Financial Reporting Council Queries Bank Of Industry Over Missing Assets


JIM OBAZEE BEVERLY HILLS, March 08, (THEWILL) - Worried by the misleading financial statement prepared by the Bank of Industry and the unsatisfactory responses from its management, the Financial Reporting Council FRC has queried the bank, noting that its reports are capable of misleading the public.

It therefore requested that all documents relating to all its transactions and operations be provided for its verifications.

In the letter titled 'Re: Non Compliance with statement of Accounting Standards (SAS) dated February 6, 2014 to the BOI managing director, Evelyn Oputu, the council referred the bank to the several meetings with it and Olusegun Aganga, minister, trade and investments as unsatisfactory.

The letter which was signed by Jim Obazee, FRC executive secretary, copied Aganga, and the Partner, Akintola Williams Deloitte, the bank's auditor.

'Our council has reviewed your submissions and we regret to inform you that we are unsatisfied because the report is still capable of misleading a relevant stakeholder.

You are hereby required to furnish our council, not later than seven days from the date of this letter, with the under-listed documents/reports as they may provide a pathway for an amicable resolution that will give our council comfort on this matter', the council noted.

The documents being requested for by the council include sources of the reclassifications of its investment properties which were not in BOI's 2010 and 2011 accounts but in the restated accounts for the two years.

Others are management discussion and analysis for classifying the investment properties into previous categories in the first place and, the valuation report, from a FRC registered valuer, on all the investment properties that are now recognized in the restated financial statements and also accounted for in the 2012 accounts.

Also requested by the FRC are applicable values of the individual investment properties, auditor's physical verification attestation letter on all the investment properties and also, a schedule of rental income earned on each of the properties over the last three years (2010, 2011, and 2012).

Others are the evidence that the rental income was recognized in the BOI's income statement, the rental income receivable and the identity of the debtors, the scheduled of occupants of the investment properties analysed into related parties, third parties, corporate, individuals etc and the evidence of BOI's ownership of all the restated investment properties including, but not limited to, certified title documents.

In addition, the bank is also asked to submit to the FRC, the three years audited financial of the managed funds covering 2010, 2011 and 2012 for each of the funds.

The bank is also requested to submit, the memorandum of understanding between the BOI and the National Automotive council, (NAC) on the management expenses on the NAC managed intervention funds as well as the attestation of the external auditors of the NAC funds.

BOI had created an exceptional item of N1.
255 billion for NAC from the intervention fund that is principally for onward lending to qualified beneficiaries in the automotive industry.

FRC, it was learnt is interested in the conditions for this.