Ousted CBN Governor Sanusi Turns Down FRC Invitation, Citing Bias, Absence Of Statutory Power, and Violation Of Rule of Law

Ousted CBN Governor, Sanusi Lamido Sanusi

Mallam Sanusi Lamido Sanusi, the suspended Governor of the Central Bank of Nigeria (CBN), has declined the invitation of the Financial Reporting Council of Nigeria (FRC) to appear before it, citing bias, breach of the rules of natural justice, absence of statutory power, violation of the rule of law, and conduct prejudicial to good public administration and the special position of the CBN. 

In a letter to the Executive Secretary/Chief Executive Officer of FRC, his lawyer, Kola Awodein, recalled that following a letter of invitation from the FRC dated 14 March, Mr. Sanusi responded on 16 March seeking clarity on the specific activities of the CBN sought to be investigated, to which he was yet to receive a response.

“Our Client was thus surprised to see the FRC’s advertorial on page 51 of ThisDay Newspaper and page 34 of the Punch Newspaper (as well as other newspapers) on 24 March 2014 inviting him in respect of the same subject matter,” the letter said.   “We take the view that this advertorial is in bad faith, just as it is calculated to embarrass and disparage our Client. We are also of the firm view that this advertorial is evidence of an avowed intent to act prejudicially.”

It described as appalling the fact that Mr. Sanusi was now being invited after the FRC had arrived at false and malicious conclusions in its Briefing Note dated 7 June 2013 to President Goodluck Jonathan, and that it was evident that the FRC has pre-judged what it now purports to investigate, thereby compromising the integrity of any such investigation.

“Above all, it is obvious from your enabling statute, the Financial Reporting Council of Nigeria Act 2011, in particular Sections 7, 8, 11, 25, 28, 58(2) and 62 thereof, the FRC lacks the authority and the powers to conduct the investigation it seeks to undertake,” the letter said.

“Whilst our Client is not averse to an objective investigation by an appropriate and impartial authority into the activities of the CBN during his tenure as Governor, or into his own activities as a citizen, our Client is constrained to decline the FRC’s invitation on the basis of bias, breach of the rules of natural justice, absence of statutory power, violation of the rule of law, and conduct prejudicial to good public administration and the special position of the Central Bank of Nigeria.”

Text of the letter:

The Executive Secretary/Chief Executive Officer

Financial Reporting Council of Nigeria,

Elephant Cement House (3rd Floor),

Assbifi Road, Alausa,

Ikeja, Lagos.

Dear Sir,

Re: On-going Investigation of Central bank of Nigeria – Advertorial in National Dailies

1.        We are Counsel to Mallam Sanusi Lamido Sanusi CON, Governor of the Central Bank of Nigeria (CBN), on whose behalf we write.

2.        Our Client received the letter of 14 March 2014 from the Financial Reporting Council of Nigeria (FRC), wherein he was invited to appear before the FRC to explain his involvement in the activities of the CBN between 2011 and 2012. We refer to our Client’s response of 16 March 2014 to the FRC by which he sought clarity on the specific activities of the CBN sought to be investigated, to which he is yet to receive a response.

3.        Our Client was thus surprised to see the FRC’s advertorial on page 51 of ThisDay Newspaper and page 34 of the Punch Newspaper (as well as other newspapers) on 24 March 2014 inviting him in respect of the same subject matter.  We take the view that this advertorial is in bad faith, just as it is calculated to embarrass and disparage our Client. We are also of the firm view that this advertorial is evidence of an avowed intent to act prejudicially.

4.        At all events, it is appalling that our Client is now being invited after the FRC had arrived at false and malicious conclusions in its Briefing Note dated 7 June 2013 to the President (Briefing Note). Those conclusions include:

4.1     “Incompetence or acting outside the object clause of the CBN”;

4.2     “Nonchalance”;

4.3     “Fraudulent activities”;

4.4     “Wastefulness”;

4.5     “Abuse of due process”; and

4.6     “Deliberate efforts to misrepresent facts”.

5.        In addition, you recommended to the President that His Excellency cause our Client and the Deputy Governors of the CBN to “… cease from holding office in the CBN…so that the opposition to the Federal Government does not take advantage of the information and use it to attack the government...”

6.        It is evident from the foregoing conclusions and recommendations that the FRC has pre-judged what it now purports to investigate, thereby compromising the integrity of any such investigation.

7.        Moreover, the credibility of the purported investigation is further undermined by the fact that in reaching the decisions contained in the Briefing Note, the FRC neither heard nor provided our Client with the opportunity to respond to the weighty allegations that led to the unfounded conclusions contained therein.

8.        Above all, it is obvious from your enabling statute, the Financial Reporting Council of Nigeria Act 2011, in particular Sections 7, 8, 11, 25, 28, 58(2) and 62 thereof, the FRC lacks the authority and the powers to conduct the investigation it seeks to undertake.

9.        Whilst our Client is not averse to an objective investigation by an appropriate and impartial authority into the activities of the CBN during his tenure as Governor, or into his own activities as a citizen, our Client is constrained to decline the FRC’s invitation on the basis of bias, breach of the rules of natural justice, absence of statutory power, violation of the rule of law, and conduct prejudicial to good public administration and the special position of the Central Bank of Nigeria.

Yours faithfully,

Kola Awodein SAN