agreement is for a period of years and NOTAP gives approval to make payment in relation to some (but not all) of the years”.

Stanbic IBTC added that it would await the written judgment, which would enable it to understand the decision and its implications.

However, the bank has lodged an appeal at the Lagos division of the court of appeal.

Stanbic IBTC said as a law abiding corporation, it will continue to respect the rule of law and comply with extant Nigerian law.