Reps begin probe of $5b under-remittance by CBN
THE ad hoc committee constituted by the House of Representations to investigate the Central Bank of Nigeria (CBN) for alleged under-remittance of over $5 billion to the Federation Account began work at the weekend.
The committee headed by James Faleke (APC Lagos) met to fashion out a work plan on which ministries, departments and agencies (MDAs) will be invited for the investigative hearing.
Faleke is also the Chairman, House Committee on Customs & Excise.
A motion of urgent public importance by Ayo Omidiran (APC, Osun) had alleged that the CBN as banker of government has not been disclosing the true state of the financial flows into the Federation Account on a monthly basis.
The motion also indicted the office of the Accountant General of the Federation for not reporting the alleged infractions by the CBN.
House Speaker Yakubu Dogara announced the constitution of the ad hoc committee last week at plenary.
The committee has begun work in earnest, inviting the CBN governor and the Accountant General of the federation as the principal witnesses in the investigation among others.
Moving the motion on the floor, Ayo Omidiran (APC Osun) had expressed regret that the apex bank has not been forthright on the issue.
Her words: “The CBN takes advantage of this all important function of warehousing funds for the three tiers of government and preparation of the Federation Account statement to manipulate the system by opening various accounts not known to the three tiers of government, where funds are remitted, hidden, diverted and spent without authorisation.
“The CBN in 2006, opened various accounts with JP Morgan Chase Bank in New York, USA, in which International Oil Companies (IOCs) remit all revenues for the federation.
“The CBN still operates an account with Federal Reserve Bank of New York, USA, alongside that of JP Morgan Chase Bank from 2006 till date.
“The CBN’s responsibility of receiving revenue in foreign currencies and converting same to Naira for the benefit of the three tiers of government has led to substantial loss in the amounts remitted to the Federation Account.
“About the substantial difference between the official exchange rate of dollar to naira, and that at which the Bureau De Change sell in the parallel market, whereas it is the CBN that sells dollars to the Bureau De Change operators on a weekly basis as well as regulate the financial market.
“In the recent past, FAAC meetings have been postponed due to irregularities observed in the Federation Account by the states.”
According to her, CBN violated Section 80 (2) of the 1999 constitution as amended by spending funds not appropriated by the National Assembly.
“The CBN takes 0.25 per cent of all foreign denominated revenue as exchange commission (for converting dollars to naira). But even after deducting this commission, the balance credited to the Federation Account at various times have been in negative difference (against expectations), running into billions of naira per year.
“It is worrisome that the office of the Accountant General of the Federation has not reported these infractions of under remittance of millions of dollars and trillions of naira into the Federation Account by the CBN,” she had said.
