MAY 13, 2013
Investors decry growing corporate donations to regulatory agencies *Say they amount to inducement *Five banks donate N232.65m to FRC in 2012 By NKIRUKA NNOROM
S
hareholders have expressed displeasure over the increasing level of financial donations by corporate organisations to various government and regulatory agencies in the country, calling on the federal government and the National Assembly to put a stop to the practice. They said it amounts to inducement when a company makes financial donations to regulatory bodies that
have oversight functions over it, adding that such donations can compromise the effectiveness of their regulatory functions. Findings by Financial Vanguard revealed that the Financial Reporting Council of Nigeria, FRCN, received financial gifts totaling N232.65 million from five banks towards the construction of the International Financial Reporting Standards (IFRS) Academy in 2012 alone. The banks include Access Bank Plc, Guaranty Trust Bank Plc, Diamond
Bank Plc and Sterling Bank Plc. Out of N173.229 million cash donations made by Access Bank within the same year, N50 million was given to FRC; Guaranty Trust Bank also donated a total sum of N50 million to
Reactions trail World Bank’s economic rating of Nigeria
the same FRC, while it donated N4.5 million and N3.12 million to the Nigerian Stock Exchange, NSE, and Ogun State Government Educational Development Programme respectively. Diamond Bank on its part made N21 million donation towards construction of FRC/IFRS Academy and N3.15 million donation to the agency’s annual reporting summit. Sterling Bank also handed out N8.50 million to FRC; Lagos State Government got N20 million from the bank, as its contribution towards 2012 Economic Summit. It also donated N15.6 and N4.41 million to Lagos
Continues on page 18
R
*From left: Managing Director and Chief Executive Officer, Federal Mortgage Bank, Mr Gimba Kumo welcoming Gov. Liyel Imoke of Cross River State, during the visit of the governor to FMBN in Abuja with them is Assistant on Mortgage Finance to the Governor, Mr Edward Ogon (m).
eactions has continued to trail the new economic rating of Nigeria by the World Bank, which moved the country from a low income nation to a medium income one. The bank had hinged Nigeria’s new rating on the reduction of poverty rate per capita in the country from 64.2 per cent to 62.6 per cent, as well as improvement in revenue accretion. According to the World Bank Country Director for Nigeria, Ms. Marie Francoise Marie-Nelly, the decision on Nigeria’s rating was taken at last month’s Spring meeting of the World Bank/International Monetary Fund (IMF) in Washington. The improvement in rating gives the country the privilege of borrowing from
Continues on page 19
140.25
1.3
2,418.00
+4.00
17.52
-0.08
104.58 +1.73 95.89 CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR
154.75 240.7446 202.9856 165.8806 1.5781 0.2896 232.367 25.1376 41.2634 41.2634 233.8118
155.25 241.5224 203.6414 166.4166 1.5832 0.2996 233.1178 25.2193 41.3967 41.3967 234.5672
+1.90 SELLING 155.75 242.3003 204.2973 166.9525 1.5883 0.3096 233.8686 25.3009 41.53 41.53 235.3227
CBN Exchange rate as at 10/05/2013 C M Y K