irondome:


Posts like amaze me much. Do you guys just post just to antagonize a government? So you rather happy with an era where everyone flouts corporate regulations with impunity? Na wa oooo

bettercreature:
So you are supporting bank fraud?

erekoshe:
Soon they'll roll back the TSA, where's the substitute?? You wanna kill the banks because you're fighting corruption?? Give them an alternative to sustain their business.. In the long run, the low level staff get fired not the top management and the banks start crumbling again. The CBN is even more corrupt than the commercial banks, when last did CBN recruit openly? Only via kits and kin...no transparency in anything they do and you wanna clean up a corrupt banking sector.

Let the CBN clean up her corrupt mess fully and then clean up the commercial banks, then TSA will make sense. For now, the repercussion will be enormous on the economy... Time shall tell

doctokwus:

Rubbish. What nigerian banks have been practising forma years is not banking.
All over the World,banks make their profit by lending to various strata of businesses and getting interest payment front it.They even aggressively seek to woo people to get loans at competing interest rates for all sorts of purchases,businesses,lands,houses etc and reap from the interest payment.
Let me give an eg,with nigeria's large population,if a bank gives credit for 1million varied people that conservatively pay interest of 10,000/year,thats 10billion for credit only, by d time u add profit from other financing, u get a good idea of where d money is.
But here they want to use govt money to trade,businesses are stifled,the economy stagnates and no jobs.
Now that free govt funds are no longer there,politicians too are getting squeezed, they wud have no chive than to do real banking

staymore:
Will that stop them from stealing?

ikenigel:

How much do you have in the totality of all your Bank Accounts?

fizzy4luv:
That fine is far too small, 10% of such an hefty amount won't discourage other banks from doing such next time. I'm sure skye bank treasury would have make good use of the money for the duration of illegal concealment. I'm sure the float on such hefty amount itself will pay the fine not minding short term ROI the fund would have yielded.

Young03:
Mtcheew nonsense

d one wey first bank pay wetin them use d moni do

c as i de suffer like say i de prison

even garri to drink, no see

Love Machine:
Those fines will still go to private pockets.

kokorodudu:


Olodo rogbodo. You sabi how banking dey work?

erekoshe:


First of all, fraud is in every facet of the economy, I'm not supporting it though. But a judge need to be clean before crucifying criminals. Let him who is without ain cast the first stone.

The banks are fraudulent and so is the regulatory body.. Let the regulatory body clean herself then clean the banks... Cleaning the banks is fine if well managed and properly done

mbulela:


08 Nov 2015
http://www.thisdaylive.com/articles/tsa-cbn-fines-skye-bank-n4bn-for-concealing-mdas-funds/225038/

Bank accused of shrouding N40bn until discovered by CBN examiners

Tokunbo Adedoja

Less than two weeks after it sanctioned two major banks for flouting Federal Government directives on Treasury Single Account, the Central Bank of Nigeria (CBN) has imposed a fine of N4 billion on Skye Bank for concealing funds belonging to Ministries, Departments and Agencies (MDAs).


In a circular from CBN, addressed to the Chairman, Board of Directors of Skye Bank, the apex bank slapped Skye Bank with a fine of N4,005,228,976.35, which it said represents 10 percent of the concealed funds belonging to Federal Government MDAs.
The circular said the amount would be debited from Skye Bank’s current account with CBN.


The CBN circular obtained by THISDAY from industry sources, showed that Skye Bank failed to report MDAs’ balances amounting to N40,052,289,769.47, as at October 23, 2015, more than a month after the TSA deadline had expired.


The Federal Government had directed that balances/receipts due to the government or its agencies be paid into a TSA domiciled in the CBN except otherwise expressly approved. The TSA is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time. A September 15 deadline was given for full compliance with the directive.


CBN's hammer had earlier fallen on two major banks - First Bank of Nigeria Limited (FirstBank) and United Bank for Africa (UBA) Plc for failing to comply with the directive on TSA. While a fine of N1,877,409,905.12 was imposed on FirstBank, UBA was fined N2,942,189,651.45.


The fines imposed on the two banks represented 5% of unremitted funds.
Unlike UBA and First Bank that were sanctioned two weeks ago, a higher percentage (10%) of fine was imposed on Skye Bank because it shrouded the MDAs' funds until the funds were uncovered by CBN examiners during a visit to the bank.


While notifying Skye Bank of the fine, the apex bank’s circular signed by the Governor, Mr. Godwin Emefiele, noted an October 14, 2015 request by its Director of Banking Supervision, Mrs. Tokunbo Martins, for information on Skye Bank’s total amount remitted and unremitted to TSA in a prescribed format with a submission deadline of 12pm, October 15, 2015.


It however stated that the bank’s initial submission on “15th October 2015 in respect of the information requested indicated unremitted amount of N442, 916,642.92, a rendition which was false as your bank failed to report FGN MDAs’ balances amounting to N40,052,289,769.47 as at 23rd October 2015.”
The unreported sum, it said, was unearthed during CBN examiners’ onsite visit to Skye Bank on October 26, thereby aggravating the offence.


“The fact that it took CBN Examiner's visit to your bank before this was unearthed is unacceptable,” the circular stated.
CBN also issued a strong warning to the board of the bank to desist from allowing a similar situation to reoccur as such would be met with stiffer sanctions.


“For the avoidance of doubt, the CBN shall continue to frown at incidences of non-rendition of returns, late or false/inaccurate returns, other false/inaccurate information or any infraction whatsoever. The CBN shall, in such instances, impose sanctions as appropriate,” it further stated, signaling a stricter regulatory regime where deliberate breaches would not be tolerated.


THISDAY had exclusively reported three weeks ago that two prominent banks faced sanctions for circumventing the presidential directive on Treasury Single Account (TSA). The THISDAY report had noted that CBN was considering imposing a hefty financial sanction, suspension or removal of the CEOs, and the dissolution of the board of directors.


A week after the report, the central bank imposed a N4billion sanction on First Bank and UBA for concealing funds belonging to Nigerian National Petroleum Corporation (NNPC).


The Federal Government directive on TSA had sent shock waves around the financial sector due to the huge government deposits in commercial banks that would be affected by the policy as fears mounted that it would further tighten liquidity.


Some banks had tried to hide under the authorisation letter from the Accountant-General of the Federation, Alhaji Ahmed Idris, who tried to exempt certain agencies, and were using that as a basis not to comply with the TSA.
But CBN, in line with its September 9 circular, restated its resolve to punish any commercial bank that failed to comply with the policy on the TSA.


CBN however moved to ease liquidity in the banking system, in response to a severe liquidity squeeze in the interbank market at the last meeting of the Monetary Policy Committee by ensuring that the Monetary Policy Rate (MPR) remained unchanged at 13 per cent+/- 200 basis points around the symmetric corridor and also reduced Cash Reserve Requirement (CRR) from 31 per cent to 25 per cent to reflate banking sector liquidity.

mbulela:

You are not making sense.
So we should seat with hands akimbo until we find a saint before we start adhering to simple rules and regulations?
What sort of chaos are you suggesting?
The next logical question is ensuring that the fines are used judiciously. Organisations should learn to play by the rules. Caught thieves should be dealt with. No need for waiting for saints before we start punishing infractions. The existence of other thieves is no excuse for stealing.

erekoshe:



Was I talking to you bro?

Nevertheless, let's talk about your points.
Should we find a saint before we start adhering to simple rules? NO but let's make it a level playing ground, let's punish all offenders. Are we doing that? NO. There are some sacred cows.. (Won't share details)

The CBN has bruised several of her own orders, they've messed the sector up several times and are even responsible for several decline in the economy. Who'll punish them?? What do you know of the central bank activities, go review access and intercontinental brawl, oceanic sales, Amcon and even NIBBS activities, or check out the BVN messed up DB where ur name and face on the DB don't correlate, lest I forget the Heidal project. Dude, you don't know jack abt the CBN so shut up.

Fine doesn't really solve problem, it create greater and smarter thieves. Find the root cause of a problem and fix it before fining. Close the loopholes.

LordMecuzy:
Chai Only fines self fit sustain our 2016 budget....

Nice one Buhari let all firms know it's not business as usual

A new sheriff in town....

Ride on my President the" good people" are solidly behind you,

No Shaking

Atlantian:
Skye Bank will lay off 4000 staff, increase interest rate, COT and other sundry charges. Guess who the real loser is. Listen, Buhari is being timid by these fiscal threats on employers of labour, instead of focusing attention on how to diversifiy economy.

Atlantian:
Skye Bank will lay off 4000 staff, increase interest rate, COT and other sundry charges. Guess who the real loser is. Listen, Buhari is being timid by these fiscal threats on employers of labour, instead of focusing attention on how to diversifiy economy.

mbulela:

There is an inherent daftness in your post.
So we should just allow organizations to flout laid down rules and regulations?
Do you understand that this act of undeclaring funds is fraud in its true sense?
What has that got to do with diversifying the economy?
So because they will increase arbitrarily COT (which is not possible as charges are regulated), they should be allowed to fraudulently hide funds?
Do you see the illogical premise of your argument?

erekoshe:



Was I talking to you bro?

Nevertheless, let's talk about your points.
Should we find a saint before we start adhering to simple rules? NO but let's make it a level playing ground, let's punish all offenders. Are we doing that? NO. There are some sacred cows.. (Won't share details)

The CBN has bruised several of her own orders, they've messed the sector up several times and are even responsible for several decline in the economy. Who'll punish them?? What do you know of the central bank activities, go review access and intercontinental brawl, oceanic sales, Amcon and even NIBBS activities, or check out the BVN messed up DB where ur name and face on the DB don't correlate, lest I forget the Heidal project. Dude, you don't know jack abt the CBN so shut up.

Fine doesn't really solve problem, it create greater and smarter thieves. Find the root cause of a problem and fix it before fining. Close the loopholes.

irondome:


Imagine such a warped line of reasoning. That goes a long way to show the kind of person the guy is; stealing is good as long as a fraction of the money is used to feed the needy. Are Skye bank, UBA and FirstBank the only banks with MDA accounts? Why did others obey while these ones decided to flout a presidential directive. Arrant nonsense.

irondome:



All these do not negate Mbulela's points. CBN has an oversight function to enforce its regulation, which they have promptly done here; on this matter, I reckon they deserve a pat on the back and not a stick. It's rather preposterous that you are clamoring for the latter.

On who controls the regulators, I guess it's within the purview of the national assembly; you may play your part in our nascent democracy by petitioning the NASS on the issues you raised here.

mbulela:





Was I talking to you bro?

Is this a rhetorical question? This is a forum not your WhatsApp group.

Nevertheless, let's talk about your points.
Should we find a saint before we start adhering to simple rules? NO but let's make it a level playing ground, let's punish all offenders. Are we doing that? NO. There are some sacred cows.. (Won't share details).
If you won't share details, then I can't discuss the point with you. As far as it is known in the public domain, everyone found hiding funds against TSA has being punished and the punishment has been uniform. If 1st bank and UBA can be punished I struggle to see the sacred cow in view.

The CBN has bruised several of her own orders, they've messed the sector up several times and are even responsible for several decline in the economy. Who'll punish them?? What do you know of the central bank activities, go review access and intercontinental brawl, oceanic sales, Amcon and even NIBBS activities, or check out the BVN messed up DB where ur name and face on the DB don't correlate, lest I forget the Heidal project.
You have made valid but largely irrelevant points to the issue at stake. It is like saying because the referee in a premiership match made a wrong call in the 12th minute, he has lost the right to make a right and stringent call in the 31st. None of the issues you have raised negates the enforcement of rules as it concerns TSA. It is like saying a thief should be pardoned because the whistleblower is an adulterer.

Dude, you don't know jack abt the CBN so shut up.
Stop throwing tantrums like a 6 year old (I assume you are not one). You know very little and it is obvious. I am open to learn from others but you so far you have failed to make sense.



Fine doesn't really solve problem, it create greater and smarter thieves. Find the root cause of a problem and fix it before fining. Close the loopholes.
Fine is not meant to solve a problem, it is made to deter law breakers. What root cause? you were asked to transfer money and you hid some. A fine was imposed. What else do you want CBN to do? Conduct deliverance on bank treasurers?