The Nation Newspaper

Tag: non-remittance

  • FRC berates Maritime Academy over non-remittance of surplus

    FRC berates Maritime Academy over non-remittance of surplus

    The Fiscal Responsibility Council of Nigeria has berated the management of Maritime Academy, Oron, Akwa Ibom State for flouting the Fiscal Responsibility Act by not paying its operating surplus into the Consolidated Revenue Fund (CRF) of the Federal Government.

    Its Acting Chairman, Barr Victor Muruako made this known yesterday at the interface between the scheduled corporation under the supervision of the Commission which is mandated to remit its operating surplus after the end of the year to the Federation Account.

    He noted that the Commission as one of the key government agencies saddled with the responsibility of improving on the independent revenue of the Federal Government and as such all the 122 scheduled corporation as directed by the Minister of Finance must key into this provision to improve on revenue generation that would be useful in executing the budget.

    “The Fiscal Responsibility Act of 2007 mandated our Commission to ensure that Ministries, Departments and Agencies under our supervision remit operating surplus as well as audited account for accountability and transparency in public finance and any corporation that flout this provision will be reported to the Attorney General of the Federation.”

    He maintained that the attitude of the Academy to remit operating surplus over the years calls for concern and he had no option than to ask Legal, Investigation and Enforcement Directorate of the Commission to move in and compel the institution to comply with the provisions of Fiscal responsibility Act.

  • Reps to probe CBN over non-remittance of $5b

    Reps to probe CBN over non-remittance of $5b

    • Seek baillout for collapsed, ailing firms

    The House of Representatives is to investigate the Central Bank of Nigeria (CBN) for alleged under remittance of over $5billion to the Federation Account.

    The lawmakers also urged the Federal Government to design a bailout fund for callapsed and ailing industries across the country.

    This followed the adoption of a motion of urgent public importance by Ayo Omidiran (APC, Osun). He noted that the CBN being the banker of government, receives financial in flows on behalf of the federation and should make same available on demand via the Federation Account on a monthly basis.

    She however regretted that the apex bank has not been forthright on the  issue.

    He said:  “The CBN takes advantage of this all important function of warehousing funds for the three tiers of government and preparation of the Federation Account statement, to manipulate the system by opening various accounts not known to the three tiers of government where funds are remitted, hidden, diverted and spent without authorisation.

    “The CBN in 2006, opened various accounts with JP Morgan Chase Bank in New York, USA, in which   International Oil Companies (IOCs) remit all revenues for the federation.

    “The CBN still operates an account with Federal Reserve Bank of New York, USA, alongside that of JP Morgan Chase Bank from 2006 till date.

    “The CBN’s responsibility of receiving revenue in foreign currencies and converting same to Naira for the benefit of the three tiers of government, has led to substantial loss in the amounts remitted to the Federation Account.

    “About the substantial difference between the official exchange rate of dollar to naira, and that at which the Bureau De Change sell in the parallel market, whereas it is the CBN that sells dollars to the Bureau Dr Change operators on a weekly basis as well as regulate the financial market.

    “In the recent past, FAAC meetings have been postponed due to irregularities observed in the Federation Account by the states.”

    According to her,  CBN violated Section 80 (2) of the 1999 constitution as amended by spending funds not appropriated by the National Assembly.

    “The CBN takes 0.25 per cent of all foreign denominated revenue as exchange commission (for converting dollars to naira), but even after deducting this commission, the balance credited to the Federation Account at various times have been in negative difference (against expectations), running into billions of naira per year.

    “It is worrisome  that the office of the Accountant General of the Federation has not reported these infractions of under remittance of millions of dollars and trillions of naira into the Federation Account by the CBN,” she lamented.

    The motion was unanimously adopted after it was put to a voice vote by the Speaker, Yakubu Dogara.

  • Wabba decries employers non-remittance of pension fund

    Wabba decries employers non-remittance of pension fund

    Nigeria Labour Congress (NLC) President Ayuba Wabba has chided employers who failed to remit pension funds, saying their action is a threat to the contributory pension scheme.

    Speaking at the Annual General Meeting (AGM) of Trustfund in Abuja, Wabba, a director in the organisation, lauded the Pension Fund Administrator (PFA), saying the NLC had directed its sectoral unions to compile names of organisations that deduct workers’ money but fail to remit it.

    He said: “During my visit to some of our sectoral unions, I urged them to follow up on the employers that deducted but failed to remit, and ensure that the right thing is done for the benefit of the working class. Where any employer refuses to comply, the national secretariat will step in. It is criminal for any employer not to remit deducted money because the law makes it compulsory for every employer to remit pension funds.”

    He lauded Trustfund Managing Director Mrs. Helen Da-Souza for ensuring that the PFA stayed afloat, and declaring dividend in an unfriendly environment occasioned by the recession.

    “There are challenges with the remittances of deducted fund especially by the employers, including state governments as they often fail to remit these funds. Trustfund is able to overcome the challenges because of the ownership structure of the organisation. Labour presence on the board of Trustfund ensures that the policies and operations of the organisation are tailored towards enhancing the well-being of workers and guarantee maximum return on investment.”

    In a related event, Wabba has commended the National Assembly for passing into law a bill on  Local Government autonomy.

    He gave this commendation at a  briefing in Abuja.

    He said the National Assembly deserved commendations for voting in favour of local government autonomy, despite pressure from interest groups.

    Wabba was optimistic that, if assented to, the amendments would free the local governments from the strangle-hold of state governments, and widen the democratic space as well as restore the lost glory of local governments.

    “The local government system,  known by various names, is the oldest form of administration, and sadly, the most abused and exploited in our post-colonial history.

    “Until progressive decline and bastardisation set in, the local government represented the centre of administrative excellence, clinical efficiency, training, education, development, tax administration and effective commodity boards. Local governments also represented maintenance culture of infrastructure, including roads, environmental sanitation, functional health facilities, low incidences of corruption and violent crimes. The singular reason for this magical performance was that local governments were close to the people and ministered to their needs,” he said.

    Wabba urged governors “to sheathe partisan or insular considerations and support these amendments in national interest”.

  • Fed Govt loses N1tr to non-remittance of operating surpluses, says FRC

    Fed Govt loses N1tr to non-remittance of operating surpluses, says FRC

    • CBN: releasing N6tr budget fund ‘ll worsen inflation

    The Fiscal Responsibility Commission (FRC) has raised the alarm that the Federal Government may be losing over N1 trillion due to the non-remittance of operating surplus by revenue generating agencies.

    Its Acting Chairman, Mr. Victor Muruako, who spoke yesterday at the first edition of the Nigerian Economic Stakeholders Summit in Abuja, said government agencies had perfected their art of defrauding the country through deliberate wrong computations, express diversion of funds, and application of wrong accounting standards.

    Muruako said the commission “will ensure that every kobo of government is well utilised; we have decided to monitor the payment of operating surpluses by revenue generating agencies into the CRF.”

    He said has attracted N367 billion into the Consolidated Revenue Fund (CRF) from operating surplus of revenue generating agencies since 2009.

    Meanwhile, the Central Bank of Nigeria (CBN) has warned that if the N6trillion budgeted for this year is released into the economy over a seven month period, it will worsen the inflation situation in the country.

    Its Director, Monetary Policy Department, Mr Moses Tule in a paper presented at the event urged the government to avoid the mistake it made in passing the 2016 budget late, stressing that with its implementation starting about five months into the year, it would be difficult to ensure full implementation.

    Tule said even if the government were to release the N6 trillion it budgeted for the year, the economy does not have the capacity to absorb such huge spending over a seven month period.

    Since the fund was planned to be utilised over a 12 months period, he warned that “any plan to release it within seven months would only worsen the level of inflation in the country.

    He added that this æould only be effectively managed through fiscal and monetary coordination.

    The Minister of State for Budget and National Planning, Mrs Zainab Ahmed who was represented by the Director, Macroeconomic Department in the Ministry, Mr Tunde Lawal said the Federal Government was “implementing a roadmap to stimulate investment into the solid mineral sector and plug revenue leakages in the sector.”

    The government she said, “is also determined to set a three year deadline for the country to be self sufficient in refined petroleum products and become a net exporter.”

    To achieve this, she said the Federal Government would ensure the speedy passage of the Petroleum Industry Bill (PIB).

  • PDP, Ekiti differ over non-remittance of workers’ cooperative deductions

    The camp of the People’s Democratic Party’s (PDP) governorship candidate in Ekiti  State, Mr. Ayodele Fayose and the All Progressives  Congress (APC)-led government   yesterday differed over an allegation that the administration is pilfering co-operative societies’ funds deducted from workers’ salaries.

    Fayose urged “all government workers to reject the Kayode Fayemi-led government” at next month’s election, owing to the issue.

    He promised to pay deductions made from workers’ salaries into their  cooperative societies as when due, if elected.

    Fayose, who spoke through the director-general of his campaign organisation, Chief Dipo Anisulowo, alleged that over N2 billion meant for the cooperative societies had not been remitted.

    He also claimed that the fund was being used for APC campaign for the June 21 election.

    But reacting, the Commissioner for Finance, Mr. Dipo Kolawole, explained that monthly deductions from workers’ salaries regarding cooperative dealings were “essentially a private affair of the workers”.

    Kolawole said it was not possible not to remit deducted sums from the salaries of workers “because whatever is removed from the workers salaries this month, is what will be used to offset requests of some other cooperative participants the following month”.

    The deductions of workers’ salaries, he added, is being handled by the established official accounts departents.

    “Government has nothing to benefit. It is like a social responsibility on the part of government.

    “If Fayose now claims government would deduct that and pocket it, I don’t see how that is possible and why such a move would be made at all. It continues to baffle me why a governorship candidate would revel in such puerile lies to win unmerited favours”, Kolawole said.