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FAMAD raises alarm over falsified financial report


Vice Chairman of the board of Directors of Footwear And Accessories Manufacturing And Distribution, FAMAD, Plc, Sir Emenyonu Chima has raised alarm over what he described as falsified financial report of the company.

This came two days to the scheduled Annual General Meeting, AGM.  The alarm raised by a member of the board which has the responsibility in law to prepare the statement of account of the company further show that the crisis rocking the board of Footwear And Accessories Manufacturing And Distribution, FAMAD, Plc has worsened.

Sir Emenyonu Chima who is the Vice Chairman of the board yesterday called a press conference and publicly disowned the financial report which is to be presented to shareholders tomorrow.

Chima, a former chairman of the Export Group of the Manufacturers Association of Nigeria, MAN, at the press briefing alerted the public of the manipulation of the account told newsmen that the annual report to be presented to the shareholders of the company was falsified and consequently queried by the external auditors, Akintola Williams Deloitte.

He told newsmen that the auditors had stated in their opening remarks on the account that they were not given enough information on the accounts of the company to enable them make an informed opinion of the financial state of FAMAD.

Chima said at a time when the Financial Reporting Council, FRC, of Nigeria was looking for directors of companies who falsified their financial statements, he would not associate himself  with the report to be presented to shareholders of the company at the AGM tomorrow.

He said: “Due to the deliberate desire of the chairman, Mrs. Olutoyin Olusola Olakurin to withhold critical information that will assist the auditors to perform their duties creditably, I, Sir Emenyonu Chima here inform the public and particularly our numerous shareholders that I dissociate my person from the entire account statement of the company as presented”.

Continuing he said that the board of FAMAD did not unanimously approve the financial reports covering the period 2001-2006 as claimed by the chairman, adding “I personally wrote an audit alarm to the auditors on May 9, 2008 warning them of critical information that were concealed from them”.

He said “The Securities & Exchange Commission (SEC) had in a letter dated April 25, 2008 directed the company to submit its financial reports for five years for the scrutiny” however, “a letter signed by Mrs. Olakunri and dated May 15, 2008, blamed the delay on a fire incident which occurred in its office complex in 2000, adding that the auditors were in the process of concluding the auditing”.

According to him, “The financial reports demanded by SEC since 2008 are the ones to be presented to the shareholders of the company in the AGM tomorrow”.

It was however gathered that contrary to the chairman’s claim that the fire incident in 2000 delayed the submission of the reports, it was the lack of consensus on the board that actually prevented the submission of the reports to the regulators and the consequent inability to hold AGM for about 10 years. The company was subsequently delisted by the Nigerian Stock Exchange, NSE, for failing to meet its listing requirements which included inability to submit its financial reports to the exchange.


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