This is a sponsored post. Read below...
The
theory is emerging that the Financial Reporting Council’s media attack
on Stanbic IBTC is merely the actualization of a script handed down to
Jim Obazee, Executive Secretary and Chief Executive Officer (CEO) by his
benefactors, the Mahtani brothers.
People
familiar with Obazee’s reputation however, betrayed little surprise
noting that he had always been known to swing like a pendulum in the
direction of money and power.
It would be recalled that Obazee earned his
notoriety when he took on the former Governor of the Central Bank of Nigeria
(CBN) and present Emir of Kano, SanusiLamidoSanusi, for blowing the whistle
when about $20 billion allegedly took flight from the nation’s treasury during
the immediate past administration of former President Goodluck Jonathan.
Obazee instigated a phantom audit and
investigation of Sanusi’s tenure and subsequently produced a shady indictment
of Sanusi thus providing an excuse for Jonathan to suspend the former CBN
governor and invariably terminate his appointment as leader of the apex bank.
He is currently using the same tactics against Stanbic IBTC to help the Indians
achieve their aim of forcefully grabbing more stake in the bank. Obazee
allegedly suspended the affected parties over fabricated allegations of
misconduct.
Nobody knows if truly, Bhagwani and Ratan
Mahtani commands Jim Obazee, Executive Secretary and Chief Executive Officer
(CEO) of the Financial Reporting Council (FRC) by a pay-leash, but everybody
thinks Obazee has sold out to the Indian brothers and owners of Churchgate
Nigeria Limited. And the reason is hardly farfetched: the recent suspension
ofthe registration of four directors of Stanbic IBTC and that of its audit
engagement partner, KPMG, by the FRC, was reportedly masterminded by the
Mahtanis through their alleged pawn and gofer in the FRC, Obazee.
The FRC issued the suspension accusing the affected parties of what it called,
‘financial misstatements.’ The council also called on the Central Bank Nigeria
(CBN) and the Economic and Financial Crime Commission (EFCC) to investigate
Stanbic IBTC and KPMG. The council in a report released on Monday, also noted,
that KPMG Professional Services, remains suspended until its innocence in the
matter is ascertained.
But reacting to the report, Stanbic IBTC
Holdings described the FRC allegations as “inaccurate and unfortunate,” noting,
that “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.
“Stanbic IBTC is a very responsible organization
and fully complies with all extant laws and regulations in Nigeria and
international best practices applicable to the conduct of its business,”
claimed the bank. Although the FRC named four directors suspended to include
AtedoPeterside, Sola David-Borha, Arthur Oginga and Dare Owei, but the bank
said, “Contrary to the media reports, the Directors of Stanbic IBTC have NOT
been ousted. The directors, who are from Nigeria and elsewhere, are reputable
individuals who uphold the best corporate governance practices and whose
credibility, integrity and proven track record are impeccable”.
According to FRC, “the schedules supplied to the council by Stanbic IBTC revealed
that the total fee paid to KPMG Professional Services for non-audit services
was inconsistent with what was disclosed in the financial statements for the
years under review.”
The Mahtani brothers who naturalized to Nigerian
citizenship, have been fingered in series of corruption cases recently; they
have been accused of fleecing Nigeria off crucial taxes even as they
strategically hound competitors off the business arena. Recent developments
indicate that they are at their antics again, trying to muscle innocent
Nigerians to take over their businesses or force them to part with huge stakes.
Their current move against Stanbic IBTC and its executives have raised several
eyebrows in the financial business sector as stakeholders are wary that they
just might have their way given Stanbic IBTC’s seeming inexperience and
unsavoury skills at engaging the brothers and their stooge, Obazee, in the
filth of mudslinging, which is unfortunately the forte of Obazee and the
Mahtanis.
Why the Mahtanis are gunning for Stanbic IBTC’s
jugular.
The Mahtanis used to own 100 per cent of the former Regent Bank Plc which in
the various mergers and acquisitions that took place in the Nigerian finance
industry teamed up with IBTC and Chartered Bank in 2005 to form IBTC Chartered
Bank Plc and they held significant shares of the hybrid institution resulting
from that merger.
However, the Mahtanis’ stake suffered significant decline when IBTC Chartered
Bank Plc in further consolidation, aligned with Standard Bank in 2007. At
the end of this second merger, the equity of the Indians was notably diluted
and it seemed like they were left holding the short end of the stick, with just
a paltry amount of shares in Stanbic IBTC Plc.
Ever since, the Indians with Nigerian passports have resorted to desperate
tactics to arm-twist the financial institution to their advantage.