By Stanley Opara

Tuesday, 30 Nov 2010

The Vice-President, Institute of Investment Management and Research, Mr. Moses Egbo, has urged the Federal Government to enact relevant laws that will deter bank executives from siphoning depositors‘ funds for personal use.

He, however, said government should ensure that those found culpable for the parlous state of affairs that led to the problems in the banks were punished.

Egbo, who spoke in an interview during IIMR‘s Convention and Investment Workshop in Lagos, said for the rescued banks, a lot had gone wrong, with money siphoned and investors funds depleted.

He said the Central Bank of Nigeria had to find out what went wrong and put in place mechanisms that would forestall another loss of investment. ”There must be adequate planning and control put in place in the investment process,” he said.

He said, ”The Federal Government must enact legislation that ensures that those found guilty of mismanagement of banks have their assets and investments both locally and internationally forfeited to the government.

”This will serve as a deterrent to others so that when they are in positions of leadership or management, they will not follow the bad examples of their predecessors.”

He said the CBN should strengthen its regulatory framework, increase supervision of the banks and ensure that all officials were dedicated and not compromised.

The IIMR VP said it would be a good thing if Nigerians embraced the International Financial Reporting Standards.

He added that there should be more enlightenment on ways to forestall circumventing the system, adding that punitive measures could as well be taken against those that refused to play by the rules.

”We should avoid plea bargaining. It does not serve as a deterrent and may even encourage others to engage in fraud,” he said.

He added, ”IIMR is in the forefront of enlightening and training people on the importance of investment and analysing the investment atmosphere, advising prospective investors and government on the probable areas of investment and how to manage investment portfolio.”

 

Source: Punch