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Heritage Bank, PWC, Deloitte Canvass Use Of Tech To Rescind Effects Of Covid-19, Tackle Fraud

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Heritage Bank Plc, Nigeria’s Most Innovative Banking Service provider has called on internal auditors of banks to adopt the various digital technologies to prevent fraud and annul the adverse impact of Covid-19 on the financial ecosystem.

Speaking at the just concluded 47th Quarterly Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), the MD/CEO of Heritage Bank, Ifie Sekibo disclosed that for improved banking operations and a safer financial system for stakeholders, internal auditors must be dynamic and quick to adopt various digital measures.

Raising the alarming impact of fraudulent activities in the banking sector, Sekibo quoted PricewaterhouseCoopers’ (PWC’s) Global Economic Crime and Fraud Survey 2020, revealing that the total cost of cybercrimes is worth an eye-watering $42 billion, which was cash taken straight off companies’ bottom line, whilst 13% of those who had experienced fraud said they had lost $50 million-plus.

Sekibo, who spoke on the theme, “Elevating Internal Audit’s Role in the Face of Emerging Risks and Opportunities” organized virtually and hosted by the Heritage Bank, urged, “While it was sufficient for yesterday’s auditor to understand regular and routine banking practices such as credit, treasury, etc in his traditional assurance role, for him to be relevant in harnessing the opportunities in today’s business world, he must become versed in cybersecurity, artificial intelligence, data analytics, fraud management, regulatory pronouncements, forensics, etc and having equipped himself, present balanced, objective audit reports to Executive Management while striking the right balance between the assurance and consulting responsibilities.”

In her keynote address, titled, “Elevating Internal Audit Role In The Face Of Emerging Risks and Opportunities,” Ibukun Beecroft, Partner Risk Advisory at Deloitte, noted that the banking industry in Nigeria today has adopted various digital measures to keep the business running and delivering services to the customers but there was a need for Internal Audit (IA) positioned to provide the required assurance and consulting services in the face of the changes and attendant risk, particularly increased cyber-risks.

Quoting the 2018 Financial Stability Report by the Central Bank of Nigeria, she stated that Banks recorded 25,029 confirmed cases of fraud and this resulted in a loss of N2.21 billion. More than 90% of fraud cases in 2018 were perpetrated via technologically driven channels.

“As Internal Auditors, the knowledge of the technology would enable us to identify gaps in our core banking applications and other applications and provide relevant recommendations to eliminating loopholes that may serve as an avenue for potential fraud.

She, however, advised auditors on the need to focus on advanced technologies and risk management operations as reflected around the Three Lines of Defense (3LOD) churned out by the Institute of Internal Auditors, which create opportunities for IA and its future role.

Beecroft warned that the ever-changing landscape and evolving risks in the banking industry could render the current internal audit plan obsolete.

According to her, internal auditors should reprioritize the audit plan as soon as possible to provide assurance over the most consequential risks while being cognisant of the impact on operations.

“To take advantage of these changes and disruptions, auditors need to rethink their role by adapting to and embracing change, enabling the IA function to become more agile, nimble, and forward-looking, thus driving change through the 3LOD,” Beecroft stated.

Yetunde Oladeji, Director Internal Audit Services at PricewaterhouseCoopers Limited (PWC), who spoke on the theme, “Elevating IA’s role to meet today’s emerging risks,” advised that the banking sector should be dynamic, prioritize digitization and flexible workforce strategies as these would determine its ability to adapt to rapidly changing circumstances to survive and thrive.

BIG STORY

Former Senate Spokesperson Ayogu Eze Dies At 66

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Ayogu Eze, a former spokesperson for the Senate, passed away at the age of 66.

Eze, the senator from Enugu North Senatorial District from 2007 to 2015, died on Thursday in a hospital in Abuja following an undisclosed illness.

In May 2023, the Senate confirmed Eze as a federal Commissioner for Revenue Mobilisation Allocation and Fiscal Commission. Eze is also among the founding members of the Peoples Democratic Party.

In his years at the Senate, he also served as the chairman of the Senate Committee of Works and a member of committees on Constitutional Amendment, Police Affairs, National Planning, Marine Transport and Federal Character & Inter-Government Affairs.

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BIG STORY

Lagos Workers Now Earn N70,000 As Minimum Wage Since January — Sanwo-Olu

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The executive Governor of Lagos State, Babajide Sanwo-Olu, has disclosed that workers have been enjoying an additional N35,000 wage allowance since January.

He also disclosed that a new minimum wage programme will shortly be implemented by the state administration.

According to the governor, since the start of the year, people who were previously making the minimum wage of N35,000 or more now receive salaries of N70,000 or more.

“The civil servant and all public officers in Lagos know that since January, we have continued to pay the wage allowance of a minimum of N35,000 over and above what they were earning before.

“What this means is that people that are earning a minimum of N35,000 or more before are now earning over N70,00. That is what they have been enjoying since January.

“So it is important for people to know that we make these things very clear that this government has doubled up to ensure that at this difficult time, it has not left the citizens on their own,” Sanwo-Olu said at a state function on Thursday.

The governor while giving an update on the intervention the state embarked on to ameliorate the current economic hardship,  said his administration will distribute food items to 500,000 households in the state through unions and local governments.

Speaking on the ‘Ounje Eko’ initiative, where food items are sold at discounted prices, the governor said, “We created 59 makeshift markets outside of the regular markets out of our 57 local government and local council development areas and made it Sunday-Sunday market.”

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BIG STORY

How Binance Executive Tigran Gambaryan Planned Prison Escape, Applied For New US Passport

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Tigran Gambaryan, the detained Binance Holdings Limited executive, has made attempt to escape from Kuje Correctional Facility.

According to The Punch, Mr Gambaryan who is currently remanded in Kuje Correctional Facility, applied for a new United States of America passport, under the pretence that his seized passport was missing.

EFCC sources, on Wednesday, under anonymity said that the Armenian-born Binance executive, Gambaryan who has both American and Armenian passports, told the US Embassy in Abuja that he lost his passport which is currently being held by the anti-graft Agency.

Following the development, the EFCC has urged the Federal High Court sitting in Abuja to disregard Gambaryan’s bail application, while noting that the Armenian-American could flee from Nigeria like his Kenyan-British colleague, Nadeem Anjarwalla who fled to Kenya.

A source, privy to the investigations, revealed that “The second Binance executive, Tigran Gambaryan, who is currently remanded in Kuje prison, has planned to escape from the facility. He applied to the US embassy in Abuja to issue him a new Visa while lying that he lost his passport which was seized by the EFCC.”

Another source, under anonymity, added that “Gambaryan could have escaped from Kuje if not for the fact that the US embassy flagged his request for a new passport. Fortunately, the US embassy immediately reached out to the EFFC, and the embassy was informed that he’s a criminal suspect whose case is currently in court for alleged money laundering – concealing the source of the $35,400, 000 generated as revenue by Binance in Nigeria knowing that the funds constituted proceeds of unlawful activity.”

Meanwhile, the EFCC had on Tuesday, urged Justice Emeka Nwite of the Federal High Court Abuja to deny Gambaryan’s bail application.

The anti-graft agency said it was too risky to admit the foreigner to bail, noting the escape of his co-defendant, Nadeem Anjarwalla, from the custody of the National Security Adviser and his escape to Kenya.

Besides, the prosecuting counsel for the EFCC, Ekele Iheanacho, told the court that the anti-graft agency uncovered an alleged plot by Gambaryan to obtain a new passport to facilitate his escape from Nigeria after the EFCC had seized his passport.

Gambaryan, his fleeing colleague, Anjarwalla, and Binance Holdings Limited are being prosecuted by the EFCC on money laundering charges.

The anti-graft agency accused them of concealing the source of the $35,400, 000 generated as revenue by Binance in Nigeria knowing that the funds constituted proceeds of unlawful activity.

Opposing Gambaryan’s bail application on Tuesday, the EFCC prosecutor said, “There was an attempt by this defendant to procure another travelling document even when he was aware that his passport was in the custody of the state. He pretended as if the said passport was stolen.”

Iheanacho told the court that within the same period that Anjarwalla fled the custody, Gambaryan also allegedly made moves to escape from custody and flee the country but was intercepted by the operatives of the commission.

“This court will be taking a grave risk to grant the defendant bail. This is also because he has no attachment to any community in Nigeria.

“The experience we have had with the man who escaped to Kenya while his United Kingdom passport is in Nigeria will certainly repeat itself if this defendant is granted bail.

“The 1st defendant (Binance) is operating virtually. The only thing we have to hold on to is this defendant. So, we pray My Lord to refuse bail to the defendant.”

Iheanacho said with the intelligence information at the EFCC’s disposal it was not safe to release the foreigner on bail.

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