FRC halts investigation over Sanusi’s legal action

FRC halts investigation over Sanusi’s legal action

Posted by Sylvester on Friday, March 28, 2014 0

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A legal action instituted by the suspended Central
Bank of Nigeria (CBN) Governor, Malam Sanusi
Lamido, yesterday prompted the suspension of
investigation into the activities of CBN by the
Financial Reporting Council. Sanusi was expected to
appear before the panel alongside former Deputy
Governor (Operations), Mr. Tunde Lemo; Acting
Governor, CBN,
Mrs. Sarah Alade; Dr. Kingsley Moghalu, Alhaji
Suleiman Barau (CBN Deputy Governors) and the
Managing Director, Bank of Industry (BoI), Ms.
Evelyn Oputu. At the resumed hearing, the Executive
Secretary/ Chief Executive Officer, FRC, Mr. Jim
Obazee, was, however, presented with a letter from
the suspended governor’s lawyer stating reasons
Sanusi could not make it to the hearing.
The letter, which referred to the pending court case
before a Federal High Court, Lagos by Sanusi,
pointed out that in view of the pending application for
interlocutory injunction dated 26th March 2014, and
in line with the provision of the law, where there is a
pending action before a court of competent
jurisdiction, an application for an injunction, that
status quo be maintained pending the interpretation
of the injunction. Obazee, however, said the
investigation would continue at the CBN office, which
is an administrative procedure of the FRC.
He said because of the documentations that had
been sent, the panel would wait for the court papers
and study the court papers before the next invitation
would be extended as appropriate. On CBN’s
investment in BoI, he said apart from the fact that
there was no management approval for such, the
content of the debenture certificate was not also
understood.
He said, “The reason we didn’t understand the
debenture certificate is because we do not believe
there was a debenture issued. We also want the Bol
to confirm whether they are in custody of the N500
billion because we can still see monies coming out
from the CBN.”