The Securities and Exchange Commission is investigating Ecobank
Transnational Incorporated over an alleged misstatement of its 2012 performance.
The Communications Adviser, SEC
Nigeria, Mr. Obi Adindu, confirmed this development in response to a text message
sent to him on Friday.
“The regulator is on top of the
issues and has engaged the authorities of Ecobank on the corporate governance
and investor protection issues thrown up by the reports,” his response read.
Attempt made to get an official
statement to that effect from Ecobank Nigeria was referred to the Head Office
in Togo, but an email sent to the Head Media and Group Communications, Mr. Nabi
Ouedraogo, was not responded to as at press time.
However, a source in Ecobank, said that the bank was not aware of such development.
“The only investigation I know of was
that which had to do with our chairman, but he was cleared by the regulators as
well as the government of all the allegations,” the source said. A Reuters
report on Friday quoted a source at SEC as saying that SEC held meetings with
Ecobank’s board directors on August 6 to discuss the issue, which was raised by
a suspended former head of finance at the bank.
The reported said that the source did
not elaborate as to what the bank was accused of misstating.
It added that Ecobank acknowledged
that there was an investigation, giving no details, and said it was fully
cooperating with the SEC.
The source said the regulator had
sent queries about Ecobank’s 2012 performance to all the directors, in line
with the International Finance Corporation corporate governance code.
In March, Ecobank, which has
operations in 32 African countries, said its 2012 pretax profit rose to its
highest ever level of $348m, up a quarter on the same period a year ago.
“The core element (of the allegation)
is on material misstatement of facts on (Ecobank) performance,” the SEC source
said. This may also affect whether or not a bonus awarded to the Chief Executive
Officer, Mr. Thierry Tanoh for that year was proper.
“All the executive directors have
been issued a specified questionnaire on matters emanating from the petition
and responses are awaited,” he said.
The initial complaint to the SEC came
from the bank’s suspended Head of Finance, Mr. Laurence do Rego, the source
said.
“I can confirm that our Board of
Directors met with the SEC in early August and that we are …. in continuing
dialogue with them. We are happy to offer them our ongoing cooperation,”
Ecobank spokesman Jeremy Reynolds told Reuters by telephone.
He said do Rego, who joined the
lender eleven years ago, was suspended because she falsely claimed to be a
qualified accountant. Do Rego had not responded to the bank’s invitation to
meet the board of directors and substantiate her claims.
Do Rego could not be immediately
reached for comment.
Ecobank has been in the spotlight
over debts owed by businesses associated with its chairman Kolapo Lawson, but
the SEC source said the regulator was now satisfied there was nothing untoward
about them.
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Society
I earnestly implore the authorities to get to the root of this matter. These guys are cruel slave masters!
ReplyDeleteOh yes!!! They really are......its so unbelievable and shocking
ReplyDelete