Court Orders Bank To Appoint Accountant In Case Of AMCON Vs. Jimoh Ibrahim

AMCON, Asset Management, Jimoh Ibrahim, Union BankA Federal High Court sitting in Lagos has ordered Union Bank of Nigeria to nominate a chartered accountant within seven days for the purpose of carrying out a forensic audit of statement of accounts on the alleged 50 billion Naira loan allegedly granted to businessman, Mr Jimoh Ibrahim by the bank.

The accountant will work with two other accounting firms nominated by the Asset Management Corporation of Nigeria (AMCON) and Mr Jimoh Ibrahim.

At the resumed hearing of the suit on Monday, lawyer to AMCON, Yusuf Ali (SAN), informed the court that AMCON has already nominated KPMG.

Counsel to the defendants, Chief Niyi Akintola (SAN) also stated that in compliance with the directive of the court, the defendants appointed the accounting firm of Adewale Folowosele & Associates.

The court has also ordered that the joint forensic audit is to be conducted by the three chartered accountant firms within a month at the Union Bank headquarters.

The matter has been adjourned till September 28 for a report of progress or settlement.

Justice Abdulazeez Anka had on July 11 discharged an interim order granted to AMCON to take over some assets belonging to Mr Jimoh Ibrahim.

This was after the business man had submitted that the exparte order was obtained via suppression and misrepresentation of material facts by the plaintiff (AMCON) and the order was obtained in bad faith against persons who are not parties to the suit.

The applicants had in a 24-paragraph affidavit in support of their application, deposed to by one Gbenga Onilude, a litigation officer, stated that none of the properties attached in the exparte order belong to any of the defendants; NICON Investment Limited, Global Fleet Oil and Gas Limited and Barrister Jimoh Ibrahim.

KPMG Presents Book On Quality Healthcare

KPMG, HealthGlobal professional services company, KPMG has presented a book to the Ministry of Health that would help the country plan and establish a universal health coverage system.

The book, presented by KPMG partner and Head of Advisory Services, Kunle Elebute, is aimed at supporting Nigeria in structuring an effective universal health coverage.

It focuses on how to provide an affordable, accessible and quality health care to majority of the citizens, especially the rural poor.

The book, ‘In Search Of The Perfect Health System’, written by the company’s Global Head of Health Care, Mark Britnell, explores seven challenges of health care around the world and transformative forces facing healthcare in the future such as retail revolution and wearable monitors.

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Minister of Health, Professor Isaac Adewole,

The Minister of Health, Professor Isaac Adewole, said that the structuring of an effective universal health coverage is part of this government’s agenda of reaching 100 million Nigerians by 2018.

Professor Adewole said that the 100 copies of the book will be distributed to all stakeholders and key players in the health sector to prepare them for the task that must be accomplished in the sector.

Capital Investment Plan Will Trigger Economic Turnaround, Says Adeosun

minister of financeNigeria’s Minister of Finance, Mrs Kemi Adeosun, has said that the planned 1.8 Trillion Naira capital investment in 2016 by the Federal Government will drive economic growth.

Giving a breakdown of the current administration’s plans to reposition the economy at a Forum and Survey Launch in Lagos on Friday, Mrs Adeosun said a spending stimulus was needed to reflate the economy and avoid recession.

Diversified Economic Growth

The Minister, in her keynote address, told the participating Chief Financial Officers at the forum organised by the KPMG, that Nigeria’s GDP in 2015 was the lowest in the last 15 years and pointed out that even whilst oil prices were high, GDP had been falling.

According to a statement issued by the Special Adviser to the Finance Minister on Media Matters, Mr Festus Akanbi, the Minister recalled that a similar stimulus had actually been provided in the global downturn in 2008.

She pointed out that the stimulus now needed, would be strategically targeted at investments that would support a diversified economic growth.

The Finance Minister said the proposed 2016 budget would finance investments in key infrastructure particularly in transport, power, health, housing and education.

“These investments would create jobs with the various contractors that would execute the projects,” Mrs Adeosun further told the gathering.

Public Investment

She explained that public investments would attract further investments from the private sector and that investments in power and transport would increase the competitive position of Nigerian businesses.

The Minister cited the case of Ethiopia, which is now seen as a model for African economy which has diversified from a single product, coffee to a multi-product with exports of flowers providing US3.5bn Dollars of earnings as well as leather goods and other products.

Mrs Adeosun said that to attain that level of growth, the Ethiopian Government had invested up to 60 per cent of its budget in capital, pointing out that this threshold contrasted to the Nigerian situation, where In 2015, Nigeria’s capital expenditure was just 10 per cent of the total.

“No economy has ever grown by underinvesting in infrastructure,” the Minister stressed.

Sanitising The Payroll

Explaining the strategies that the government had adopted, the Minister said: “The ongoing “fiscal housekeeping”, which included sanitising the payroll, which to date, has unveiled over 23,000 possible ghost workers and the creation of the Efficiency Unit, are key strategies in managing recurrent expenditure.

“The focus on improving non-oil revenue collections is also an important strategic objective”.

According to the Minister, this is essential in ensuring that the planned borrowings were channelled to capital projects rather than being spent on recurrent items.

On the subject of the planned borrowing, the Minister explained that Government was seeking the lowest cost funds and was therefore, consulting with the multilateral agencies, which offered concessional rates of interest as low as 1.5 per cent before looking at the commercial Eurobond Market.

She said that the financing strategy was to restructure much of the existing debts, which had short maturity and aligned it with the investment plans of the government in line with its Medium Term Expenditure Framework.

The Minister assured Nigerians that the government was ensuring that projects to be undertaken, would create direct and indirect revenues, which would be used to repay the obligations.

Mrs Adeosun said that for the medium term, the outlook for the economy was strong.

“If the planned investments in capital are undertaken, the GDP growth projections show that Nigeria would become a leading global economy.

The government will work to ensure that consumption from our huge population would drive internal growth across a number of key sectors,” she stated.

The Minister, however, assured the audience that if the disciplined implementation of the plans could be attained, Nigeria would finally be able to diversify and end the situation where the entire nation focus on oil price.

Stanbic IBTC vs. FRCN: Court Fails To Sit 

StanbicThe Federal High Court sitting in Lagos on Tuesday failed to sit to hear a suit instituted by Stanbic IBTC against the Financial Reporting Council of Nigeria, FRCN, and National Office for Technology Acquisition and Promotion, NOTAP.

Presiding Justice Ibrahim Buba was absent and the proceedings had to be adjourned to Wednesday, November 4.

In the suit, Stanbic IBTC Bank is asking the court to determine, among others, whether FRCN has the power to impose a fine of 1 billion Naira on it.

FRCN had last week sanctioned Stanbic IBTC over its audited accounts for 2013 and 2014 and suspended the financial reporting numbers of the bank’s Chairman, Mr. Atedo Peterside, and its Chief Executive, Mrs Sola David-Borha, and also barred them from vouching for the integrity of any financial statements in Nigeria.

The body also suspended two other directors – Mr. Arthur Oginga and Dr. Daru Owei – for attesting to what it termed the “misleading”  2013 and 2014 financial accounts of the bank, as well as Ayodele Othihiwa of KPMG professional services for his firm’s alleged complicity in the infractions highlighted in the financial reports for the two-year period.

It based its sanctions on issues raised by the bank’s minority shareholders led by the Mahtani brothers who own the Churchgate conglomerate, to some other regulatory agencies such as NOTAP, Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), among others.

KPMG indicts NNPC over $65 million demurrage

An official of KPMG, an audit firm, has revealed that the inefficiency of the Nigerian National Petroleum Company (NNPC) in the payment of demurrage on imported fuel at the ports has cost the country $65 million.

The official of the audit firm, Mr Dimeji Salaudin disclosed this when he appeared before the Senate Committee investigating the management of fuel subsidy in the country.

Mr Salaudin also told the committee that the Petroleum Product Pricing Regulatory Agency (PPPRA) overpaid oil marketers a whopping N25 billion in subsidy.

The Senate committee had summoned KPMG on Thursday over its failure to tender vital documents relating to the fuel subsidy scheme.

Not wanting to incur the wrath of lawmakers, two officials of audit firm KPMG appeared before the senate committee investigating the management of the fuel subsidy scheme.

The Minister of Finance had commissioned the international auditing firm in 2010 to review the subsidy regime from January 2007 to June 2010.

Giving details of the report, the KPMG representative said they discovered from their investigations that documents from the PPPRA to pay oil marketers were doctored.

The KPMG official also faulted the governance framework of PPPRA describing it as weak.

The committee directed the Minister of Finance to appear before it on Tuesday 5th June and also subpoenaed the CEOs of Oando PLC and Folawiyo Petroleum Company Limited to appear before it also on Tuesday.

Fraud cost Africa $10.9 billion in 2011: KPMG

World Map Index of perception of corruption 2010

Bribery, theft and other kinds of fraud cost African governments and companies at least $10.9 billion last year, auditing firm KPMG estimated in a study on Wednesday.

South Africa and Nigeria had the highest number of reported cases of fraud, but the study noted that fewer cases were reported in the second half of the year than in the first in both countries,.

Zimbabwe has the highest value of fraud perpetrated in the second half of 2011, amounting to over US$1.2 billion.

KPMG said it arrived at the figure after scouring English-language news reports and databases of fraud cases from 2011.

The actual cost of fraud is likely much higher, given that the study was limited to information in the public domain, said Petrus Marais, a forensic investigator with KPMG.

However, he said many governments appear to be making headway in fighting fraud and other types of corruption.

“There is a strong sense that the tide is turning. More and more countries are making combating corruption an issue of government” he said.

The inaugural “Africa Fraud Barometer” found a total of 875 cases of fraud in Africa last year.

Accounting for 29% of perpetrators, company employees committed the most fraud during the second half of 2011, according to the report. That is an increase of two percent from the first six months.

Management were responsible for $4.5 billion worth of fraud, or 40 percent of the total for the year.

Governments and the public sector were the most frequently impacted by fraud, accounting for 44 percent of all cases in the first half of 2011 and 39 percent in the second half.

“Fraud occurs most where money enters and exits a company or institution. At the interface of financial transactions, perpetrators tend to be most successful in defrauding funds,” says Marais.

General fraud is the highest reported fraud type at 29%, while misappropriation and theft come second.

The role of a free press in digging up corruption was critical to fighting fraud, Marais said, adding that “over time, we expect to get a clearer picture about the different types of fraud committed, which will allow us to propose to our clients various types of measures against fraud.”

KPMG developed the Africa Fraud Barometer to form a bigger picture of fraud prevalence in Africa. The initiative is a first effort to measure fraud on the African continent and expose the risk of fraud for companies in their day-to-day operations.

KPMG compiled data for the Africa Fraud Barometer by accessing and analysing all available news articles, as well as reviewing fraud cases from designated databases. This methodology has been successfully used in the United Kingdom. The data is captured, processed and will be disseminated in a press release every six months.