The Nigerian Maritime Administration and Safety Agency (NIMASA) has been sanctioned by the Financial Reporting Council of Nigeria (FRC) for violating government’s rules in financial reporting.
The council has not only asked the maritime regulatory agency to pay an infringement fine of N500 million, it’s Director General, Dr Bashir Jamoh has been suspended from certifying any financial records in Nigeria.
Also axed by the agency alongside Jamoh for the alleged unwholesome practice is NIMASA’s Executive Director of Finance and Administration, Mr Chudi Offodile, whose financial statements reporting licence was equally suspended alongside that of his boss.
By the suspension, the duo are rendered incapable of certifying any financial statements in Nigeria, until further notice.
The development, which is currently in a notice on the FRC website, is a punishment for NIMASA’s alleged penchant for posting financial irregularities as the financial statements for 2019, 2020, 2021, and 2022 are all said to be inaccurate.
According to the official notice dated 30th November 3023, “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”.
Additionally, FRC ordered the withdrawal of NIMASA’s 2018 Audited Financial Statements even as it directed the maritime industry regulator to restate its 2018 audited financial statements.
More humiliating was the notice directing NIMASA to “publish within seven (7) working days from the date of this notice, in at least two national newspapers (full page) that (its) 2018 financial statements and returns have been withdrawn for non-compliance with Financial Reporting Standards”.
By this, FRC is to “immediately post this information on its website and inform other regulatory agencies that the defective financial statements (of NIMASA) and returns have been withdrawn for restatement”.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, would form the basis for the preparation and submission of audited financial statements for the years ended 31st December 2019, 2020, 2021, and 2022.
The notice went further to state 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 N500,000.000 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 reliability 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”.
