TSA: Skye Bank to discuss with CBN over N4 billion fine

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Skye Bank Plc said it had commenced engagement with the Central Bank of Nigeria over the N4 billion fine imposed on it for concealing funds belonging to Ministries, Departments and Agencies (MDAs) in contravention of the directive on Treasury Single Account (TSA).

In a notification to the Nigerian Stock Exchange (NSE) dated November 9, 2015 which was jointly signed by the Group Managing Director of Skye Bank, Mr. Timothy Oguntayo, and Company Secretary, Abimbola Izu, the bank said the fine imposed by the apex bank was misdirected since it did not conceal any information on it accounts.

According to the statement, 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.

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 exempting it from the treasury single account (TSA) operations.

We 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 explained.

Skye Bank told the NSE that it had commenced engagement with the apex bank with a view to bringing the issues to the attention of the banking sector regulator and seeking a review of the penalty.

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