Again, Skye Bank defaults NSE rules, fails to file 2016 accounts

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Skye bank
Skye bank

ADEBISI ADEMOLA

Skye bank
Skye bank

Skye Bank Plc for the second time in one year has failed the statutory requirements to file its results and accounts with the Nigerian Stock Exchange (NSE).

The bank, also in 2016 failed to file its 2015 accounts and attributed the default to the Central Bank of Nigeria’s intervention.

The financial institution had promised to file its 2016 account to the Exchange on Friday but has failed to do so.

Skye Bank had in a statement to NSE in March said, “The 2016 Audited Financial Statements which is already with the CBN for its review and regulatory approval; and the quarterly returns for 2016 would be filed on or before Friday, 12 May 2017.”

The stipulated three months given by NSE to listed companies to submit 2016 Audited Financial Statements (AFS) expired March 31, 2017.

The Exchange explained that companies who failed to file their AFS by the due date, have violated Rule 1.1.4, Rules for Filing of Accounts  and Treatment of Default Filing, Rulebook of The Exchange, which requires listed companies to file their AFS “with The Exchange not later than 90 calendar days after the relevant year end.”

But the above financial institution in a statement to the Bourse explained that delay on account of awaiting regulatory approval.

The company’s Company Secretary/General Counsel, Mr. Babatunde Osibodu, in a statement said, “Following the intervention of the Central Bank of Nigeria’s (CBN) in the Bank in July 2016, there was an over-haul of the Bank’s Corporate Governance framework which led to major resignations and new appointments into the Board; changes in specific internal structures and the need to have in place some other structures prior to the approval of the Bank’s accounts.

“This led to the conduct of an interim audit of the Bank’s half year accounts of 2016.

“As a result of these restructures and changes, the Bank is currently experiencing some delays with the completion of the audit exercise of its AFS for the year ended December 31, 2016,” he explained.

The action of CBN had dragged the company’s share price to N0.50 since 2016 and it is expected to remain flat over investors sentiment  trading.

The apex bank had last year intervened in the bank during which it dissolved its board and replaced it with Muhammad Ahmad led board and also appointed Tokunbo Abiru as the new managing director.

The lender had in its efforts to stay afloat, cut down on its staff strength which affected hundreds.

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