FRC Fines NIMASA N500m For Non-Compliance With Financial Reporting Standards

…Orders Withdrawal Of 2018 Audited Financial Statements

…Bars NIMASA Managing Director From Certifying Financial Statements

The Financial Reporting Council of Nigeria has imposed a fine of N500m on the Nigerian Maritime Administration and Safety Agency
(NIMASA) for non-compliance with financial reporting standards.

It also ordered the suspension, withdrawal, and restatement of the 2018 financial statement of (NIMASA) and the suspension of the FRC registration numbers of the Managing Director of NIMASA Bashir Jamoh, and Chudi Offodile.

The move is a punishment for NIMASA’s seeming penchant for financial irregularities as the financial statements for 2019, 2020, 2021, and 2022 are also affected.

In a Notice posted on its website and seen by THE WHISTLER, the Council directed that the suspension of Jamoh and Offodile renders them incapable of certifying any financial statements in Nigeria.

The Notice dated November 30, reads, “The Financial Reporting Council of Nigeria (FRC) hereby issues a public notice regarding the suspension and restatement of the Nigerian Maritime Administration and Safety Agency’s (NIMASA) audited financial statements for the year ended December 31, 2018.

“This action is taken in accordance with the FRC Act 2011 {as amended) and the Financial Reporting Council of Nigeria-Guidelines/Regulations for Inspection and Monitoring of Reporting Entities.

“The FRC registration numbers of certifiers of NIMASA’s 2018 Audited Financial Statement, Dr. Bashr Jamoh (FRC/20) 7/CIANG/00000016699) and Chudi Offodile (Unregistered) are hereby suspended.

“This suspension renders them incapable of certifying any financial statements in Nigeria. The 2018 Audited Financial Statements of NIMASA are hereby withdrawn, and NIMASA is directed to restate its 2018 audited financial statements.

“NIMASA is required to publish within seven (7) 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this notice, in at least two national newspapers (full page) that their 2018 financial statements and returns have been withdrawn for non-compliance with Financial Reporting Standards.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on its website and inform other regulatory agencies that the defective financial statements and returns have been withdrawn for restatement.”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 Council also directed NIMASA to begin the process of restating the 2018 audited financial statement in accordance with the FRC Act.

This restatement, it added, 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 Notice added, “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 N500,000.000 for the withdrawal of the 2018 financial statement, in line with Regulation 8 of the FRC Guidelines/Regulations 2014.

“The Financial Reporting Council of Nigeria emphasizes its commitment to upholding financial reporting standards and ensuring the accuracy and relability of financial statements.

“This action against NIMASA serves as a reminder to all reporting entities of their responsibility to comply with prescribed standards and regulations.”