Senate committee tasks FRC on FG intervention funds in banks

The Senate Committee on Trade and Investment has charged the Financial Reporting Council of Nigeria (FRC) to carry out further investigations on how aviation intervention funds to banks were utilized.
The Committee Chaired by Mrs. Fatimat Raji Rasaki gave this directive to the FRC during its oversight visit to the council’s office in Lagos.

According to her, “there is the need for further investigations into the circumstances surrounding the aviation intervention funds given to some banks”, adding that explanation given so far on the application of the funds was not satisfactory and therefore the need for the council to re- investigate the matter with a view to getting detailed accounts of what was given and received and how the funds were applied.
Mrs. Rasaki specifically mentioned the example of Bank of Industry (BOI), asking if the FRC is involved in ensuring that the bank presents proper accounts of the funds.
Unimpressed with how some of the interventions funds meant for dedicated sectors are being used, Rasaki said the FRC by its position as the body which receives financial reports of banks, should use its expertise to curb abuse of the funds.
Speaking further, she commended the FRC for the good work it has been doing despite the limited resources available to it and urged the council to do more in ensuring that a credible financial and accounting reporting that meets international best practices is entrenched in the country.
She also called for increased funding for the FRC given the crucial role it plays in ensuring that accounting and financial reporting standards are observed by both private and public entities, noting that there is the need for close collaboration between the Ministry of Finance and the FRC to ensure that the council is not starved of funds.
Responding, the Executive Secretary of the FRC, Mr. Jim Obazee thanked the committee for the visit and pledged that the council would not relent in carrying out its function of ensuring accuracy and reliability of financial reporting and corporate disclosures.
He added that the council must always ensure that both public and private sector businesses observe minimum acceptable standards of transparency and accountability in doing business in line with global best practices.
Obazee admitted that the BOI statutorily submits its accounts to FRC, which passes its observations to the supervising ministry for action.
He disclosed that the account of Central Bank of Nigeria is submitted to FRC, stating that reports on the apex bank accounts are passed to the Presidency for action.
Obazee identified some of the challenges of the FRC to include lack of office accommodation in Lagos and Abuja, lack of takeoff grants since the establishment of the council and inadequate manpower among others.