Institute of Chartered Accountants of Nigeria - Controversy

Controversy

A storm over banking malpractices blew up in 2009, with the Central Bank of Nigeria (CBN) leading investigations that led to bank closures and dismissal of directors, some of whom were arrested by the Economic and Financial Crimes Commission. Olutoyin Adepate, the ICAN registrar, said "the current crises should be fully investigated and persons found guilty sanctioned according to the laws of the nation ... the larger interest of the national economy and the Nigerian people must be defended at all cost". In October 2009 Sanusi Lamido Sanusi, governor of the CBN, addressed the ICAN annual conference. He revealed a number of improprieties in direction of eight of the banks, including loans made to directors with inadequate security. Sanusi said "While these were happening, where were the accountants, the auditors? While these were happening, someone was reporting profits, paying dividends out of operations that could not by any standards be said to be profitable. That is why we are where we are". Speaking later Elizabeth Adegite, President of ICAN, called on chartered accountants to play a more critical role in ensuring good corporate governance.

As of 2010 Emmanuel Ikhazobor, sole administrator of the Nigerian Stock Exchange (NSE), was threatening to delist companies that did not comply with legal and regulatory requirements. Companies were failing to submit their audited reports when auditors noted the possibility of misappropriation of funds. For example FAMAD Plc, which had the first female president of ICAN as chairman of its board, had not held annual general meetings for about four years because the auditors had queried financial transactions and therefore the annual reports had not been submitted. Apparently there had been massive asset stripping in the company before it was finally de-listed on 2008.