The Financial Reporting Council ,FRC, has announced a critical indictment of the 2018 Financial Reports of the Nigerian Maritime Administration and Safety Agency ,NIMASA, culminating in the imposition of a substantial fine amounting to N500 million.
In response to these findings, NIMASA’s Director-General, Dr. Bashir Jamoh, and the Director of Finance, Chudi Offodile, have faced suspension, rendering them incapable of certifying any financial statements in Nigeria.
This punitive action, now displayed on the Council’s official website, mandates NIMASA to publish the withdrawal of their audited accounts in two national newspapers within a strict seven-working-day timeframe due to non-compliance with financial reporting standards.
Specifically, the FRC has suspended the FRC registration number of Bashir Jamoh (FRC/2017/CIANG/00000016699), the Managing Director of NIMASA, and Chudi Offodile (Unregistered), effectively disqualifying both individuals from certifying any financial statements within Nigeria. Additionally, the FRC has ordered the withdrawal and restatement of NIMASA’s 2018 Audited Financial Statements.
This directive includes the publication, within seven working days, in at least two national newspapers, acknowledging the withdrawal of their 2018 financial statements and returns due to non-compliance with Financial Reporting Standards.
The FRC has underscored the gravity of this action by imposing a Type 6 penalty of N500,000,000 for the withdrawal of the 2018 financial statement in adherence to Regulation 18 of the FRC Guidelines/Regulations 2014. The management emphasizes the Council’s steadfast commitment to upholding financial reporting standards, ensuring the accuracy, and reliability of financial statements.
This stern decision by the Council is a consequence of NIMASA’s recurring trend of financial irregularities, extending beyond the 2018 financial year. The affected financial statements for 2019, 2020, 2021, and 2022 have also come under scrutiny, signaling a compelling caution to the agency.
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, this action by the Council aims to prompt corrective measures within NIMASA. It has informed other regulatory bodies of the flawed financial statements and the subsequent withdrawal for restatement.
Furthermore, the FRC has directed NIMASA to initiate the process of restating the 2018 audited accounts within two months, setting the foundation for the subsequent years’ accounts. The agency is required to submit the restated financial statements for 2018, accompanied by the management letters issued by their external auditors, to the Council within 60 days.
This assertive stance against NIMASA serves as a clear warning to all reporting entities, emphasizing the imperative of compliance with prescribed standards and regulations within the financial reporting landscape.
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