Is The FRC’s Case Against Stanbic IBTC Fueled By Personal Interests?

On Monday 26th October, 2015, we all woke up to hear the shocking news that the FRC had suspended Stanbic IBTC’s Chairman and CEO along with some of the KPMG auditors responsible for auditing Stanbic IBTC’s books.

As Stanbic has since responded claiming that FRC’s statements are inaccurate and more stories have been coming out indicating that all might not be what it seems, the question has to be asked if FRC’s case is actually fueled by personal interests.

Let’s look at the facts:-

1. The way the story broke

On the one hand, it could be argued that FRC simply let it be known that it has suspended these individuals and did so in a way to show it has nothing to hide/is not trying to help the organisation cover anything up.

On the other hand however, Stanbic IBTC’s comments that FRC did not follow the correct procedure makes one wonder whether they are simply incompetent at doing their jobs or whether there was another motive for the wide press coverage?

2. The Mahtani brothers

Stories are circulating that the real people behind the allegations are the Mahtani brothers, owners of Churchgate Nigeria Ltd and minor shareholders in Stanbic IBTC.

Why?

Well, the reports are that they were once 100% owners of Regent Bank plc but due to mergers, their shareholding has been diluted so that they are now minority shareholders and are not happy about it.

The reports go on to say that they are the ones sponsoring Jim Obazee, Executive Secretary and Chief Executive Officer (CEO) in his witch-hunt of Stanbic.

3. Lastly, Stanbic IBTC is the only Nigerian bank that is AAA rated by Fitch

It calls into question which do you believe? An organisation that is the only Nigerian Bank that is AAA rated by Fitch or an organisation that was used by the previous administration to silence the then CBN Governor when he made it public about the missing $20billion.

The jury is out and we are all watching to see how this plays out.