Could AfriBank, one of the megabanks in Nigeria, proves to be the Nigeria’s version of the Enron Corporation, America’s poster child for corporate sleaze and financial manipulation? I think so. Check out ThisDay Online story on the bank:
“A major crisis reminiscent of the Enron saga is rocking Afribank Nigeria Plc as its immediate past Group Managing Director, Mr. Patrick Olayele Akinkuotu, alleges that the latest financial report of the bank for the year ended March 31st, 2006 is cooked. But the bank’s external auditors –Akintola Williams Deloitte, insist that their audit report on the bank’s accounts are a true, fair and accurate representation of its financial health for the year under review, stressing that the Central Bank of Nigeria (CBN) has given their job a clean bill of health.”
Who is zooming who in this drama? The Ex-Managing Director or the bank’s board of directors? Â
I pitch my tent with the small guy here, Mr Akinkuotu. It takes gut and a good dose of decency and moral consciousness for Mr Akinkuotu to whistle the way he has. And the nation needs more of that.
The stakes are pilled high against the whistle-blower (Akinkuotu); he has to contend with Akintola Williams Deloitte - Nigeria’s most prominent accounting firm; the chairman and board members of of the bank, who are well connected in the society; and elements at Central Bank, the regulatory bank of the land, who are favorably disposed toward the bank’s board.
Now that the national assembly and bank regulatory agencies have been informed, via a petition, would Nigerians and those whose money is being messed-with get to have a fair and thorough investigation?
QUESTIONS:-
a) When did Mr Akinkuotu cease being the MD?
b) Does the annual report incriminate him?
c) What does he stand to lose or gain if the books are cooked or not?
d) What is Akintola-Williams Deloitte’s motive for covering up a doctored report?
e) What does the new MD/management stand to gain from a doctored report?
Answers to these questions should shed more light on the matter. Until then, I shall keep an open mind.
October 16, 2006 at 2:06 pm
In addition to your questions (some of which I can accurately answer), I will add:
What were the circumstances leading to Mr Akinkuotu’s resignation? He has been on vacation since the middle of the year and he just resigned a few weeks back.
October 16, 2006 at 2:55 pm
Its great news that a CEO (former or not) can squeal, despite being part of the system that once condoned what he’s whistling about.That at least shows that we are rediscovering our consciences.Maybe the EFCC bug has caught on in the corporate world too.
October 19, 2006 at 2:08 pm
very interesting. It could be a case of sour grapes on the part of the previous MD or more serious. the banks directors are ultimately responible for the accounts and the audiotrs only say if they are a true reflection of the banks’ position
October 24, 2006 at 4:37 am
This is more to this than sour grapes, I want to believe. The ex-MD is a firstclass banker with impeccable record, and knowing the odds against him, he must have strong reasons to squeal.
October 24, 2006 at 9:08 pm
[...] Fraud at Afribank The Afribank banker that squealed to the National assembly about some accounting irregularities seems to have some truth in his petition afterall. The lower house will appoint an independent consultant to investigate the case against the bank’s board of directors. “The House committee is launching an investigation into how the bank allegedly “round-tripped†a N500 million loan, disguised as agricultural loan to PAMOL, a subsidiary of Dunlop Plc, so that the company could repay at a rate of 14 per cent. The House was also interested in knowing if Afribank registered the N500 million loan with the Central Bank of Nigeria (CBN) so that it may benefit from the Federal Government’s subsidy of six percent on agricultural loans. Members of the committee had expressed concerns that the bank’s activities smacked of economic sabotage.” –Thisday Nov. 1, 2006. [...]
November 3, 2006 at 10:09 am