Questions are being asked as to the appropriateness of
alleged keeping of N1 billion meant for International Financial
Reporting Standards (IFRS) Academy in current accounts with some first
tier banks by the Financial Reporting Council (FRC) contrary to
financial rules and regulation of public service.
BusinessDay investigations revealed that the N1 billion
had been depleted to about N800 million due to indiscriminate spending
by the council. Jim Obazee is the executive secretary, FRC.
Part of the expenditure profile of the money, according to
sources, was payment of minimum of $100,000 annually to subscribe to
the International Accounting Standards Board (IASB) foundation for the
past two years, with about $120,000 being proposed for this year.
A document in possession of BusinessDay shows that only
N50 million is left in Access Bank, where the N1 billion was originally
lodged; N700 million now in Zenith Bank, and N50 million in GTBank.
Some board members are said to be querying the
ostentatious lifestyle of the executive secretary and the mode of
dispensing favours indiscriminately to his cronies.
For instance, it was alleged that he approved payment of
N4 million to one Titus Osawe, an assistant director, for “information,
data sourcing and analysis” during the FRC investigation of CBN
financials.
In addition to this, FRC was said to have also spent about
N30 million taxpayers’ money on hotel accommodation for just three
people during its investigation of CBN.
Some of the board members are also raising eyebrows over
two armoured vehicles allegedly being used by Obazee –one in Abuja and
another in Lagos.
Sources at the council told BusinessDay that some of the
disenchanted members after series of complaints and petitions have
resigned to fate.
It was learnt that a board member of FRC (name also
withheld), who questioned why FRC should not be committed to best
practices and procedures in corporate governance in conduct of its
business was recommended to the Institute of Chartered Accountants of
Nigeria (ICAN) for sack.
Part of the letter by the board member reads: “Why are we
not having a fixed deposit account or purchasing of treasury bills to
earn income? The balance on this account is high enough to warrant such.
Why is the decision of the board regarding Treasury
bill with the N853 million of IFRS Academy fund not complied with? Why
is the amount kept in the current account with Access Bank and later
transferred to Zenith Bank still under current account? Who bears the
loss of income for over two years now?”
Informed sources said that the board
member was prompted by the feelings that this money may have been fixed
privately, saying that “at minimum of 10% interest rate on fixed
deposit, the fund could earn about N100 million annually”.
The board member is said to have
expressed his displeasure over Obazee’s singular instruction for the
movement of the money out of Access Bank, because the board member
challenged him on his style of leadership.
The IFRS Academy fund is a product of
contribution by banks and the Central Bank of Nigeria (CBN). The
objective of the academy, which is yet to take-off is, among others, to
make sure that there is the required competence and skills to move the
council forward.
It was also learnt that Obazee
masterminded the two-step downward demotion of all FRC staff as shown in
a letter signed by R.O Egbule, chairman, National Salaries, Incomes
& Wages Commission, which is at the presidency.
Currently, Obazee is said to be keeping
about 16 security operatives – eight in Abuja and eight in Lagos and
most of them are police officers and SSS operatives.
Also, the council is said to be paying
Obazee N600, 000 as ‘incidental’ allowance –excluding hotels and air
tickets for ‘any trip’. The frequency of his trip determines the amount
he earns as incidental.
It was also learnt that the FRC has spent
about N225 million for printing 150, 000 certificates which it mandated
companies to purchase. Each certificate costs N1, 500. Unfortunately,
only 15,000 people have registered so far for the certificate, further
questioning the council’s prudence in managing taxpayers’ money.
The board member, who questioned the
alleged outrageous price for the printing of the certificates, sent a
petition to the board.
Part of the letter reads: “Printing
(N78.99 million) – This is scandalous and it was stated to be for
certificates. Adequate explanation should be supplied since the old
stock has not been utilised up to 10% before this additional
expenditure. The figure is material and should not be expended as it
cannot be exhausted in 5 years.”
On Obazee’s local travel expenses, which
got swollen by N600, 000 per trip irrespective of the frequency in a
week (air ticket and accommodation excluded), the board member also
warned: “The N124.89 million on travelling local is double the figure of
last year. Full breakdown should be received as this is a big jump.
Documentary as against verbal explanation should be received.”
By Our Reporter
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