Officials of FRC has accussed SEC of contravening the FRC Act, 2007 by failing to submit their audited accounts, approved annual budgets and Medium Term Expenditure Framework.
The FRC said SEC failed to remit N10.34bn accruing to it as operating surplus in 2007 and N11.61bn in 2008, while it said that the NPA failed to remit N3.79bn in 2007 and N2.53bn in 2008.
Accusations
In a brief made available to SEC officials ahead of the meeting, the FRC said, “In the process of monitoring the compliance of SEC to the FRA, 2007, we observed the following:
“For the year 2007; 80 per cent of SEC’s operating surplus was supposed to be N11,152,535,000 rather than N808,736,586,40, which SEC had earlier remitted to the Federal Government as 80 per cent of its operating cash surplus. SEC has, therefore, been unduly withholding the balance of N10, 343,798, 413.60 due to the Federal Government.
“SEC’s 2008 audited financial report indicated an excess of income over expenditure of N14,506,368,610. Eighty per cent of this sum is due the Federal Government and should thus have been remitted into the Consolidated Revenue Fund of the Federal Government before the end of April 2009.
“In spite of all the reminders that this commission has sent to SEC, there is no indication that SEC has made this due remittance after these years.”
The FRC added, “There is no evidence that SEC has produced its audited financial reports for 2009, 2010, 2012 and 2013. Each year’s account was due on March 31 of the succeeding year.
“In spite of the commission’s various requests, SEC has not availed the FRC of its three-year estimates of revenue and expenditure for 2010-2012, 2012-2014 and 2013-2015. SEC has failed to forward to the FRC its approved annual budgets for 2010, 2011, 2012, 2013 and 2014.
“There is no indication to the effect that SEC has appropriately computed and duly remitted 80 per cent of its operating surpluses for 2009, 2010, 2011, 2012 and 2013.”
SEC Response
The Deputy Director, Treasury, SEC, Mr. Sunday Garuba, said the audited accounts of the agency for the years demanded by FRC were ready and would be made available.
He also said that as a regulator, SEC had been sticking to the rules but added that in recent times; the agency had been operating on the basis of zero budget and that the downturn in the capital market operations from 2008 had affected the capacity of the organisation to make money.
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