ABUJA – The Registrar, Institute of Capital Market Registrars, Dr David Ogogo, on Thursday identified fraudulent financial reporting as one of the major factors responsible for collapse of companies in Nigeria.
Ogogo stated this in Abuja while presenting a paper on “Corporate Governance: The Role of Stakeholders, Media and Compliance Officers” at the 2014 Journalists’ Academy organised by Securities and Exchange Commission.
He said that unreliable management and board, unusual emphasis on shareholder value, regulatory deficiencies and lack of adequate internal control mechanism were other causes of company collapse in the country.
He urged relevant regulatory agencies to ensure that organisations were annually subjected to Corporate Governance Audit (CGA) to help in preventing them from collapsing.
“The CGA should be for public quoted companies, Federal and State Ministries, Departments and Agencies and Parastatals,’’ he said.
Ogogo said that corporate governance framework encouraged efficient use of resources and required accountability on those resources.
“Its aim is to align, as nearly as possible, the interests of individuals, corporations and the society. It is concerned with holding the balance between economic and social goals.
“It is intended to increase the accountability of the company and to avert disasters before they occur,’’ he said.