Nigeria Central Bank Fines Skye Bank N4bn For Concealing N40bn Government Funds

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. Click here to become one of our members and help us keep our quality news free and available for all.

Bank accused of  shrouding N40bn until discovered by CBN examiners

By Tokunbo Adedoja/thisdaylive.com

Less than two weeks after it sanctioned two major banks for flouting Federal Government directives on Treasury Single Account, the Central Bank of Nigeria (CBN) has  imposed a fine of N4 billion on Skye Bank for concealing funds belonging to Ministries, Departments and Agencies (MDAs).

In a circular from CBN, addressed to the Chairman, Board of Directors of Skye Bank, the apex bank slapped Skye Bank with a fine of N4,005,228,976.35, which it said represents 10 percent of the concealed  funds belonging to Federal Government MDAs.
The circular said the amount would be debited from Skye Bank’s current account with CBN.

The CBN circular obtained by THISDAY from industry sources, showed that Skye Bank failed to report MDAs’ balances amounting to N40,052,289,769.47, as at October  23, 2015, more than a month after the TSA deadline had expired.

The Federal Government had directed that balances/receipts due to the government or its agencies be paid into a TSA domiciled in the CBN except otherwise expressly approved. The TSA is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time. A September 15 deadline was given for full compliance with the directive.

CBN’s hammer had earlier fallen on two major banks – First Bank of Nigeria Limited (FirstBank) and United Bank for Africa (UBA) Plc for failing to comply with the directive on TSA.  While a fine of N1,877,409,905.12  was imposed on  FirstBank, UBA was fined N2,942,189,651.45.

The fines imposed on the two banks represented 5% of unremitted funds.

Unlike UBA and First Bank that were sanctioned two weeks ago, a higher percentage (10%) of fine was imposed on Skye Bank because it shrouded the MDAs’ funds until the funds were uncovered by CBN examiners during a visit to the bank.

While notifying Skye Bank of the fine, the apex bank’s circular signed by the Governor, Mr. Godwin Emefiele, noted an October 14, 2015 request by its Director of Banking Supervision, Mrs. Tokunbo Martins, for information on Skye Bank’s total amount remitted and unremitted to TSA in a prescribed format with a submission deadline of 12pm, October 15, 2015.

It however stated that the bank’s initial submission on “15th October 2015 in respect of the information requested indicated unremitted amount of N442, 916,642.92, a rendition which was false as your bank failed to report FGN MDAs’ balances amounting to N40,052,289,769.47 as at 23rd October 2015.”
The unreported sum, it said, was unearthed during CBN examiners’ onsite visit to Skye Bank on  October 26, thereby aggravating the offence.

“The fact that it took CBN Examiner’s visit to your bank before this was unearthed is unacceptable,” the circular stated.
CBN also issued a strong warning to the board of the bank  to desist from allowing a similar situation to reoccur as such would be met with stiffer sanctions.

“For the avoidance of doubt, the CBN shall continue to frown at incidences of non-rendition of returns, late or false/inaccurate returns, other false/inaccurate information or any infraction whatsoever. The CBN shall, in such instances, impose sanctions as appropriate,”  it further stated, signaling a stricter regulatory regime where deliberate breaches would not be tolerated.

THISDAY had exclusively reported  three weeks ago that two prominent  banks faced sanctions for circumventing  the presidential directive on Treasury Single Account (TSA). The THISDAY report had noted that CBN was considering imposing a hefty financial sanction, suspension or removal of the CEOs, and the dissolution of the board of directors.

A week after the report, the central bank  imposed a N4billion sanction on First Bank and UBA for concealing funds belonging to Nigerian National Petroleum Corporation (NNPC).

The Federal Government directive on TSA had sent shock waves around the financial sector due to the huge government deposits in commercial banks that would be affected by the policy as fears mounted that it would further tighten liquidity.

Some banks had tried to hide under the authorisation letter from the Accountant-General of the Federation, Alhaji Ahmed Idris, who tried to exempt certain agencies, and were using that as a basis not to comply with the TSA.

But CBN, in line with its September 9 circular, restated its resolve to punish any commercial bank that failed to comply with the policy on the TSA.

CBN however moved to ease liquidity in the banking system, in response to a severe liquidity squeeze in the interbank market at the last meeting of the Monetary Policy Committee by ensuring that the Monetary Policy Rate (MPR) remained unchanged at 13 per cent+/- 200 basis points around the symmetric corridor  and also reduced Cash Reserve Requirement (CRR) from 31 per cent to 25 per cent to reflate banking sector liquidity.
Source: thisdaylive.com

[/read_more]

Read full article

TODAY NEWS AFRICA
TODAY NEWS AFRICAhttps://todaynewsafrica.com
TODAY NEWS AFRICA is registered and headquartered in Washington, District of Columbia, United States of America. Our publication is widely read, respected and influential. By providing daily answers to questions our readers have about the people, the businesses and the continent of Africa, we are reaching a diverse and wide audience from around the world. Our readers, many of them world leaders, trust us because we are independent and truthful. Our advertisers understand the difference between news, views and ads. Contact us: [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

MOST POPULAR

239 scientists from over 30 countries urge WHO to tell the world about airborne spread of coronavirus

At least 239 scientists from over 30 countries are urging the World Health Organization to address the airborne transmission of COVID-19, a...

SEE IT: Certified true copy of the conviction of Nigeria’s House of Representatives Speaker Femi Gbajabiamila in the United States for $25,000 theft

The Speaker of the Nigerian House of Representatives Femi Gbajabiamila was convicted in the state of Georgia in the United States...

WHO warns access to HIV medicines severely impacted by COVID-19 as AIDS response stalls

Seventy-three countries have warned that they are at risk of stock-outs of antiretroviral (ARV) medicines as a result of the COVID-19...

Nigeria’s anti-corruption czar Ibrahim Magu who was arrested for financial fraud on Monday expected to be arraigned in court and removed from office after night in police custody

Nigeria's anti-corruption czar Ibrahim Magu who was arrested for alleged financial fraud on Monday is expected to be arraigned in...

Coronavirus update: Zambia, Ivory Coast and Malawi

Coronavirus numbers keep changing in Africa where more than 6200 people have now died and more than 233000 have contracted the...
- Advertisement -

LATEST STORIES

Ivory Coast’s Prime Minister and presidential candidate for ruling party Amadou Gon Coulibaly dies after ministerial meeting

Ivory Coast's Prime Minister and presidential candidate for the ruling party Amadou Gon Coulibaly has died after falling ill at a...

South African President heartbroken as COVID-19 kills Her Majesty Queen Noloyiso Sandile of the AmaRharhabe Kingdom

President Cyril Ramaphosa has expressed his profound sadness at the passing of Her Majesty Queen Noloyiso Sandile, Regent of the Royal...

Harvard University and MIT sue Trump admin over order to deport all foreign students, including tens of thousands of Africans, taking classes online amid COVID-19

Harvard University and Massachusetts Institute of Technology on Wednesday asked a federal court to temporarily block an order by the Trump...

Africa records over 500 000 COVID-19 cases

COVID-19 infections in Africa today surpassed 500 000, and there is concern as a growing number of countries are experiencing a sharp...

Residents describe mass executions as graves with over 180 bodies are found in Burkina Faso

Common graves containing at least 180 bodies have been found in a northern town in Burkina Faso in recent months, and available evidence...

[/read_more]

Read full article

error: Alert: Content is protected !!
Share
Tweet
Share
Pin
WhatsApp