The Federal High Court in Lagos on yesterday dismissed separate suits filed by Stanbic IBTC Holdings Plc and KPMG Professional Services challenging the sanctions imposed on them by the Financial Reporting Council of Nigeria (FRC).
Stanbic IBTC had filed its suit following the suspension of its chairman, Mr. Atedo Peterside, and three directors by FRC, over alleged irregularities in their financial statements for 2013 and 2014.
KPMG and its partner Ayodele Othihiwa challenged FRC’s ‘regulatory decision’ against them following their role in the controversial financial statements.
They challenged the suspension of Othihiwa by FRC for alleged complicity of KPMG in the financial statements.
Justice Ibrahim Buba dismissed the N100m fundamental rights enforcement suit filed against the council and its Executive Secretary, Mr. Jim Obazee, by KPMG.
Justice Buba resolved all the issues raised by Stanbic IBTC in its suit in favour of FRC and dismissed the suit for lacking in merit.
The judge said it was up to the court to protect Nigeria and non-Nigerian investors when capital flight was becoming a problem.
“This court is unable to answer all the questions set by the plaintiff in favour of the plaintiff; rather against the plaintiff in favour of the defendants.
“All the issues argued are resolved against the plaintiff. This court must purposely, through judicial creativity, interpret our legislation meaningfully in these days of gross capital flight.
“Nigerian courts must protect Nigerian and non-Nigerian investors. This court is unable to agree with the plaintiff’s position” the judge held.
Before the main suit was heard, Justice Buba had restrained FRC from obstructing the operations of Stanbic IBTC.
The judge barred FRC from preventing the plaintiff or its subsidiaries “from carrying on their lawful businesses.”
Justice Buba ruled on an motion on notice for orders of injunction against FRCN and the National Office for Technology Acquisition and Promotion (NOTAP).
The plaintiff said FRC, since August 3, had been investigating its audited accounts for the year ended December 2014.
The investigations concern liabilities accrued in the plaintiff’s 2014 accounts in respect of franchise fees owed to Standard Bank of South Africa, the registration of which it said has been pending before NOTAP since 2011.
