The Financial Reporting Council of Nigeria (FRC) has fined the Nigerian Maritime Administration and Safety Agency (NIMASA), N500 million over inaccuracy and irregularities in its audited financial statements for the year ended December 31, 2018.
The Council also suspended the FRC registration number- FRC/2017/CIANG/00000016699 of the NIMASA Director General, Dr. Bashir Jamoh and the certifiers of NIMASA’s 2018 Audited Financial Statement, and Chudi Offodile (Unregistered), rendering the two officials incapable of certifying any financial statements in Nigeria.
The FRC’s notice to NIMASA, which was published on its website tagged ‘Suspension and Restatement of NIMASA’s Audited Financial Statements,’ is under the FRC Act 2011 (as amended) and the Financial Reporting Council of Nigeria-Guidelines/Regulations for Inspection and Monitoring of Reporting Entities.
The council also ordered NIMASA to publish the withdrawal of the audited accounts in two national newspapers within seven working days for violating the financial reporting standards in the preparation of the 2018 financial statement.
According to FRC, this suspension renders them incapable of certifying any financial statements in Nigeria.“Withdrawal and Restatement of 2018 Audited Financial Statements: The 2018 Audited Financial Statements of NIMASA are hereby withdrawn, and NIMASA is directed to restate its 2018 audited financial statements in accordance with the FRC Act.
“NIMASA is required to publish, within seven working days from the date of this notice, in at least two national newspapers (full page), that their 2018 financial statements and returns have been withdrawn for noncompliance with Financial Reporting Standards.
“The FRC will immediately post this information on its website and inform other regulatory agencies that the defective financial statements and returns have been withdrawn for restatement,” the notice reads.
The FRC said this restatement will form the basis for the preparation and submission of audited financial statements for the years ended December 31, 2019, 2020, 2021, and 2022.
The council noted that NIMASA is required to file the restated financial statements for 2018, together with the management letters issued by their external auditors, with the Council within 60 days.
“The Council hereby imposes a Type 6 penalty of N500 million for the withdrawal of the 2018 financial statement, in line with Regulation 18 of the FRC Guidelines/Regulations 2014,” it said.
The Financial Reporting Council of Nigeria says it is committed to upholding financial reporting standards and ensuring the accuracy and reliability of financial statements.