The Council also mandated the NIMASA to publish in two newspapers the suspension and restatement of its Audited Financial Statements within seven days from November 30, 2023.
The Financial Reporting Council of Nigeria (FRC) has imposed N500million fine against the Nigerian Maritime Administration and Safety Agency's (NIMASA) over the withdrawal of its 2018 Audited Financial Statements for inaccuracy.
The FRC also ordered NIMASA to restate the 2018 financial statement and file together with the management letters issued by their external auditors, to the Council within 60 days.
The Council also mandated the NIMASA to publish in two newspapers the suspension and restatement of its Audited Financial Statements within seven days from November 30, 2023.
This was contained in a public notice, FRC issued on November 30, 2023, titled: "Suspension and Restatement of NIMASA's Audited Financial Statements," obtained by SaharaReporters on Friday.
The Council which said that its action was taken 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, however, imposed suspension on Dr. Bashir Jamoh (FRC/2017/CIANG/00000016699) and Chudi Offodile for certifying NIMASA'S 2018 Audited Financial Statement.
The notice signed by the Council Management partly read: "The Financial Reporting Council of Nigeria (FRC) hereby issues a public notice regarding the suspension and restatement of the Nigerian Maritime Administration and Safety Agency's (NIMASA) audited financial statements for the year ended December 31, 2018.
"This action is taken 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.
"Suspension of FRC Registration Numbers: The FRC registration numbers of certifiers of NIMASA'S 2018 Audited Financial Statement, Dr. Bashir Jamoh (FRC/2017/CIANG/00000016699) and Chudi Offodile (Unregistered), are hereby suspended.
"This suspension renders them incapable of certifying any financial statements In Nigeria."
It added, "The 2018 Audited Financial Statements of NIMASA are hereby withdrawn, and NIMASA is directed to restate its 2018 audited financial statements. NIMASA is required to publish, within seven (7) working days from the date of this notice, in at least two national newspapers (full page).
"That their 2018 financial statements and returns have been withdrawn for non- compliance with Financial Reporting Standards. The FRC will immediately post this Information on its website and inform other regulatory agencies that the defective financial statements and returns have been withdrawn for restatement.
"NIMASA is directed to begin the process of restating the 2018 audited financial statement in accordance with The FRC Act. This restatement will form the basis for the preparation and submission of audited financial statements for the years ended December 31, 2019, 2020, 2021, and 2022.
"NIMASA is required to file the restated financial statements for 2018, together with the management letters issued by their external auditors, with the Council within 60 days.
"The Council hereby imposes a Type 6 penalty of N500,000,000 (Five Hundred Million Naira) for the withdrawal of the 2018 financial statement, in line with Regulation 18 of the FRC Guidelines/ Regulations 2014.
"The Financial Reporting Council of Nigeria emphasizes its commitment to upholding financial reporting standards and ensuring the accuracy and reliability of financial statements."
The Council, however, warned that the action against NIMASA would serve as a reminder to all reporting entities of their responsibility to comply with prescribed standards and regulations.