Financial Reporting Council Slams N500m Fine On NIMASA, Orders Restatement Of 2018 Audited Account In 7 Days

The Financial Reporting Council of Nigeria (FRC), on Thursday announced the suspension of the audited financial statements presented by the Nigerian Maritime Administration and Safety Agency’s (NIMASA) for the year ended December 31, 2018, calling for a restatement.
The Council also imposed what it termed a “Type 6 penalty” of N500m for the withdrawal of the said 2018 financial statement, in line with Regulation 18 of the FRC Guidelines/Regulations 2014.

Dr. Jamoh, DG, NIMASA
The action, which the FRC noted, is 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, followed the suspension of the Registration Numbers of persons who certified the said Audited Financial Statement, namely: Dr. Bashir Jamoh, the Director-General of NIMASA (FRC/2017/CIANG/00000016699) and Chudi Offodile who never registered with the council as required by law. Offodile, a lawyer and former member of the House of Representatives is the current Executive Director, Finance & Administration at NIMASA
This suspension, the statement noted, “renders them incapable of certifying any financial statements in Nigeria,” stressing that action against NIMASA “serves as a reminder to all reporting entities of their responsibility to comply with prescribed standards and regulations.”
Consequently, the council ordered the withdrawal of the financials, following which NIMASA was directed to restate same, and publish within seven working days from the date of the notice, “in at least two national newspapers (full page), that their 2018 financial statements and returns have been withdrawn for noncompliance with Financial Reporting Standards.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on its website and inform other regulatory agencies that the defective financial statements and returns have been withdrawn for restatement.”
FRC directed NIMASA to begin the process of restating the 2018 audited financial statement in accordance with the FRC Act, a situation it said “will form the basis for the preparation and submission of audited financial statements for the years ended December 31, 2019, 2020, 2021, and
“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 restated its commitment to upholding financial reporting standards and ensuring the accuracy and reliability of financial statements.