ICAN and legacy of service

The Institute of Chartered Accountants of Nigeria (ICAN) will at the end of this month hold its annual conference in Abuja, the nation’s capital, with the theme “Building on a Legacy of Service”. The lead paper will focus on “Repositioning Nigeria for sustainable development: From rhetoric to performance”, while other plenary session papers will dwell on “Achieving Nigeria of our dream: The responsibility of professional accountants”, “Infrastructure technology and human capital: Powering the engine of enterprise”, among others.

While we join millions of Nigerians in congratulating ICAN, which is also marking its 50 years of existence, on the auspicious moment, we also urge the professional body to use the opportunity to take a retrospective look on its activities and their impact on the polity over the years. This is with particular reference to recent happenings in some sectors of the economy, like the financial services industry and the nation’s capital market.

The banking sector, for instance, had its fair share of the raw deal in the early 1990s and between 2007 and 2009, leading to liquidation of some banks. So also was the colossal loss by investors at the nation’s capital market as a result of the banking crisis as well as bankruptcy of some of the quoted companies.

One major concern in the whole development was how institutions adjudged to be healthy with credible financial statements audited by accountants could become insolvent few months later. The episode, which affected majority of Nigerian and foreign investors, seemed to have raised some cloud of doubt on the kind of legacy ICAN is bequeathing to the country.

A legacy could be seen as a gift from an institution that would enable the country or corporate and individual bodies to continue the work and give children and even those yet unborn a voice for years to come. It could also be seen as a way of assisting future generations to achieve their full potential.

But the experiences of some investors in the recent past suggest the contrary. If some companies that were given clean bill of health would later become insolvent with attendant losses on the part of investors, it certainly leaves a sour taste in the mouth and may continue to be a sad reminder of the past contributions of ICAN to investment decision making.

ICAN should, therefore, seize the opportunity of this conference to reflect on its past so as to chart a new course where issues would have to be considered dispassionately before a verdict is passed. At the same time, accountability and responsibility should be their watchword.

More importantly, there is need for self-appraisal and adherence to international best practices so as to engender confidence in the public. We believe that it is only by so doing that ICAN can truly earn the confidence of the investing public and, ultimately, bequeath an enduring legacy.