Metro 6 Provisions Of FRC Regulation That May ‘Force’ Other Nigerian Pastors To Step Down

[ProfRem]

The effects of the new codes of corporate governance issued by the Financial Reporting Council (FRC) are beginning to manifest on Nigerian Churches although the council has said that Orthodox and Mosques have adjusted to the new policy while Pentecostal churches are still adamant.

FRC issued two of the codes on Monday 17 October after conclusion of works on it by the Steering Committee on Corporate Governance Codes that drafted it. The committee comprises of representatives of regulatory bodies in the country and others drafted to it.

The two codes, the private sector codes and the Not for Profit organisations were released after long a delay by litigations that stall its issuance and implementation. The third, the public sector codes await the approval of the Federal Executive Council (FEC) for it to come into effect.

For Non-Profit organisation such as religious bodies and others are now to prepare accounts for their businesses and submit to government agencies.

A quick checked into the 29-page document by Nigerian Bulletin on Section 9 of the Not-For-Profit Organisations Governance Code 2016 shows that;

1. The Founder or Leader of a NFPO occupies a special position in the Organisation and is committed to the success and longevity of the NFPO. Accordingly, a Founder or Leader should not take on too many responsibilities in the organisation or have an indefinite term in the running of the organisation.

2. Where for any reason, a Founder or Leader of NFPO also occupies any of the three governance positions of Chairmanship of the Board of Trustees, the Governing Board or Council, and the Headship of the Executive Management (or their governance equivalents), the following provisions shall apply before the end of the organization’s financial year in which this Code takes effect.

3. The Founder or Leader shall cease to occupy these three governance positions simultaneously. This is to ensure the separation of powers and avoid possible concentration of powers in one individual.

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4. The Founder or Leader may however choose – subject to the agreement of the organization’s apex authority as expressed in the Annual General Assembly, Annual Meeting, Annual Stakeholder Engagement, Annual Conference, Annual Synod, Annual Fellowship Assembly or their equivalents – only one of these three governance positions subject to his current tenure. This is to ensure a clear division of responsibilities at the head of the organization between the running of the governing body and the executive responsibility for the management and fulfilment of the organization’s mission.

5. Where the Founder or Leader has occupied all or any of these three governance positions for more than twenty years, or is aged seventy years or above, the choice in section 9.2.2 above should only relate to the Board of Trustees as in section 9.4(c) below, except the constitution of the organisation otherwise provides.

6. In the case of religious or cultural organisations, nothing in this code is intended to change the spiritual leadership and responsibilities of Founders, General Overseers, Pastors, Imams and Muslim Clerics, Presidents, Bishops, Apostles, Prophets, etc. which are distinguishable from purely corporate governance and management responsibilities and accountabilities of the entities.

 

[dammylas]

Please can someone explain to me what this code of corporate governance is really driving at. I quite understand it, but what is it really driving at? What is the aim of the code?

 

[ProfRem]

Basically, to drive home accountability and seek prudent in Not-For-Profit organization which includes Churches, Mosques, Homes, et al...

The law stipulates that structurally, General Overseers or owners of NFPO can not hands over power to any member of their family.

Financial statements of NPFO should be made public.

And among others

 

[dammylas]

I agree with what you said, and even with the payment of taxes but FRCN should have exempted the church when it stipulated a maximum period of 20 years for all heads of registered organisation. The government has no business with who heads the church and how long he remains the head. To me, i dont think there is any correlation between heads of churches and the federal government. Before the law was brought in, they ought to have checked the consequences that may likely occur. Laws like this creates problem in the society. Obazee just wanted to cause a very serious havoc and now it has backfired on him.

 

[curator]

I agree with what you said, and even with the payment of taxes but FRCN should have exempted the church when it stipulated a maximum period of 20 years for all heads of registered organisation. The government has no business with who heads the church and how long he remains the head. To me, i dont think there is any correlation between heads of churches and the federal government. Before the law was brought in, they ought to have checked the consequences that may likely occur. Laws like this creates problem in the society. Obazee just wanted to cause a very serious havoc and now it has backfired on him.

He did not create the law, he was there to enforce it, how is that a crime? He has lost his job for doing his job! If the first casualty was TB Joshua, I am sure RCCG members will be happy.

The churches take a lot of money from poor suffering Nigerians and translate this into a lavish lifestyle for the few. It is important that many of the excesses are address. Since it does not seem that the ogas at the top want to address the issue, who is there to protect the poor as from people touting ticket to heaven.