Reps write CBN, NSITF, demand equity payment to FMBN


The House of Representatives Committee on Public Accounts has condemned the failure by the Federal Mortgage Bank of Nigeria and the Tertiary Education Trust Fund to present their audited accounts for five years.

The committee also criticised the Central Bank of Nigeria and the Nigeria Social Insurance Trust Fund for not paying up their 30 per cent and 20 per cent equity capital as shareholders of the bank, respectively, as stipulated by the FMB Establishment Act.

The committee spoke in Abuja on Thursday at an investigative hearing on audit queries issued by the Office of the Auditor Genaral of Federation against ministries, departments and agencies of the Federal Government.

The OAUGF had queried the Managing Director/Chief Executive Officer of the FMBN, Mr Ahmed Dangiwa, and the management staff of the bank over five-year unaudited accounts.

Chairman of the committee, Oluwole Oke, and members noted that the audit queries raised by the OAUGF against the MDAs had shown that the revenue profile of the government agencies was on the decline.

Oke especially condemned the noncompliance of the MDAs with the extant laws and regulations on audited accounts despite their previous appearances before the committee on the contentious issue.

The committee also asked why the CBN and NSITF should not pay up their 30 per cent and 20 per cent share of the FMBN’s equity respectively.

The MD/CEO of FMBN, however, explained that the Federal Government  owned and had paid N60m out of the N1.5bn being its share of equity in the bank.

He also told the committee that the audited accounts of the bank were ready but awaiting the board’s approval.

Dangiwa also noted that the current management of the bank inherited the five-year unaudited accounts from the previous management, while efforts were ongoing to clear the arrears.

The FMBN boss, while speaking on the percentage equity shareholders’ capital in the bank, said the Federal Government owns 50 per cent; the CBN, 30 per cent; and the NSITF, 20 per cent.

In his ruling, Oke asked the clerk to the committee to write to the appropriate authorities in the CBN and NSITF and ask them to pay up their equity shareholding in the mortgage institution.

Earlier, the committee had turned down the presentation by one Mr Idris Alkali, the representative of the Executive Secretary of TETFUND, Prof Suleiman Bogoro.

The lawmakers insisted that the TETFUND boss must appear before them unfailingly on Friday, February 5, 2021, in accordance with the provisions of the law.

Source: PUNCH.

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