The Registrar and Chief Executive of the Chartered Institute of Treasury Management, CITM, Mr. Adedoyin Olumide says the institute is poised to stop treasury leakages in Nigeria.
He was speaking while addressing the House of Assembly Press Corps in Abuja.
He said that the function of the institution was to boost the activities of financial institutions in the country and make sure that there are no idle funds for pilfering.
” The Chartered Institute of Treasury Management seek to create a pathway toward promoting the study, the practice of properly managing the Treasury as a safeguard against fraud, misapplication/misappropriation of resources placed in the custody of fund managers in both Private and Public Sectors.
“The Institute seeks to institutionalize Preventive Mechanism by diligently encouraging the study and practice of the profession as obtained in greater economies of the world, bringing to bear best practices through research and cross fertilization of ideas from like mind Institutes and Research bodies presently available in about 54 countries of the world. This would in turn lead to building world class individuals and well-grounded professionals in the management of the Treasury,” Mr Olamide said.
He said that the concern of the institute was to make sure that the economy stabilises.
He also noted that the Treasury Single Account, TSA, that Nigeria is enjoying was a suggestion by the institute.
The register noted that despite the TSA, there are still some levels of corruption which are attributed to leakages at the back end.
He called for training of financial personnel for maximum protection of funds.
Also, he said, “in summary we could view Treasury Management as:-
a prudent and strategic approach
integrated management of an entity’s resources
having the aim of achieving optimal utilization of entrusted resources
pursuit of the realization of the most beneficial returns
ensuring continuous liquidity for the settlement of every ensuing and/or spontaneous obligations,
catching on investment opportunities
minimizing the associated risks of managing and investing in cash and near cash assets (preventive mechanism) i.e., stopping hemorrhage Guarantees continuous flow of economic benefits”.
According to him, when the operation of treasury management is allowed to impact the economy of an entity,Firms will Operate with smaller amounts of cash, Supervision and management of cash flows and its balances will be better managed and impacted.
“There would be better service from banks. Proper allocation of funds will be achieved. Fraud and embezzlement would be minimized
Risk of loss in management of investment in liquid assets will be eliminated. Firms would operate at minimum cost of funds possible within the economy of their domicile
constituted authorities and institutions in Nigeria.
The promotion, the study and practice of properly managing the treasury as a safeguard against fraud, outright embezzlement, emasculations, misappropriation/ misapplication of scarce resources placed in the care/custody of fund managers,” he noted.
Mr. Olamide also said that Treasury Management could be viewed as
a prudent and strategic approach
integrated management of an entity’s resources.
“To encourage professionalism in the field of treasury management and to conduct research into the best method and means of developing and applying the research result thereof.
“To provide opportunities for treasury managers, financial controllers, fund managers, etc to improve and enhance their technical/career skills development as professionals.
“To instill a high standard of professional ability, efficiency and effectiveness through training and retraining activities.
“To maintain professional discipline within the rank and file of practitioners and to regulate and control the practice of the profession in all ramification.
“To disseminate professional information on treasury management and other matters connected therewith”. He added.
Treasury Management Accounting has its origin in ancient time when the need arose to keep custody of the treasure and wealth of kings and emperors emerged in the 15th century to record business transactions and maintain contractual relationships and obligations. Its public recognition came from the work of Luca Pacioli published in 1494.
Hauwa Abu
