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Senate Discovers Loopholes In FG N1.1trillion Foreign Financial Institution Investment

Senate Discovers Loopholes In FG N1.1trillion Foreign Financial Institution Investment

Some issues have been discovered by the Nigerian senate in the N1.1billion investment made by Federal Government in the Crown Agents Bank and other foreign financial organizations.

In the UK, Crown Agents Bank is a wholesale Foreign Exchange and cross-border payment services provider with a global network of offices in the rising market.

The Senate accused AGF of neglecting to present shares certificates to validate Federal government investments at the Crown Agents Bank and Financial Institutions in Nigeria, according to daily post.

The errors arose due to the Accountant General of the Federation failing to provide share certificates to validate the authenticity of N46 billion investment in 2015, and failing to provide written authorization for the disposal of N134.3 billion because the account into which money was credited was not made available for audit by the Accountant General in 2015.

N547.8 billion had been set aside as an opening balance for Nigeria’s National Integrated Power Project (NIPP) at the beginning of 2015, and no additional investments were made in the power industry throughout the year under review.

Further, according to the study, Crown Agents disposed of investments totaling N3 billion, while other investments totaling N439.7 billion were received without documentary evidence during the year under review.

The audit certification of the account where N3bn was credited was not supplied.

An overestimate of N239 billion in 2014 investment was uncovered.

“As of the end of 2015, the federal government of Nigeria had an extra investment of N46.3 billion and a total disposal of investment of N134.3 billion,” the Auditor’s report states. No audit was conducted on the shares certificate as it was not provided, which would have verified the validity of the increased investment of N46.3 billion.

“In addition, the account into which the funds were credited and written authorization to carry out such transaction was not supplied for audit confirmation.”

Since the beginning of 2015, the National Integrated Power Project (NIPP) opened with a balance of N547 billion. No additional investments were made in the power sector in 2016.

It was mandated by Auditor-General that all additional and disposed investments be authorized and share certificates are provided for audit verification by the Accountant General of the federation.

Accountant General’s Office responded, saying: “The Accountant General’s Office stated that the N10 billion and N16.8 billion investments in Nigeria Bulk Electricity Trading Plc and Galaxy Backbone were not made in 2015 but were investments shown in previous statements, while the N20 billion investment in the Development Bank of Nigeria was a fresh investment by the FG.

Read More: Senate Discovers N97Billion Illegal Funds Issued To Nigerian Army And Others

In addition, N160 million was invested in the Infrastructure Bank as a result of the Bank’s Right Issue subscription.

Sen. Matthew Urhoghide’s committee, on the other hand, did not accept his explanation, because he was unable to present a share certificate.

Based on the Committee’s report, the Senate directed that within 60 days, the Accountant General’s Office If the Federation must send a share certificate to the Auditor General of the Federation for audit.

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