Financial Reporting Council of Nigeria (FRC) has taken punitive measures against the Nigerian Maritime Administration and Safety Agency (NIMASA), imposing a hefty N500 million penalty due to a breach of financial reporting standards.
Gatekeepers News reports that the FRC has also suspended NIMASA’s 2018 audited financial statement.
The FRC also directed NIMASA to commence the restatement process of its audited financial statement for the year ended December 31, 2022.
The action, the council said, was in accordance with the FRC Act 2011 (as amended) and the council’s guidelines and regulations for the inspection and monitoring of reporting entities.
Additionally, the certifiers of NIMASA’s financial statement, Dr. Bashir Jamoh and Chudi Offodile, have had their FRC registration numbers suspended, prohibiting them from certifying financial statements in Nigeria.
Furthermore, NIMASA is directed to publish the withdrawal of its 2018 financial statements in national newspapers within seven working days.
“The FRC registration numbers of certifiers of NIMASA’S Audited Financial Statement, Dr. Bashir Jamoh (FRC/2017/CIANG/00000016699) and Chudi Offodile (Unregistered), are hereby suspended,” the statement reads.
“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“The 2018 Audited Financial Statements of NIMASA are hereby withdrawn, and NIMASA is directed to restate its 2018 audited financial statements.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notice, in at least two national newspapers (full page), that their 2018 financial statements and returns have been withdrawn for non-compliance with Financial Reporting Standards.”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 said it would immediately post the information on its website and inform other regulatory agencies that the defective financial statements have been withdrawn.
“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,” FRC said.
“Penalty Imposed: The Council hereby imposes a Type 6 penalty of N500,000,000 (Five Hundred Million Naira) for the withdrawal of the 2018 financial statement, in line with Regulation 18 of the FRC Guidelines/Regulations 2014.”
The FRC said it is committed to maintaining financial reporting standards and ensuring the accuracy and reliability of financial statements.
The action against NIMASA, the council said, serves as a reminder to all reporting entities of their responsibility to adhere to established guidelines and rules.
