Skye Bank Plc wishes to notify that it received a letter reference no. EVD/GOV/CON/CMB/14/057 dated November 6, 2015 from CBN where in CBN imposed a penalty of N4bn on the Bank for failing to render appropriate returns on some MDA moneys as required by the CBNs’ communication dated October 14, 2015.

We wish to provide clarification that the Bank did not at any time conceal any information from the CBN as adjudged in its letter.

The following will help put more clarity on the mix-up leading up to regrettable event earlier referred to:

1. The sum of N40bn for which the Bank was penalised consists of various NNPC account balances, NNPC Pension Funds Accounts, and National Assembly Legislative Aides account balances.

2. On 2nd October 2015, CBN Management held a meeting with all banks’ CEO. It was resolved at the meeting that the CBN will debit the accounts of all banks for the deposits of FGN Ministers, Departments and Agencies (MDAs).

3. On October 7, 2015, the Bank rendered returns on all remitted and unremitted amounts to the CBN, including the balances in the above accounts.

4. On October 9, 2015 a bank receive a communication from the NNPC forwarding a letter from the accountant general of the federation on thee treatment of NNPC funds. By the communication, the bank was advised that at 18 business day window had been granted by the vice-president within which a plan for the orderly withdrawal of NNPC funds would be implemented. In rendering the returns requested by the CBN via its directive of October 14 ,2015 the bank relied on the letter from of the office of the accountant general of the federation as advised by the NNPC , and backed out the NNPC monies from those that were required for the immediate implication of the TSA arrangement.

5. The bank however continued to render daily returns of all MDAs moneys in its custody to the CBN, including those whose status under the TSA was not yet cleared. We continue to render all due returns daily.

6. The forgoing shows that the bank did not at any time conceal information from the CBN in relation to the amounts in question.

It is also important to note that a significant portion of the moneys for which the penalty was applied are NNPC pension funds and National Assembly Legislative Aides account balances.

These organs have since been confirmed by the CBN that they are not Federal Government Agencies and amount erroneously transferred to the CBN on them by some banks have been refunded.

We wish to ensure you that the Bank is responsible and law abiding financial institutions that places premium on compliance with legal and regulatory requirements.

The Bank has commenced engagement with the CBN with a view to bringing these issues to their attention and seeking a review of the penalty impose.