Members of the Institute of Chartered Accountants of Nigeria (ICAN) convicted for offences are to pay fines up to N500,000.00 in a new amendment proposed to the ICAN Act by the Senate.
A bill seeking to amend the 59-year-old Act, which came into existence in 1965, passed second reading on Wednesday in Abuja.
One of the key proposals is the increase in fines payable for indictment or conviction from N100 to N500,000.00.
The bill was sponsored by the Chairman, Senate Committee on Appropriation, Sen. Adeola Olamilekan, who told his colleagues that the law was overdue for a review.
ICAN sets standards and regulates the practice of Accountancy in Nigeria by its members.
Olamilekan said the Act, as of today, hampered the work of members, adding that the amendments were meant to bring operations in tandem with current realities.
Olamilekan spoke more, “A total of 26 amendments/insertions are contained in the proposed amendment of the Act affecting sections and subsections of the Act as well as the Schedules of the Act as set forth below with rationale to guide this debate and allow its passage for second reading.
“There is a need to situate accounting practice to encompass developments since 1965 and to bring the practice to what obtains in other jurisdictions, hence the need to amend Section 1,14, 19 and insert a new section 15.
“All the sections deal with issues of accounting practice and all areas that a chartered accountant is entitled to practice under the Act.
“Corporate governance of modern professional accountancy organisations has evolved, hence the need to amend parts of Sections 2, 3, and 6 and insert new Sections 24 to 26.
“For instance, Section 3 of the Act is proposed for amendment because the Council of ICAN started with a twenty-member structure in 1965 when membership was just 250.
“The number was increased to twenty-five subsequently in accordance with the provisions of the Act. With membership strength of over 53,000 today, the need to increase the membership of the Council to 36 has become compelling.
“Additionally, the amendment aims to strengthen ICAN’s collaboration with other professional bodies and regulatory authorities, both at home and abroad.”
He explained further that the collaborations would promote synergy, exchange of ideas, and the harmonisation of standards to ensure that the Nigerian chartered accountant remained in competition with his peers elsewhere.
The lawmaker also talked about strengthening the capacity of the institute to effectively discharge its regulatory mandate.
He added, “This has necessitated the need to amend sections 7, 8,11,12, 16, 18, 20 and 21.
“A glaring example of amendment is Section 18(5). In the 59-year-old Act, a proven infraction on summary conviction of any of the offences attracts a paltry N100 fine while a conviction on indictment attracts only a fine of N1,000”.
Olamilekan stated, “You will agree with me that these sanctions for offenses that could lead to loss of millions or billions of naira, is not a deterrent to malpractices.”
“These amendments collectively aim to strengthen the legislative framework, expand the Institute’s structure, and enhance regulatory powers and professional integrity within the accountancy profession as in other jurisdictions of the world and global best practice.”
The new proposal raised the fines to N500,000, which Olamilekan said would serve as a deterrent.
ALSO READ THESE TOP STORIES FROM TheWitness
