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Give Account For Missing N100bn Dirty Notes, Others, SERAP Tells CBN Gov

Published

5 months ago

June 30, 2024

By Kayode Sanni-Arewa

The Socio-Economic Rights and Accountability Project has urged the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, “to account for and explain the whereabouts of the over N100 billion ‘dirty and bad notes’ and ‘other large sum of cash awaiting examination’ which are kept in various branches of the CBN.”

In a letter dated June 29, 2024, and signed by its Deputy Director, Kolawole Oluwadare, SERAP said the allegations are documented in the latest annual report recently published by the Auditor-General of the Federation.

The organisation said these allegations by the Auditor-General suggest grave violations of public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anti-corruption obligations.

SERAP also asked Cardoso to “explain the whereabouts of the N7.2 billion budgeted for the construction of the CBN Dutse branch in 2010 and the N4.8 billion budgeted for the renovation of the CBN Abeokuta branch in 2009, and to publish the names of the contractors who collected the money but failed to complete the projects.”

SERAP urged the CBN boss “to explain the whereabouts of the allegedly missing outstanding loan of N1.2 billion granted to the Enugu State Government in 2015 and the outstanding loan of N1.9 billion granted to the Anambra State Government between 2015 and 2016 and to fully recover and remit the public funds to the treasury.”

It also asked him “to refer these grave violations of the Nigerian Constitution 1999 (as amended), the CBN Act and the country’s national and international anti-corruption obligations to appropriate anti-corruption agencies for investigation and prosecution, as appropriate, and the recovery of the public funds.”

The letter read in part, “We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.

“Explaining the whereabouts of the missing public funds, publishing the names of those suspected to be responsible and ensuring that they are brought to justice and the full recovery of any missing public funds would serve the public interest and end the impunity of perpetrators.

“According to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Central Bank of Nigeria (CBN) has since 2017 been keeping over N100 billion ‘dirty and bad notes’, and other large sums of cash awaiting examination in various branches of the CBN.

“The Auditor-General fears that the ‘dirty and bad notes’ initially planned to be destroyed may have been ‘diverted and re-injected into the economy.’

“The CBN in August 2010 also reportedly budgeted N7.2 billion [N7,286,500,476.76] for the construction of the Dutse branch building. The Dutse branch was due to be completed in November 2012 but the contractors have failed to complete the project.

“The Auditor-General is concerned that the project may have been ‘awarded to an incompetent contractor,’ and wants the ‘job completed without further delay.’

‘The CBN in 2009 reportedly budgeted N4.8 billion [N4,812,608,028.10] for the renovation of the CBN Abeokuta branch. The Abeokuta branch was due to be completed in 2012 but the contractors have failed to complete the project.

There is no significant renovation work on the site, several years after the proposed completion date. The Auditor-General is concerned that the project may have been ‘awarded to an incompetent contractor,’ and wants the ‘job completed without further delay.’”

SERAP said these violations also reflect a “failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and to uphold the principles of transparency and accountability.”

It added, “The CBN also reportedly failed to account for the missing outstanding loan of N1.2 billion granted to the Enugu State Government in 2015 and the outstanding loan of N1.9 billion granted to the Anambra State Government between 2015 and 2016. The Auditor-General fears the public funds may have been diverted. He wants the money fully recovered and remitted to the treasury.

“Paragraph 708 of the Financial Regulations 2009 provides that, ‘on no account should payment be made for services not yet performed or for goods not yet supplied.’

Section 35(2) of the Public Procurement Act 2007 provides that, ‘once a mobilization fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate

Section 16(6) of the Public Procurement Act states that ‘all bidders shall possess the necessary professional and technical qualifications to carry out particular procurements; the financial capacity and adequate personnel to perform the obligations of the procurement contracts.’”

SERAP asserted that these alleged violations have seriously undermined the ability of the CBN to effectively discharge its statutory functions and the public trust and confidence in the bank.

According to the organisation, the apex bank ought to be committed to transparency and accountability in its operations.

It added, “SERAP notes that Section 15(5) of the Nigerian Constitution requires public institutions to abolish all corrupt practices and abuse of power.” Section 13 of the Constitution imposes a clear responsibility on the CBN to conform to, observe and apply the provisions of Chapter 2 of the Constitution.

Paragraph 3112(ii) of the Financial Regulations 2009 provides that, “Where a public officer fails to account for government revenue, such officer shall be surcharged for the full amount involved and such officer shall be handed over to either the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the CBN to ensure proper management of public affairs and public funds.

“Nigerians have the right to know the whereabouts of the public funds. Taking the recommended measures would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.

“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions’ activities.”

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Reps Quiz Federal Polytechnics Damaturu, Mubi, Monguno Over Infractions

Published

4 hours ago

November 24, 2024

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has queried the Federal Polytechnic Mubi, Adamawa State, Federal Polytechnic Monguno, Borno State and Federal Polytechnic Damaturu, Yobe State over series of administrative and financial infractions.

This was as Rectors and some management staff of the three institutions appeared before the house Committee on Polytechnics and other Higher Technical Education, as part of oversight function to render accounts of their budget performances.

But the Committee found various infractions in the documents presented by the three institutions which ranged from abuse of Federal Character in employment, Extra-Budgetary spendings and recurring abandoned, uncompleted projects in one of the institutions.

During presentation by the Rector of Federal Polytechnic Mubi, Dr. Abdulrahman Ishaku, the Committee discovered that projects that were to be completed in two to three years were not finished despite adequate release of funds in budget.

Specifically, the Committee was provoked by the non-completion of a staff quarters and an administrative block project by the institution for years.

Speaking, Rep. Emil Inyang who stood in for the Committee Chairman, Rep. Fuad Kayode Laguda at the meeting on Thursday, lamented that, the projects have not been completed and have been recurring in the budgets.

He said, “Physical Planning, can you show me where you rolled over the project to 2023? It’s not here. Is it in 2024? Why do you come here to lie? Where is it? That admin block, is it in use? Has it been completed? So, you have abandoned it.

“Gentlemen, I don’t know what to say to these kinds of people. Construction of staff quarters, Item number Nine under 2022 capital projects. Have you seen it Rector? What is the state of that building? Is it completed? It is completed, that’s what is shown here, and you are saying it is still remaining fittings. Is fittings not part of completion?

“You people are just disgracing yourselves. We are just killing this country from various directions. From our various positions we are just killing this country. Let me ask a question on this staff quarters. In 2022, the amount appropriated was N57.9 million, N28.9 was utilized was released, so remaining N28.9 that’s half.

“But, by 2023, appropriation was 88 and the entire amount has been released. So, is it the same project?If it is the same project, when this appropriation was done, does it mean that, the other 28 that was not done, not utilised that time, is it kept somewhere?”

The Rector however informed the Committee that, the fund was later mopped up.

In his ruling after the submission, the Chairman stated, “What I will tell you now is that, instead of going through this your document that does not satisfy anything, please, you will.list all the abandoned, all the structures you have not completed. When it started, How much was appropriated, How much you have put in till date, the state of those projects one after the other in the entire school.

“Not just in. your regime. From inception till date.So that, we will include them in your 2025 budget. You will not do any new thing as capital. You must complete these abandoned. You have turned some of these projects to conduits of putting money into them and not completing them. Even the ones you have written as completed here. You used your own mouth to tell us here that, you have not installed fittings. That is what you said.

“So, this is why it is necessary for us to go there and see things for ourselves.Because what you are doing here, you are just wasting governments’ resources. These abandoned projects or the state of the jobs especially constructions, let’s have it in one week time. How much you have put in there, at what stage are they, how much you will need to complete”.

Similarly, the Committee criticized the Federal Polytechnic Damaturu over using Insecurity as an excuse for financial malfeasance and other infractions as well the abuse of Federal Character in employment.

Chairman of the Committee noted that, the institution has carelessly spent its Internally Generated Revenue (IGR) according to the records presented to the Committee.

In his presentation, the Acting Rector, Dr Ibrahim Babale Gashua said, the institution is faced with the challenge of low IGR as a result of the insecurity being faced in the state, which according to him, has reduced students intake and other activities.

He said, “We that are residing in Damaturu, the capital of Yobe State, we have three different high institutions. We have to lower our tuition fee because not everybody will come from outside the state. Even those in the state, it is only the course that is not available in their places that they come for in Damaturu because of the insurgency”.

The Committee however discovered that, despite the insurgency claim that reduced the institutions IGR, there was no commensurate reduction in its spending which the Committee said cannot be justified.

Another member of the Committee while commenting on the matter said, “Everybody comes to claim insurgency. Students don’t want to come to the schools. But it doesn’t stop them from spending the whole money.IGR, you blow it, Overhead, and yet, there is insurgency. So, it’s funny. You see, if I have a house and I am supposed to have 10 people occupying it. If 10 people are not occupying it, it means that my NEPA.payment, my PHCN money will reduce, because consumption of power supply will reduce. My water consumption will reduce. My number of cleaners will reduce because I don’t have full occupation. You understand what I am saying? My security personnel will reduce in terms of numbers.

“So, these are the issues.Most of the Polytechnics in the North come here brandishing this insecurity issue as the major reason for non performance. You are not performing on students admission, but you are performing on your expenditure profile”.

Speaking, Chairman of the Committee said, “Ok, this insurgency is a big excuse. Once you mention it, you will all close our mouths.Look at your Nominal Role, a federal Institution. Open to page 47 and 48, you will see how you have obeyed the law of the land, the Federal Character. Have you seen it Acting Rector? That’s the best you can do? You think from all those Zero-Zero states, if you offer them employment they wouldn’t come?”.

The Rector however reacted saying, “Some of them don’t come. Even those that we have left. I am telling you Sir”.

But a member of the Committee, Rep. Adebayo Adepoju faulted the Rector’s claim and said, it was not justifiable.

He said, “You cannot defend it, because if you are trying to defend it, saying that you’ve done everything in your powers and Nigerians have refused to come to your school, at that point, you say you have done the most you can do.

“But, when you did not even given Nigerians the opportunity to apply. We know what goes on in Federal Character. We know. I am telling you, if you go there and you want to apply, everybody has an interest, they give you. And before you know, they give you Certificate of Compliance.

“That Certificate of Compliance, we have shredded it so many times. Give yourself the opportunity to be fair to Nigerians.People want jobs in this country. We have so many jobless people and you will agree with me, there are many that will say, I won’t mind to go to Borno to teach.Please let’s give them an opportunity”.

The Rector and Management of the Polytechnic were directed to remedy the anomalies in their employment and henceforth advertise all vacancies in national dailies in order to give all Nigerians equal opportunity.

Similarly, after a presentation by the Rector, Federal Polytechnic Monguno, Prof. Garba Mohd, the Committee directed the institution to also be diligent in its observance of Federal Character and other issues as the Committee discovered a skewed empolyment in the institution in favour of a particular section of the country.

It reminded the Rector and members of his management that, as a federal institution, it is required by law to treat all parts of the country in terms of employment and other considerations.

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Obasanjo narrates how he escaped becoming drug addict

Published

7 hours ago

November 24, 2024

Naijablitznews

Former President Olusegun Obasanjo has revealed how he almost became a drug addict.

He spoke in Abeokuta over the weekend at the second edition of ‘Fly Above The High’ anti-drug campaign conference organised by the Recovery Advocacy Network.

Obasanjo stated that smoking during his youthful age led to chronic coughing and almost became an addiction.

The former President, while lamenting the increase in drug abuse among Nigerians and other West Africans, urged Nigerian students and young people to refrain from abusing psychoactive drugs, saying that they ruin life rather than enhance it.

“If I had persisted, I could have become addicted. Once you get involved, it is difficult to get out.

“There’s nothing drug can do for you except destruction.

“We found out that West Africa has equally been a centre for drug consumption in a very bad way. That was more than 10 years ago, so the situation has since gone worse. And whatever applies to West Africa applies to all other parts of Africa,” Obasanjo said.

He cautioned against stigmatization and urged individuals who are already addicted to psychoactive drugs to get help.

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We saved $20bn after Petrol Subsidy Removal and FX Rate Reforms, Says Finance Minister

Published

7 hours ago

November 24, 2024

Naijablitznews

Wale Edun, minister of finance and coordinating minister of the economy, says Nigeria has saved $20 billion from petrol subsidy removal and market-based pricing of the foreign exchange rate.

Edun spoke at a ceremony recently held to mark the first 100 days in office of Esther Walso-Jack, head of civil service of the federation, in Abuja.

“An amount of five per cent of GDP is what those two subsidies were costing when there was a subsidy on PMS; when there was petroleum product generally for a long time and when there was a subsidy of foreign exchange. Between them, they were costing five percent of GDP,” he said.

“If you say GDP was on average, let’s say $400 billion. We all know what five percent of that is – $20 billion of funds that could be going into infrastructure, health, social services, education.”