PROPOSAL FOR APPOINTMENT AS CONSULTANTS

FOR THE RECOVERY OF EXCESS BANK CHARGES

ON PAST TRANSACTIONS

TO

FEMAB PROPERTIES
LIMITED

SUBMITTED BY:

BALOGUN BADEJO CONSULTING LIMITED

[HUMAN RESOURCE & MANAGEMENT CONSULTANTS]

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 FEMAB PROPERTIES LIMITED

PROPOSAL
FOR APPOINTMENT AS CONSULTANTS FOR THE
RECOVERY OF EXCESS BANK CHARGES ON PAST
TRANSACTIONS

CONTENTS PAGE

1.0 Brief introduction of our Company 2

2.0 Our Offices and Contact Information 11

3.0 Similar and Other assignments 12

4.0 Our understanding of the assignment 13

5.0 Brief Methodology proposed for

performing the assignment 15

6.0 Proposed Team Structure for performing the

Assignment 18

1.0 BRIEF INTRODUCTION OF OUR COMPANY

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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1.1 ESTABLISHMENT
Our Company was incorporated on the 14 th of April, 1975 as the Consultancy arm of BBC
Balogun Badejo & Co. (now BBC Professionals) under the name of BABCO Consultants Ltd
(Rc. 14776) which was changed lately to Balogun Badejo Consulting Limited, having
gone through BDO Consulting Ltd and BBc Consulting Ltd respectively.

Our Mission
“Recognising and addressing from time to time pressing issues encountered in
industry, business and governance by enlisting the best crop of professionals
available in the country in achieving utmost efficiency and results”.

Our Core Values

At Balogun Badejo Consulting Limited, we place emphasis on Tolerance (T), Integrity (I),
Competence (C), and Knowledge (K).

We believe that by creating value for our clients and providing significant and measurable
returns on investment, we build long term relationships and pride ourselves on our high level
of customer satisfaction. This is the reason why our clients see us as the final destination for
their management consultancy needs.

1.2 INTERNATIONAL AFFILIATION

We are affiliated with PrimeGlobal which is a global network of accounting and
consulting firms with offices in over ninety (90) countries located in all the continents of
the world. The essence of all these is that we have expertise both locally and
internationally to meet the demands of our profession.

Our international office in MIAMI, FLORIDA (USA) together with any of PrimeGlobal
offices in the world are available to join us in carrying out any exercise should their services
be required.

The World Headquarters of PrimeGlobal is located at:

9200 South Dadeland Boulevard

Suite 510 Miami
Florida 33156
USA

1.4 COMMITMENT
Our Company is committed to:
Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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  excellent quality and timely delivery of our service.
 conscientious maintenance and improvement of our place in the profession.
 contribution to the development of our community and profession in manpower
development, technical expertise, meaningful and stable employment in a healthy
environment whilst simultaneously discharging our social responsibilities.
 dissemination of technical information towards regular communication to our
staff, clients and the public.

1.5 REGISTRATION WITH RELEVANT AUTHORITIES

Our firm is registered with the following authorities amongst others:
 The Institute of Chartered Accountants of Nigeria (ICAN)
 Public Practice Section of ICAN (PPS)
 Corporate Affairs Commission (CAC)
 Securities & Exchange Commission (SEC)
 Office of the Auditor-General of the Federation (AGF)
 Office of the Accountant-General of the Federation (AGF)
 Some Offices of the Auditor-General of the States
 Chartered Institute of Taxation of Nigeria (CITN)
 Bureau of Public Enterprises (BPE)
 PrimeGlobal global network of accounting and consulting firms
 Financial Reporting Council Of Nigeria (FRCN) - Partners

1.6 AVAILABILITY OF APPROPRIATE SKILLS

We have adequate manpower that can handle any assignment in the following categories:

1.8 KEY DRIVERS OF OUR PRACTICE

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 DIRECTORS OF BALOGUN BADEJO CONSULTING LIMITED

11 22

33 44
55

1. J O Obogwu - Chairman

2. E U Itodo - Director

3. A M Adetuyi - Director

4. G C Egwuenu (Mrs.) - Director

5. O. F. Moyegun - Chief Executive Officer

1.8 KEY DRIVERS OF OUR COMPANY (cont’d)

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 Balogun Badejo Consulting Limited is well known for Efficiency, Integrity and
Professionalism when it comes to the practice and dealing with our clients. We take pride
in the competence and experience of the directors who drive the firm. We present a brief
profile of our Directors.

(1)

JAMES O. OBOGWU
Chairman

He attended St Paul’s Grammar School, Ebu and University of Benin, Benin City, where he
bagged a Master in Business Administration (MBA). Employed as a Trainee and rose
through the ranks to become a Partner on 1 April 2005. JOO became the firm’s Managing
Partner on 1 April, 2013.
Mr. Obogwu is a Fellow of both the Institute of Chartered Accountants of Nigeria (ICAN)
and the Chartered Institute of Taxation of Nigeria (CITN).

JOO as he is fondly called was the firm’s Deputy Managing Partner up to 31 March, 2013. He
is the Editor-In-Chief of our in-house journal, TICK Magazine.
He is currently:

- A member Practice Monitoring Review Committee of the Institute of Chartered

Accountants of Nigeria (ICAN)
- IFRS Paper Presenter.
- A member of Practice Monitoring Committee of Chartered Institute of Taxation of
Nigeria (CITN)
- Vice Chairman of Taxation Standard Board of Chartered Institute of Taxation of Nigeria
(CITN)
- Chairman of Sub-Editorial Board Committee of Taxation Standard Board of the
Chartered Institute of Taxation of Nigeria (CITN).
- A member of Forum of Firms of the Institute of Chartered Accountants of Nigeria.

1.8 KEY DRIVERS OF OUR PRACTICE (cont’d)

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 (2)

EVERESTUS U. ITODO
Director
Everest, as he is popularly called by friends hails from Amalla in Udenu LGA of Enugu state
of Nigeria. He attended Ifruoka Primary School Amalla–Udenu LGA in Enugu State,
Government Day Secondary School Kakuri, Kaduna and St. Theresas’ College, Nsukka.

He obtained B.Sc. in Applied Accounting from Oxford Brookes University, UK and Master of
Science in Management (M.Sc. Management) from University of Lagos, Akoka, Nigeria.

EUI is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Association
of Chartered Certified Accountants (ACCA), UK and Chartered Institute of Taxation of
Nigeria (CITN).

Before joining the Company in January 2006, he had worked with Mu’Allahyidi & Co,
(Chartered Accountants), Supertex Limited, and Union Adhesive & Chemical Company
Limited, all in Kaduna. He rose to the position of Audit Manager in the firm on 1 April, 2008,
was admitted a Partner on the 40th Anniversary of the firm on 1 April, 2009 and became the
firm’s Deputy Managing Partner on 1 April, 2013.

He is currently:
 The Finance Partner of the Company;
 Chairman of the Firm’s Technical, Research and Training Committee; and
 A Practice Monitoring Reviewer of the Institute of Chartered Accountants of Nigeria
(ICAN).
 A member of forum of firms of the Institute of Chartered Accountants of Nigeria.

1.8 KEY DRIVERS OF OUR PRACTICE (cont’d)

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 (3)

AYODELE M. ADETUYI
Director
Mr. Adetuyi attended Egan High School Ojo, Lagos and Olabisi Onabanjo University, Ago
Iwoye, Ogun State. AMA obtained Master in Business Administration (MBA, Finance) from
University of Lagos, Akoka, Nigeria.

He is a member of The Institute of Chartered Accountants of Nigeria (ICAN) and The

Chartered Institute of Taxation of Nigeria (CITN).

Before joining BBc in 2006, he had worked with A A Consultants; Royal Value International
Limited and Oladeji Olagunju & Co (Chartered Accountants), where he rose to the position of
an Audit Manager.

Mr. Adetuyi also has the passion of impacting knowledge, and currently serves as Director of
Studies at Foresight Professional Institute, Lagos, an ICAN Study Centre. He is a member of
Ikoyi Club.

AMA who was admitted a Partner on 1 October, 2010 is currently the Tax Partner, IFRS
Paper Presenter and Chairman of the firm’s International Financial Reporting Standard
(IFRS) implementation Team.

1.9 KEY DRIVERS OF OUR PRACTICE (cont’d)

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 (4)

GLORIA C. EGWUENU (Mrs)

Director

Mrs. Egwuenu attended Ibru College Agbarha Otor, Delta State and Edo State University,
Ekpoma, Edo State, where she studied Accountancy. Also, she studied at University of Lagos,
Akoka where she obtained Master of Science in Management (M.Sc. Management).

Mrs. Egwuenu who is a member of the Institute of Chartered Accountants of Nigeria (ICAN)
is an IFRS Paper Presenter and the Vice Chairman of the firm’s IFRS implementation team.

She had worked with Omega Bank Plc (now Enterprise Bank Limited), Shonubi Abah & CO
(Chartered Accountants) and Bytex Nigeria Limited before joining Balogun Badejo & Co.

GCE as she is popularly called became a partner in the firm on 1 April, 2011 and she is
currently the Administrative Director.

1.8 KEY DRIVERS OF OUR PRACTICE (cont’d)

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 (5)

OLUFEMI MOYEGUN
Chief Executive Officer

Mr Olufemi Moyegun is a graduate of Agricultural Economics from Obafemi Awolowo

University, Ile-Ife, Osun State. Before joining Balogun Badejo Consulting Limited, he had a
stint with the Tribune Newspapers as Advert Executive.

He was the head Compliance Consulting and Training Department of Dun & Bradstreet
[D &B], one of the biggest Business Information & Credit Reporting companies in the world.

Mr. Moyegun had also worked with Credit Chex Consumer Services Limited as the Vice-
President.

He joined Balogun Badejo Consulting Limited as Chief Operating Officer and in April 2016 he
was elevated to the position of Chief Executive Officer.

He has attended courses both locally and internationally.

He is married with children.

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 1.9 DIRECTORS AND SENIOR TECHNICAL STAFF

1.9.1 Directors: {full time - 4}

NAME QUALIFICATIONS EXPERIENCE

1. J O Obogwu MBA, FCA, FCTI 28 years
2. E U Itodo B.Sc., M.Sc. ACCA, FCA, ACTI 21 years
3. A M Adetuyi B.Sc., MBA, FCA, ACTI 17 years
4. G C Egwuenu (Mrs.) B.Sc., M.Sc., FCA 17 years

1.9.2 Consultants
5. P. O. Oluwi FCCA, FCA, FCTI, 45 years
6. Dr. J O Asaolu FCA, FCTI, MNIM, Ph.D 44 years
7. M O Oladotun FCCA, FCA, FCTI, FCIPM, FWAIMC 44 years
8. F C Obi FCA, ACTI 42 years

1.9.3 Chief Executive Officer:

9. O F Moyegun B. Agric, PDCA 19 years

1.9.4 Senior Technical staff:

10. O O Agbeje HND, ACA 13 years
11. M O Akinola MBA, HND, ACA 13 years
12. C I Onah HND, ACA 12 years
13. O M Lesi B.Sc., ACA 6 years
14. C M Ugwu (Mrs.) B.Sc., ACA 9 years
15. V O Opajobi (Miss) B.Ed., ACS 14 years
16. F O Bolade LL.M, LL.B, ACTI 7 years

1.11 QUALIFYING SENIORS AND TRAINEES

At varying degrees of qualification and experience – over 40 in number.

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 2.0 OUR OFFICES AND CONTACT INFORMATION

2.1 OFFICES IN NIGERIA

Our firm has offices in the following locations in Nigeria:

Abuja Ibadan
Akure Kaduna
Benin City LAGOS - Headquarters

2.2 OUR CONTACT OFFICES AND OFFICERS

Headquarters - Lagos
Charter House
7 McNeil Road
Sabo, Yaba
Lagos
G P O Box 3260, Lagos
Tel: +234 (01) 8112731722
Website: www.bbccharter.com
Email: consulting@bbccharter.com

Headquarters contact officers:

Name Designation GSM Email

J O Obogwu Chairman 08023139061 obogwu@bbccharter.com

joobogwu@yahoo.com

Olufemi Moyegun CEO 08162555945 ofmoyegun@bbccharter.com

olufemimoyegun@gmail.com
Abuja office
Suit 24 Dee Awwal Plaza
2nd Floor, Plot 2044, Michael Okpara Street
P O Box 8601
Wuse, Zone 5, Abuja

Abuja office contact officers:

Name Designation GSM Email

C I Onah Senior 08063166927 chris.ibe65@yahoo.com

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 3.0 SIMILAR AND OTHER
ASSIGNMENTS

We have relevant cognate experience and a strong record of value-added service to our
esteemed clients which we have been doing for over four (4) decades of our existence.

3.1 SIMILAR ASSIGNMENTS

Some of the Recovery of Excess Bank Charges Work that we carried out or currently being
engaged that are similar to the proposed assignment are as stated below:

 Metro Mortgages Limited

 Metropolitan Investments Limited

 Thomas Wyatt Nigeria Plc

 Coates Brothers (West Africa) Limited

 Eldorado Construction (Nigeria) Limited

 Enertek Bendix Limited

 Man Mountain & Company Limited

 Odengene Air Shuttle Services Limited

4.0 OUR UNDERSTANDING OF THE ASSIGNMENT

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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4.1 Introduction
Femab Properties Limited in its drive to be accountable to its stakeholders is desirous of
engaging a reputable Consulting firm to recover its excess bank charges and we are therefore
expressing our interest for appointment as Consultants to the Company.

4.2 Brief History of FEMAB PROPERTIES LIMITED

Femab Properties Limited is a Limited Liability Company incorporated under the Nigerian
Companies and Allied Matters Act, Laws of the Federation of Nigeria (LFN) 1990 (as amended)
with RC No: 395118.
Femab is engaged in all aspects of Real Estate Consultancy and Development including Civil
Engineering Construction, Property Management, Property Sales and lettings and Estate
Development.
Femab commenced operations in 1994 as an enterprise under the name Femab Global ventures.
The business of the enterprise grew very quickly and very large and to accommodate its success,
Femab Properties Limited (Femab) was incorporated as a Limited Liability Company in the year
2000.
To ensure its continued success as both a global and a national brand, Femab has continued to
expand its operations and personnel both in Nigeria and off the shores of Nigeria.
Currently, Femab enjoys business relationships with the following companies either as
subsidiaries, affiliates or Joint Venture Partners.

1. Hongyang Dredging and Seaport Construction Limited

2. Oriental Femab Mining

3. Femab properties limited

4. Shelter First and Associate

5. SFA Logistics

6. Zibo Femab

7. Crystal blocks
With the success of these collaborations, Femab continues to seal its position not just as a
Nigerian brand, but as a global company with an international reach covering Europe, United
States of America, Canada and China.

4.3 Our duties as Consultants to Femab Properties Limited

Our duties shall include but not limited to:
Review of unapproved and unagreed interest rates;
Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 Review of Commission on Turnover (COT);
Review of Excess/Default Charge;
Review of unauthorised fees on facilities;
Review of inappropriate management of BAs and CPs;
Review of Foreign Exchange Sales, Bidding and Rates;
Review of backdated/postdated value/effective dates;
Review of inclusion of unknown cheques;
Review of Undue VAT charges;
Reconciliation of Bank Statements/Company Cash Book.

5.0 BRIEF METHODOLOGY PROPOSED FOR

PERFORMING THE ASSIGNMENT

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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When appointed as your consultants on this project, summary of the methodologies to be
employed are as detailed below:

5.1 Preliminaries:
Upon our appointment as Consultants, we shall carry out the following:

 Forward our Letter of Acceptance signifying our acceptance of the appointment

 Issue Letter of Engagement which shall spell out the terms of engagement
 Hold meeting with the members of the Board or Top officials (if necessary)
 Hold meetings with the Management Team to discuss issues concerning the project
 Issue our Audit Planning Memorandum

Consequently, we shall obtain necessary background information and documentation for the
purpose of the assignment.

Such background information and documentation shall include but not limited to:
1. Femab Properties Limited’s Profile which will contain amongst others: History,
Establishment, Head Office, Other Offices, Board, officials, Top Management staff, etc
2. Bank Statements from all the Banks covering the period under review.

5.2 Work Plan and methodology

General procedures
We shall carry out pre-engagement meeting/visits in order to clearly understand the
organizational structure the relationship with other companies. This will enable us to
know the structure in place and plan our staff strength and mix for the audit field
work.
Our activities when appointed shall include the following:

1. Application of unapproved and unagreed interest rate:

Sometimes, the rates and fees used for debit interest/fees on facilities availed might be
inconsistent with the laid-down monetary policies and might not be as agreed with the
bank(s). It is sometimes a fraction of percentage less for credit interest or a fraction of
percentage more for debit interest. The implication is that the account holder is denied
of his/her legitimate funds while the bank rakes in more profit by way of excess
charges.

2. Application of COT (Commission-On-Turnover):

COT is one of the major means through which banks overcharge customers especially
the high networth and volume accounts. There are about six classes of transactions
Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 exempted from COT charges but most of the banks do otherwise. Sometimes, because
of the volume of transactions, you might have negotiated COT rate with your bank. In
order to increase their COT earnings, the bank use rates higher than agreed rate
without informing customers.

3. Application of undue excess/default charge:

Credit (overdraft, excess overdraft, finance, lease, etc) are facilities given to proven
customers to facilitate and promote their businesses beyond their financial
capabilities. It is mandatory that accounts running on one/more facilities must attract
debit interest. In some banks and for some account holders, the stipulated limit does
not mean the customer cannot exceed the limit but the amount by which the limit is
exceeded (called excess/default) would attract a higher debit interest rate. Contrary to
monetary policies, when limit is exceeded some banks calculate interest using excess
rate on both limit and excess thereby overcharging the customer on the limit.

4. Application of unauthorised fees on facilities:

There are fees allowed to be charged on bank facilities. These fees have rules and
regulations guiding their applications, computations and frequencies. Most times,
some of the banks violates the rules and regulations on fees by applying wrong
procedures and frequencies.

5. Inappropriate management of BAs and CPs:

BA (Bankers Acceptance) and CP (Commercial Papers) are instruments used by banks
to avail credit facilities to credit-worthy customers. Inappropriate BA and CP
parameters like interest rates, tenor/duration termination, fees, rollover differentials,
etc could lead to huge amount of overcharge on the account absorbing the
fees/charges.

6. Foreign Exchange Sales, Bidding and Rates:

Another major means of overcharge on facility accounts is exchange rates applied on
some foreign exchange transactions. Several times, the banks apply unauthorised
exchange rates on forex transactions thereby short-changing the customers

7. Application of backdated/postdated value/effective dates:

Backdating of debit transaction is a situation in which a withdrawal is given a
value/effective date earlier than the transaction date. An example is when a
withdrawal that took place on Friday 10th January, 2003 is said to be effective (i.e.
having value date on Monday 6th January, 2003. Postdating of credit transaction is a
situation in which a lodgment is given a value/effective date later than the supposed
value date. An example is when a lodgment that took place on the Monday 13th
January, 2003 and supposed to have value on 16th January, 2003 is given 20th
January, 2003.
The monetary policies states clearing period for every class of transaction thereby
enabling customers to determine appropriate value/effective date of their transactions.
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 Backdating/postdating of value dates is another major means of bank overcharge as it
imposes undue debit interest on customer and reduces credit interest due to
customers.

8. Inclusion of unknown cheques:

This is a situation in which a cheque with the same human-interpreted serial number
with yours and owned by another customer was debited into your account and account
of the owner thereby making an unauthorised withdrawal from your account. This
situation is very dangerous when your account is having high confirmation limit and
continuous overdraft facility because you may not know when an unknown cheque is
withdrawing funds from your account.

9. Application of undue VAT charges:

By regulations, not all charges are VATable but the banks do otherwise. Example, VAT
is not chargeable on interest/overdraft charges.

10. Statement/Cash book Reconciliation:

We shall reconcile the Bank Statements with the Company’s Cash Book. For situations
where one transaction on statement of account is splitted into two/more on the cash book
or vice versa, we shall employ manual match function to enable users match the
transactions.

Upon completion of the matching exercise, we shall produce the following reports:

a. Reconciliation statement
b. Bank statement listing
c. Cash book listing
d. Transactions matched
e. Cash book unmatched transactions
f. Bank Statement unmatched transactions

5.3 Conclusion

We recognize that all methodologies to be adopted in carrying out the assignment may not
have been spelt out fully in this Expression of Interest (EOI) while other approaches and
methodology will be contingent on-the-job and situations that may arise during the work.
The above is therefore the summary of what we intend to do if appointed by Femab
Properties Limited to recover its Excess Bank Charges.

6.0 PROPOSED TEAM STRUCTURE FOR PERFORMING THE ASSIGNMENT

6.1 TEAM COMPOSITION AND TASK ASSIGNMENTS

Expression of Interest for Appointment as Consultants to Femab Properties Limited By Balogun Badejo Cons. Ltd
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 Our understanding of the project is that the recovery shall be for the excess bank charges on
the accounts of Femab Properties Limited. The Structure for management which shows the
designation of proposed project personnel in our Company and intended position during the
project is as shown below:

Supervising Partner

Quality Control
Partner
Managers

Supervisors

Audit Senior Audit Senior Audit Senior

Graduate Trainees

The Proposed Team was chosen considering the Client, Nature of Job, envisaged Timing,
Deliverables expected and most importantly, the experience, exposure and calibre of
Personnel.

We are confident that the Staff mix will be adequate for the project and if there is need to
deploy additional personnel, we shall act accordingly.

7.0 PROFESSIONAL FEE

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 Our fee for this service shall be Fifty (50) percent of the total amount
recovered.

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