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Reps issue 11-day ultimatum to CBN, BOI to submit audited account from 1999

By Emman Ovuakporie and Johnbosco Agbakwuru
ABUJA – THE House of Representatives Ad-hoc Committee on investigation of the activities of federally owned Development Finance Institutions, DFIs, has issued 11-day ultimatum to the Central Bank of Nigeria, CBN, and Bank of Industry, BoI, to submit their audited accounts since 1999 to date.

Meanwhile, the Chukwuemeka Anohu-led Ad-hoc Committee will from tomorrow (Tuesday) commence the probe of the DFIs such as BOI, Bank of Agriculture, BOA, the Nigerian Export-Import Bank, NEXIM, and the Nigerian Export Promotion Council, NEPC.

Others to appear before the committee at the investigative hearing are the Small and Medium Scale Enterprises Development Agency, SMEDAN, the National Economic Reconstruction Fund, NERFUND, and the Federal Mortgage Bank of Nigeria, FMBN, amongst others.

The Committee also summoned all former ministers of finance, agriculture, industry, trade and investment to appear at the public hearing.

A statement signed by the Committee’s Chairman, Chukwuemeka Anohu had directed the DFIs to submit 30 hard copies of written memoranda and a soft copy latest today (Monday).

According to the letter, management team of the DFIs were to submit: breakdown of the budgetary allocation appropriated for the bank on a year by year basis since 2009; breakdown of the actual budgetary releases from 1999 till date; detailed breakdown of both recurrent and capital expenditure from 1999 till date and detailed of CBN intervention fund from 1999 till date.

They were also expected to submit detailed breakdown of the loans granted from the DFIs and beneficiaries of such loans from 1999 till date; detailed breakdown of projects funded by such loans from 1999 till date; analysis of the project vis-a-vis their relevance to National economic development whether they were in conformity with the spirit and intent of the enabling Acts.

The committee also requested for the financial statement of the DFIs which include: report of the audited accounts of the DFIs and copies of the auditors report on the accounts audited from 1999 till date; nominal roll of the DFIs that reflects rank and geopolitical spread of the DFIs; detailed breakdown of all funds – local and foreign received by the DFIs from 1999 till date; detailed breakdown of all matching and managed funds from 1999 till date and all other documents or information that would assist he Committee in its assignment.

According to Anohu, the investigative public hearing was sequel to the resolution of the House in line with section 88 of the 1999 Constitution (as amended).

Anohu who spoke at the inauguration of the committee, described the performance of the DFIs as embarrassingly and tragic.

While expressed displeasure over the utilisation of several trillions of naira appropriated for their operations of the DFIs over the past decade, the lawmaker vowed that “there will be no sacred cows in the quest to reposition the DFIs.”

He also said, “Decades after the institutions were established and despite the huge budgetary provisions made for the agencies over the years, their impact in stimulating economic renaissance was yet to be felt.

“These institutions were charged with the primary mandate of providing long-term financing to the industrial and productive sectors of the economy and were designed to finance the establishment of large, medium and small industries as well as facilitate the expansion, diversification and modernisation of the existing concerns.”

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