News

February 15, 2024

TSA: Reps to sanction MDAs over non-compliance, summon CBN, others

TSA: Reps to sanction MDAs over non-compliance, summon CBN, others

The House of Representatives Public Accounts Committee (PAC) has resolved to sanction Ministries, Departments, and Agencies (MDAs) of government over violations of the Treasury Single Account (TSA).

Rep. Bamidele Salam, Chairman of the Committee, said this at the resumed hearing of the committee in Abuja.

The Committee also summoned the Governor of Central Bank of Nigeria (CBN), Mr Yemi Cardoso, Minister of Finance, Wale Edun, and representatives from the Office of the Accountant-General of the Federation to appear before it on Feb. 20.

The committee is investigating alleged leakages and non-remittances of TSA revenue generated through Remita.

Salam said that the investigation aimed for transparency and accountability and did not target any specific company.

Mr Deremi Atanda, Managing Director of Remita Payment Service Ltd (RPSL), clarified that Remita does not manage government revenue but acts as a software and payment gateway.

Atanda debunked the one per cent fee charged for processing TSA, adding that the applicable fee for processing TSA payments was N150 with VAT.

He said this was according to CBN circulars from November 2018 and December 2020.

He said that Remita offered free value-added services to the Federal Government despite foreign hosting costs.

The committee, however, expressed concern about the lack of documents, particularly from CBN, contrasting with Remita’s provision of a signed contract.

Salam said there was a need for the physical appearance of the Minister of Finance, CBN Governor, and Accountant General of the Federation before the committee on February 20, 2024.

NAN reports that in August 2015, former President Muhammadu Buhari approved the establishment and operation of Treasury Single Account for e-Collection of Government Receipts for all Federal MDAs with immediate effect.

This approval was contained in a circular number HCSF/428/S.1/120 entitled: Re-Introduction of Treasury Single Account, TSA, dated August 7, 2015, and signed by Danladi I. Kifasi, Head of the Civil Service of the Federation.

According to the circular, the TSA is to aid transparency and facilitate compliance with sections 80 and 162 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), and all receipts due to the Federal Government or any of her agencies shall be paid into the TSA as follows: Account Name:

Accountant General (Federal Sub-Treasury), Account No. 3000002095 maintained in the Central Bank of Nigeria (CBN), except otherwise expressly approved. (NAN)