ANAN seeks legislation to protect depositors' funds

The Association of National Accountants of Nigeria has called for the enactment of necessary policies and legislation to protect depositors funds in Deposit Money Banks, Microfinance banks and Primary Mortgage Institutions.The association, in a communiqu jointly signed by its President, Maryam Ladi and its Registrar/Chief Executive, Terkaa Gemade, said the global financial crisis that arose in 2008 was largely as a result of thesub-prime bubbles and poor management of bank credits.According to ANAN, the development, which is still out of control, has eroded the confidence and capacity of the global financial system.It also expressed support for the CBNs policy of sanctioning any member of the boards of banks and other financial institutions that were found wanting or corrupt.ANAN wishes to stress the need for legislators and regulators to ensure the safety of savings and deposits in banks and in other financial institutions through enacting appropriate laws, guidelines and accounting standards, it said.Similarly, any accountant or auditor that is found to have assisted organisations in improperly whitewashing their accounts should be blacklisted, and where needed, prosecuted, it added.The communiqu recommended that all necessary legal and regulatory frameworks must be put in place to ensure that all financial institutions contribute to the growth of the real sectors of the economy, thereby motivating the growth of the countrys GDP and its capacity to generate employment.It called on all professionals and their respective recognised associations to at all times be seen as custodians and promoters of transparency, accountability, honesty, and probity in all aspects of public and private sector activities.The association reiterated the centrality of the judicial system to ensuring the proper functioning of the financial system as well as transparency and good governance.It said, In this regard, ANAN is of the view that the financial independence of the Judiciary, as enshrined in the 1999 Constitution of the Federal Republic of Nigeria, though worthwhile, is not adequate to ensure complete judicial probity.In addition, there is the need for all judges and justices to exhibit a high degree of nobility of character, courage, and fairness in their judicial assignments. This will require improving the process of appointment of judges and justices in such a way that nepotism and political interference are eliminated.
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