THE Central Bank of Nigeria may be asked to withdraw its audited annual financial reports which were released last month, according to findings by of this newspaper.
This came after a team investigating the apex bank discovered discrepancies and irregularities in the financial accounts.
In August, the CBN released its financial accounts for the years 2016 to 2022 amid an ongoing probe of the financial services sector regulator by a Special Investigator appointed by President Bola Tinubu.
Tinubu had on July 28 appointed a former Chief Executive Officer of the Financial Reporting Council of Nigeria, Jim Obazee, as Special Investigator to probe the activities of the apex bank under its suspended governor, Godwin Emefiele.
Aside from the CBN, the Special Investigator is also investigating the Nigerian National Petroleum Corporation Limited, FRC and other Government Business Entities.
The President, in the letter which he personally signed, said the move was in continuation of the government’s anti-corruption fight.
The letter, dated July 28, 2023, read, “In accordance with the fundamental objectives set forth in Section 15(5) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), this administration is, today, continuing the fight against corruption by appointing you as a Special Investigator, to investigate the CBN and Related Entities. This appointment shall be with immediate effect and you are to report directly to my office.
“The full terms of your engagement as Special Investigator shall be communicated to you in due course but require that you immediately take steps to ensure the strengthening and probity of key Government Business Entities, further block leakages in CBN and related GBEs and provide a comprehensive report on public wealth currently in the hands of corrupt individuals and establishments (whether private or public).
“You are to investigate the CBN and related entities using a suitably experienced, competent and capable team and work with relevant security and anti-corruption agencies to deliver on this assignment. I shall expect a weekly briefing on the progress being made.”
The President also attached a copy of his directive suspending Godwin Emefiele as Governor of the CBN on June 9, 2023.
According to findings by this newspaper, the CBN Special Investigator is working with a team of accountants, auditors, and forensic accountants to carry out the investigation.
Meanwhile, it was gathered on Monday that the CBN might be asked to withdraw its seven-year audited financial account reports (spanning 2016 to 2022) over allegations of containing inaccurate and false data.
Multiple sources close to the investigation said a presidential approval would soon be obtained to enable the relevant agency (FRC) to order the CBN to withdraw the controversial financial accounts.
Top sources close to the Special Investigator and his team said while the CBN financial accounts were not prepared using the International Financial Reporting Standards 9, which demands full disclosure of all financial transactions, the apex bank allegedly used guidelines purportedly obtained from the FRC in a controversial manner to prepare the financial accounts.
It was further learnt that the CBN allegedly paid N401.75m to IFRS Academy for the guidelines used in preparing the accounts.
“As a government institution, if you are getting any revenue, you are meant to pay it into Treasury Single Account from which certain percentage will be deducted for the government. According to documents, the N401m paid by the CBN for the accounting guidelines between 2016 and 2022 was paid into IFRS Academy account. The academy is a limited guarantee company set up by the FRC to train people in IFRS accounting,” a top official close to the investigation, who spoke on condition of anonymity, alleged.
“The issue is that the guidelines used in preparing the CBN accounts between 2016 and 2022 were not supposed to be paid for. Also, any accounting guidelines issued by the FRC are meant to be approved by its board and published on its website. These things were not done. The reason IFRS 9 was being avoided is to understate figures,” the official added.
Other officials close to the investigation, who spoke with The PUNCH, also claimed it was wrong to give the FRC accounting guidelines to external organisations.
As a result, it was learnt the Special Investigator team had included its recommendations that presidential approval be given to the FRC to order the CBN to withdraw the released annual financial accounts between 2016 and 2022.
“The team has also invited the auditors that prepared the accounts for questioning. Some of the data contained in the CBN financial accounts cannot be relied upon as far as the team carrying out the investigation is concerned. Once the President approves, the CBN will be asked to withdraw the accounts in order to prepare new ones using the proper accounting methodology and standards,” another official close to the team said.
Meanwhile, findings have shown that Department of State Services may invite the Executive Secretary/Chief Executive Officer of FRC, Shuaibu Ahmed, and some top officials of the agency for questioning.
Also, the Special Investigator and his team are expected to question officials of the FRC for allegations bothering on the controversial accounting guidelines used by the CBN, among other issues.
Already, the DSS has quizzed some deputy governors of the CBN as the investigation continues.
Also, It was learnt that more cases involving Emefiele might soon be revealed in court sessions.
Tinubu had on July 28 directed the CBN Special Investigator to work with security and anti-corruption agencies to provide a comprehensive report on public wealth currently in the hands of corrupt individuals and establishments, whether private or public.
Economists and civil society organisations are divided over the probe of the CBN, NNPCL and other Government Business Entities by the president.
While some supported the move, others expressed concerns saying it might send the wrong signal to the international and foreign investment community.