Shareholders’ group tasks banks on unaudited profits




Apparently dissatisfied with the declaration of profit in the first quarter unaudited 2010 account of most troubled banks, shareholders group, under the aegies of Progressive Shareholders Association of Nigeria has called for a comprehensive breakdown of profit after tax declared by these banks.


The National Co-ordinator of the Association, Mr. Boniface Okezie in an interview with The Guardian expressed worry on the profit being declared by these banks, as they have not written off substantial percentage of the bad debts hanging in 2009 audited account.He argued that any profit recorded from recovery is not the real profit, adding that the actual profits must be generated from the operations of the bank.


Okezie maintained that unless the banks commence its genuine business of lending to Real sector of the economy,  it would be difficult for them to return to profitability.“I am not yet satisfied on the running of these banks. We have recorded huge losses and these profits coming from recovery,  it is not the real profit. The profit should come from operations and not from recovery. I advise that they should go out, do genuine business, lend to the real sector and make profit.’’


The shareholders co-ordinator observed that some of the troubled banks are yet to utilise the bail out fund offered by CBN and wondered why such amount of money should be allowed to remain dormant.“The money given to some of these banks are not being utilised. The money should not be left dormant. The real sector and the manufacturing sector are groaning under low capital.


“The banks are not lending. If the banks are making profit as claimed by the new managing directors why don’t they lend. The profit they are declaring where did it come from. What business and programmes have they embarked on to make profit? I think the provisioning, they are talking about is deceptive,” he said.He also faulted the decision of the CBN governor to prevent the troubled banks from holding their AGM.


“For over one year the CBN governor is in power and there is noting to show for it. He has prevented the banks from holding their AGM. The Board appointed by the CBN is dormant and takes their directive from the governor and that is why things are not moving as expected and the economy is still.”According to him, nobody is against reform but the reform should be holistic and such that would boost the economy.


Speaking on the Asset Management Company (AMC), Okezie submitted that its establishment can not tackle the problem the Nigeria capital market.Okezie, who noted that the company, though yet to come on stream has no miracle with which to salvage the situation in the market urged the investing public not to place their hope on it.“I have said it before that AMC has no solution for the capital market. It is yet to come on stream, while hope on something that has no laid down  frame-work. Why hope on something that is yet to come on board,” he asked.


According to him, there a need for the  propagators of AMC to come up with laid down rules and frame-work on how it would be funded as well as how it was going to buy the toxic waste.  He described the programme as a misplacement of priority arguing that  government ought to have come up with other blue prints on how to revamp the market and the economy at large.






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