Tinubu’s Investigator Finds Flaws in CBN’s Audited Accounts as DSS to Arrest More Officials

The Central Bank of Nigeria (CBN) is facing scrutiny over its audited financial reports for the years 2016 to 2022, which have been found to contain loopholes and inaccuracies by a Special Investigator appointed by President Bola Tinubu.

The Investigator was mandated to probe the apex bank and other government entities over alleged discrepancies and irregularities in their financial accounts.

The CBN released its financial accounts for the seven-year period in August, amid an ongoing investigation of the financial services sector regulator by the Special Investigator, Jim Obazee, a former Chief Executive Officer of the Financial Reporting Council of Nigeria (FRC).

Obazee was appointed by President Tinubu on July 28, 2023, to investigate the activities of the suspended governor of the CBN, Godwin Emefiele, and other related entities.

The investigation also covers the Nigerian National Petroleum Corporation Limited (NNPC), FRC, and other Government Business Entities (GBEs).

The President said the move was part of his administration’s anti-corruption fight and that he expected a weekly briefing on the progress being made. He also attached a copy of his directive suspending Emefiele as Governor of the CBN on June 9, 2023.

According to Punch, a reputable Nigeria Newspaper platform, the CBN Special Investigator is working with a team of accountants, auditors, and forensic accountants to carry out the probe.

The sources close to the investigation revealed that the CBN might be asked to withdraw its seven-year audited financial account reports over allegations of containing false and misleading data.

The sources said that the CBN did not prepare its financial accounts using the International Financial Reporting Standards 9 (IFRS 9), which requires full disclosure of all financial transactions.

Instead, the apex bank allegedly used guidelines obtained from the FRC through its IFRS Academy, a limited guarantee company set up by the FRC to train people in IFRS accounting.

The sources further said that the CBN paid N401.75m to IFRS Academy for the guidelines used in preparing the accounts. They said this was a violation of the Treasury Single Account (TSA) policy, which mandates all government revenues to be paid into a single account from which a certain percentage would be deducted for the government.

A top official close to the investigation who spoke with Punch on condition of anonymity said, “As a government institution if you are getting any revenue, you are meant to pay it into TSA from which a certain percentage will be deducted for the government.

According to documents, the N401m paid by the CBN for the accounting guidelines between 2016 and 2022 was paid into the IFRS Academy account. The academy is a limited guarantee company set up by the FRC to train people in IFRS accounting.

“The issue is that the guidelines used in preparing the CBN accounts between 2016 and 2022 are not IFRS 9 compliant. They are not even IFRS at all.

“They are just some guidelines that were cooked up by some people in FRC and sold to CBN. The CBN did not disclose all its transactions as required by IFRS 9. For instance, they did not disclose how much they spent on printing currency notes or how much they earned from selling forex.”

The official added that the Special Investigator would soon seek presidential approval to enable the FRC to order the CBN to withdraw the controversial financial accounts and prepare new ones that would comply with IFRS 9. He also said that the investigation would expose other anomalies and infractions in the CBN and related entities.

Moreover, the DSS has already quizzed some deputy governors of the CBN as the investigation continues.

Also, It was learnt that more cases involving Emefiele might soon be revealed in court sessions.

Tinubu had on July 28 directed the CBN Special Investigator to work with security and anti-corruption agencies to provide a comprehensive report on public wealth currently in the hands of corrupt individuals and establishments, whether private or public.

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