Rep Asks CBN to Explain $9.5 Million Interest Disappearance from Petroleum Profit, Others
- Lawmaker wants CBN to explain how principle sums on the investments on ECA, PPT and Royal account went missing
- Rep Iyawe said Nigeria ranks second-worst-governed fund out of 34 resource-rich countries due to poor regulation
- He said there’s being controversies around the performance of the Excess Crude Account (ECA)
The House of Representatives has requested the Central Bank of Nigeria (CBN) to immediately disclose to the Auditor-General for the Federation's Office all the interest and principal sums on the investments in the Excess Crude Account (ECA), Petroleum Profits (PTT), and Royalty Account.
The call came after a resolution by Representative Esosa Iyawe (LP-Edo) was unanimously approved in plenary on Thursday. The member cited a 2016 audit report which revealed the disappearance of over $9.5 million in interest accrued from the PPT investment.
Source: UGC
According to the Iyawe, there were no specifics regarding the principal amounts deposited, the term, or the interest rate, as contained in a report by The Nations.
As the Federal Government’s Banker and custodian of investment vehicles, including the PPT and the ECA among others, he wants the bank to address concerns about the ECA's balances
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Need for transparency
Iyawe noted that the 2015 Annual Report of the Auditor-General for the Federation revealed that $1.82 million dollars deposit as interest on Investments in the ECA without stating the principal amount deposited or interest rate and terms.
He accused the CBN of refusing to grant the request by the Auditor- General to disclose the details regarding the management of interests accruing from the PPT/ Royalty and Foreign Excess Crude Account
Iyawe claimed that the administration of interest accruing on Federal Government investments has continually been shrouded in mystery, in violation of the accountability principle and indicating the misappropriation of urgently required public monies.
He added that there have been several controversies, accusations of corruption, and questionable performance around the ECA.
“Reports which revealed unapproved and indiscriminate withdrawals from the ECA, including current year expenditures, fuel subsidies, debt financing and power projects, all of which are outside the fund’s mandate.
He expressed disturbance “that the 2016 audit report revealed the disappearance of over $9.5 million interest” which accrued from the PPT investment.
According to him, the Natural Resource Governance Institute ranked Nigeria as the second-worst-governed fund out of 34 resource-rich countries as a result of its lack of regulations governing deposits, withdrawals, and investments.
He claimed that because there is no law supporting the ECA, it has continually faced accusations of poor management and a flood of litigation questioning its constitutionality.
Iyawe also claimed that experts had previously expressed concerns about the ECA's balances, which appeared to fluctuate at will without any apparent withdrawals or authorisation of such withdrawals.
List of Former Lawmakers in President Bola Tinubu’s Team
Legit.ng reported in a related story that President Bola Ahmed Tinubu began putting together his cabinet on Monday, May 29, after taking office. He believed these individuals can help him deliver on his promise to give Nigerians renewed optimism.
The fact that some of President Tinubu's cabinet's top officials were once federal politicians is an intriguing aspect.
Source: Legit.ng
