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Skye bank faults CBN on N4 billion sanctions

Published

9 years ago

November 12, 2015

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By Odunewu Segun

Sky Bank Plc has kicked against the N4bn fine imposed on it by the Central Bank of Nigeria over the accusations that it concealed funds meant for the TSA, saying that the apex bank’s actions were misdirected.

In a statement jointly signed by the Bank’s GMD, Timothy Oguntayo and Secretary, Abimbola Izu, it said the actions of the apex bank was misdirected since the bank not conceal any information on any of it accounts.

The bank added that the sum of N40 billion for which the fine was imposed on it came from NNPC account balances, claiming it had received a communication from the corporation excepting it from the treasury single account (TSA) operations.

Skye Bank said that a significant portion of the money for which penalty was applied belonged to the Nigeria National Petroleum Corporation’s Pension Funds and National Assembly Legislative Aides’ account balances.

Skye Bank said it received “a communication from the NNPC forwarding a letter from the Accountant General of the Federation on the treatment of NNPC funds”.

“By the communication, the bank is advised that an 18 business day window had been granted by the Vice-President, Yemi Osinbajo, within which a plan for the orderly withdrawal of the NNPC funds will be implemented,” the bank said.

The statement said Skye Bank had commenced engagement with the CBN to bring the issues to the attention of the banking sector regulator. The bank said it was also seeking a review of the penalty.

The Central Bank of Nigeria last week had imposed a fine of N4,005,228,976.35 for failing to report MDAs’ balances amounting to N40,052,289,769.47, as at October 23, 2015 – more than a month after the TSA deadline had expired.

But in its statement on Monday, November 9, Skye Bank said significant portion of the money for which penalty was applied belonged to the state-owned energy company Nigerian National Petroleum Corporation (NNPC) pension funds and National Assembly legislative aides account balances.

First Bank was also fined N1.87 billion for the refusal to remit about N37.55 billion belonging to the NNPC while UBA was sanctioned N2.94 billion for concealing a portion of the Corporation’s fund totaling N58.84 billion.