By Michael EBOH
Transnational Corporation of Nigeria (Transcorp) Plc has raised alarm over irregularities in the accounts of Nigerian Telecommunications Limited (NITEL) from the year 2003 to 2005.
Transcorp, according to a notice presented to the Nigerian Stock Exchange (NSE), which was subsequently made available to the investing community, said that NITEL has not maintained proper accounts for three years prior to its acquisition by Transcorp.
Transcorp said that this development is responsible for the delay in the release of its 2009 financial statements to the regulatory authorities.
The notice presented to operators in the capital market by the NSE, reads, â€œThe 2009 audited account is delayed and the company has explained that this is because the requirements of the Companies and Allied Matters Act (CAMA), required it to consolidate the audited financial statements of NITEL for the period it was one of its subsidiaries ( that is, 2006, 2007, 2008 and 2009).
â€œTranscorp said efforts to complete the audit of NITEL failed, as NITEL had not maintained proper books for three years prior to our acquisition of the company.
â€œThis has caused delay in producing the audited accounts and consequently resulting to non_compliance.â€
However, Transcorp informed that NSE that it is currently working with its external auditors to complete the audits for the period and also conduct its Annual General Meeting.
It noted that the accounts will be forwarded to the NSE and other rergulatory authorities once it is completed.