N1.2trn unclaimed funds: Reactions trail discovery of N300bn in commercial banks
…As Committee uncovers additional N5.2bn unremitted revenue, operating surplus others by NIPC in six years
By Uthman Salami, Matthew Dennis and Ariemu Ogaga
Reactions are continuing to trail the discovery of over N300 billion in commercial banks by the House Committee on Unclaimed funds just as the Committee uncovered additional unremitted N5.2 billion unremitted revenue, operating surplus and other funds by Nigeria Investment Promotion Council (NIPC) in six years.
The House of Representatives Ad-Hoc Committee, on February 8, had embarked on probe into the recovery of N1.2 trillion unclaimed funds in commercial banks, Ministries, Departments and Agencies (MDAs) as well as the Central Bank of Nigeria (CBN).
During public hearing yesterday, the Chairman of the Committee, Unyime Idem (PDP, Akwa Ibom) disclosed, after a session with Citi Bank and officials of the Nigeria Investment Promotion Council (NIPC), that the Committee has so far discovered over N300 billion trapped in dormant bank accounts in domestic and foreign currencies, accounts without BVN, failed contracts, excess unremitted funds and more, noting that the amount represented a fraction of unclaimed funds in the commercial banks.
Explaining further, he said the money could be likened to hanging funds as a result of failed transactions by government agencies and banks.
The management team of Citi Bank was owing a total of N99 billion out of the N1.2 trillion being owed federal government by about 500 entities which include Commercial Banks, MDAs and others, the Chairman further revealed while presenting a list of accounts.
He said the funds were being held in Citi Bank, insisting that the officials of the bank needed to explain.
Other members of the Committee further quizzed the officials to explain the status of accounts belonging to ABS Ltd, Global Offshore Ltd and Titan Energy Ltd which they said were holding funds in both Naira and Dollars.
Speaking on her part during the session, the Executive Director, Operations and Technology of the Bank, Ngozi Omoke-Enyi assured that the letter sent by the committee which was specific on what was required had been fully complied with.
She explained that the bank had submitted seven (7) accounts to the committee which were accounts without Bank Verification Number (BVN).
While disagreeing with Omoke-Enyi, the Committee insisted that, based on the documents submitted by the bank, they extracted more than seven accounts which need to be scrutinised.
After the deliberations, the Citi Bank officials were told to reconcile their accounts and appear again for clarifications.
Meanwhile, stakeholders who spoke exclusively with Nigerian NewsDirect believe the discovery of these funds was an indication of the rot continuously hovering over the banking sector in Nigeria, adding that thorough investigation should be conducted to unleash the whereabouts of remaining funds.
While speaking to our Correspondents, the Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE) and Former Director General, Lagos Chambers of Commerce and Industry (LCCI), Dr Muda Yusuf said there is need for thorough validation of the claim to avoid illegalities.
According to him, “There is a need for a thorough validation of this claim to avoid indulging in illegalities. It would be nice to get the perspectives of the banks on the matter.
“We should also make a distinction between public funds and private funds. It is also critical to investigate the circumstances leading to the unclaimed funds of such magnitude.
“Of course, there is the phenomenon of unclaimed dividends over which some definite positions have been taken.
“But matters like this require a painstaking investigation to ensure equity, fairness and adherence to the rule of law,” he stated.
A lead strategist of Nigerian Workforce Strategic and Enlightenment Centre (NIWOSEC), Dr David Kayode Ehindero said the recovery of abandoned funds in commercial banks is an indication that the fight against corruption has not yielded results.
He stressed that the Lawmakers have taken laudable action to recoup the hanging loot and it shouldn’t be swept under the carpet by some connivers.
Dr. Ehindero suggested that the federal government should be proactive by employing forensic experts to trace the history of such transaction by bringing both the staffers of commercial banks, culprits, and their connivers to book.
He emphasised that the antigraft law enforcing agencies should also be key in the scenario to eliminate such menace in the financial sector as N300 billion is a huge amount which can be injected into the infrastructural sector.
Also, an economist and a lecturer at Alex Federal University Ikwo Ebonyi State, Dr. Basil Chukwu said the monies belong to shareholders not a public fund.
However, he said if the shareholders give Central Bank of Nigeria go-ahead to access the fund, it should be into granting Small Medium Enterprises(SMEs) loans, building infrastructures.
According to him, “Central Bank of Nigeria, should not encourage idle balance, rather it should do a special arrangement with banks, shareholders on how to utilize such funds properly to the improvement of the Economy.”
…Committee uncovers additional N5.2 billion unremitted revenue, operating surplus other funds by NIPC in six years
Also, the Committee while addressing officials of Nigeria Investment Promotion Council (NIPC) disclosed that, according to their records, the Council is owing the federal government N5.2 billion in unremitted revenue, operating surplus and other funds from 2015 to 2021.
The Director Finance NIPC, James Akwa who appeared before the Committee sought an extension of time to reconcile their accounts.
He informed the Committee that, they made only two remittances as stated by the Committee due to the issues they had since 2016.
The Committee therefore granted the NIPC a week to reconcile and reappear before it next next week.
