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Tag: refund

  • N1trn rail contracts: Contractors to refund N2.5b

    The Hon. Ehiozuwa Agbonayinma-headed House of Representatives adhoc committee investigating the award and execution of rail contracts was yesterday told that six contractors involved in the over N1 trillion Rail Contracts are to refund N2.5 billion to the coffers of the Federal Government.

    The contractors who participated in the railway construction and rehabilitation contracts are to make the  refunds for excess payments made to the contractors by the Nigeria Railway Corporation (NRC).

    Officials from the Office of the Auditor- General of the Federation who were at the continued hearing of the panel investigating the rail contracts awards at the National Assembly said Audit Queries on the contracts were unanswered.

    Since the beginning of the investigations in October last year, the panel met with former Chairmen of the Board of the NRC and other stakeholders in the course of the investigative hearing.

    According to the OAGF official, CCECC, handling Lagos to Jebba rail line, is to refund N640 million while Costain West Africa Ltd, executing Jebba to Kano rail line is to refund N608 million.

    Geo Group Asano, executing signalling and communications upgrade is to refund N368 million to government coffers.

    Eser West Africa handling the Port Harcourt-Markurdi rail line is expected to return N339 million.

    CCEGG in charge of the Markurdi-Kano rail line would cough out N353 million, while Routing Nigeria Ltd would refund N221 million.

    Also at the hearing yesterday, Minister of Transport, Mr. Rotimi Amaechi who made a brief appearance told the lawmakers that the Ministry would conduct a forensic audit of the railway sector and all agencies under it, to ascertain if due process was  carried out in all its previous operations.

    He said: “I have written to Mr. President to permit the audit.”

    The minister however told the Committee that since he was not the minister at the time the contracts were awarded, it may be difficult for him to answer questions pertaining to them.

  • N116b deals probe: Panel lists those to refund cash

    N116b deals probe: Panel lists those to refund cash

    Dasuki, Fadile, Matawalle, Yuguda, others named

    EFCC gets report on how $2.1b was released 

    Barely three days after the Presidency claimed that 300  persons and companies were implicated in N116billion “curious” contracts issued by  the Office of the National Security Adviser(ONSA), details of the cash some of those indicted will refund have emerged.

    Also at the weekend, it was learnt a former Director of Funds in the Office of the Accountant-General of the Federation, Mohammed Dikwa, admitted to the Economic and Financial Crimes Commission( EFCC) that the controversial $2.billion released to ONSA under ex-NSA Sambo Dasuki were based on either presidential or ministerial orders.

    The Senior Special Assistant on Media and Publicity to the President, Mallam Garba Shehu, on Thursday  claimed that the ONSA committee had recovered over N7billion from those indicted.

    The indicted companies are to refund N41 billion.

    The investigating agencies, including the EFCC, will determine whether N75 billion should be recovered from some of the companies.

    The Special Committee in the Office of the NSA found some persons and companies “guilty” of some infractions.

    Some of the alleged infractions:

    • breach of contract terms;
    • non-execution of contracts;
    • haphazard or partial completion of contracts;
    • collection of funds for unexecuted contracts;
    • diversion of funds for political purposes; and
    • sheer mismanagement of contract funds.

    The 300 persons and companies have been referred to investigating agencies, including EFCC, Independent Corrupt Practices and Other Offences Commission (ICPC) and the police.

    Amounts to be refunded by some of the persons and companies are as follows: Acacia Holding Limited – (N600m and  N650m); Reliance Referral Hospitals Limited – N750m (16/4/2015); African Cable Television Limited -N350million; Dalhatu Investment Limited(N500m) -20/12/13 and N200m on 17/3/15;,Duchy Concepts Limited RC392281(N70m) – 17/3/15; Wehsec Farms Limited RC 713258(N200m); Stellavera Dev Company – N250m; Stellavera Dev Company- N250m; Societe d’Equipments internationaux – $6,954,000(21/4/2015), $30m(9/5/15); $50m(9/3/15); €1, 395, 346.84(11/12/13); €1,401,869(2/10/13); €2, 252,252.25; $16m (20/5/14); $38m(20/5/14); $36m(20/5/14); $5m(4/6/14); $10m(11/7/14).

    Some of the expected refunds from individuals are Dr. Bello Matawalle – N300m; Bello Fadile -N100m and Bashir Yududa N1.5 billion.

    A source in EFCC said: “Some of those indicted have outstanding cases under investigation by our agency. These allegations are intertwined and we may have to improve on a few clues.

    “The latest assignment is to recover the sums against these 300 persons and companies. A few of them had written to  the commission to refund some money illegally collected for jobs undone.

    “ In line with the mandate of the Presidency, we will get to the root of the allegations against those already referred to us. We will also collaborate with other investigating agencies.”

    Responding to a question, the source added: “Of course, some of these persons and companies will be prosecuted.”

    Meanwhile, a former Director of Funds in the Office of the Accountant-General of the Federation, Mohammed Dikwa, has given an insights to the disbursement of the controversial $2.1billion and other funds to ONSA under Dasuki.

    Dikwa gave the details in a statement made to the EFCC on the ongoing investigation of the $2.1billion arms procurement cash and the trial of some suspects.

    He admitted to the  EFCC that funds were released to ONSA, led by Dasuki,  based on either presidential or ministerial orders.

    He said: “I am the Director of Funds from April 2013 to date. All releases were made based on approvals by relevant authorities.

    “Releases of funds are normally initiated  by relevant MDAs and go through presidential approval or ministerial approval or budgetary provisions, depending upon the nature of the requests.

    “Having obtained the necessary approvals, the OAGF will process the approval by drawing a mandate instrument and send to the Central Bank of Nigeria(CBN).

    “The CBN will then pay the amount involved to the relevant agency. The agency will now spend the funds in line with the established Financial Rules and Regulations.

    “The Office of the Auditor-General of the Federation and other relevant agencies will also  conduct post-mortem examination of the books of accounts of such MDAs as to the appropriateness  or otherwise of such transactions.

    “All releases in favour of the National Security Adviser were based on approvals by the appropriate authorities.

    The following releases were made under the former Accountant-General of the Federation( Mr. J.O. Otunla) : $250,000,000 on 16/2/2015; $5,500,000 on 20/3/2015; $10,000,000 on 9/4/2015; $10m on 29/4/2015; $1,200, 000,000 in November 2013; $5.5m on 13/12/2013; $120m(15/11/2013)

  • 3,047 pilgrims to benefit from N50m refund

    3,047 pilgrims to benefit from N50m refund

    •2016 Hajj fee is N1.2million

    The Lagos State Government is to get a N50 million refund from the Federal Government on last year’s Hajj operation.

    Some 3,047 pilgrims from the state will benefit from the refund, Commissioner for Home Affairs, Dr AbdulHakeem AbdulLateef said at a Stakeholders meeting in Ikeja last Saturday.

    This is sequel to President Muhammadu Buhari’s directive to the National Hajj Commission (NAHCON) to return the unspent funds to the owners.

    The commissioner explained that the money was meant for feeding and other benefits not provided for pilgrims during the exercise.

    He said the pilgrims would get N16,000 each.

    AbdulLateef said: “I am glad to inform you that Governor Akinwunmi Ambode approved the refund of the money as soon as the NAHCON returns the unspent money.

    “This is to tell Lagosians that the present administration doesn’t joke with transparency promised during the campaign.”

    AbdulLateef thanked President Buhari and the commission for the decision.

    Speaking on arrangements for the 2016 exercise, he said intending pilgrims would pay N1.2 million.

    He noted that the state had earlier announced N950,000 but said the N250,000 difference was due to hike in accommodation and other essential needs in Saudi Arabia.

    “Saudi authority has increased fees items by 30 per cent which they attributed to the fall in oil prices in the world. Here in Nigeria, the usual concession on the purchase of dollars by pilgrims from the Federal Government has also been stopped.

    “The government has assured pilgrims that one dollar will be sold to them at the official rate of N197. Each pilgrim will be allowed to purchase a maximum of $1,000 at official rate,” he said.

    The commissioner assured pilgrims that the government would strive to make them comfortable, adding that there are provisions for replacements if any intending pilgrim withdraws because of inability to pay the balance to make up for the 2016 Hajj fees.

  • EFCC to Falae, Odili, Ladoja: refund cash or face trial

    EFCC to Falae, Odili, Ladoja: refund cash or face trial

    Commission retrieves Dasuki’s memos to Jonathan

    Ex-MILAD refunds 60 per cent

    All politicians who shared in the allegedly diverted $2.1billion arms cash must return what they got or face trial, the Economic and Financial Crimes Commission (EFCC) has said.

    A former Military Administrator of Kaduna State, Gen. Lawal Jafaru Isa, has refunded 60 per cent of the money he allegedly collected from the Office of the National Security Adviser (ONSA), The Nation learnt yesterday.

    Also yesterday, it was gathered that  Peoples Democratic Party (PDP) National Publicity Secretary Chief Olisa Metuh had admitted the transfer of N400million into a company in which he has substantial interest.

    According to sources, EFCC decided on refund of cash after retrieving some of the memoranda which the embattled former National Security Adviser, Col. Sambo Dasuki (rtd.), wrote to President Goodluck Jonathan to request for funds.

    A top EFCC source said none of the memos seen so far indicated that the funds would be used for political purposes, party funding and the 2015 general election.

    Based on the vetting of the memos and disbursement of money to PDP chieftains and other highly-placed Nigerians, the EFCC has drawn the battle line of either “you make a refund or face trial”.

    Some of the beneficiaries of the cash include former governors Peter Odili (N100m);  Rashidi Ladoja(N100m), Attahiru Bafarawa(N100m), Mahmud Aliyu Shinkafi (N100m), and Jim Nwobodo(N500m).

    Others are: Chief Tony Anenih(N260m); ex-PDP National Chairman Ahmadu Ali(N100m); Chief Bode George (N100m/ $30,000), Yerima Abdullahi (N100m); Chief Olu Falae (N100m); Tanko Yakassai (N63m); Gen. Bello Sarkin Yaki(N200m); Raymond Dokpesi, Iyorchia Ayu’s company(N345m); BAM Properties(N300m); Dalhatu Investment Limited(N1.5b); ex-PDP National Chairman Mohammed Bello Haliru, Abba Mohammed, Sagir Attahiru, serving and former members of the House of Representatives(over N600 million); former Chairman of the House of Representatives on Security and Intelligence, Bello Matawalle(N300m); ACACIA Holdings(N600m); Bashir Yuguda (N1,950,000) and many companies.

    Based on the vetting, the EFCC is insisting that all those implicated so far must refund the “illegal disbursement” of cash to them or face trial.

    A top EFCC source said: “We have conducted a thorough investigation and we have retrieved some of the memos sent to ex-President Goodluck Jonathan by the former National Security Adviser; none of them indicated that the cash should be for political purposes.

    “There was never a memo for cash advance for political matters like campaign or election.

    “We have also traced some of these funds directly to the accounts of these bigwigs or their proxy companies.

    “Having gone far, we are asking them to return these funds or else, we will go after them any moment from now. I think they should respect themselves and make urgent refund.

    “In the alternative, we will arrest them and arraign them in court to defend such strange allocations.

    “We will retrieve every kobo given out from ONSA. It is insufficient to say somebody gave me this money. Once we trace undeserved public funds into your account or phony and proxy  companies, we will ask for refund.”

    Regarding the interrogation of Gen. Isa, the source added: “He admitted collecting money from ONSA and he has refunded 60 per cent of the sum credited to him. I think it should be about N100 million.

    “Isa is the only person who has so far refunded money among the political figures who collected funds from ONSA. We have granted him bail to allow him time to source for the balance.”

    On the detention of the National Publicity Secretary of PDP, the source said: “So far, Metuh has admitted the transfer of N400 million by ONSA  into a company in which he has substantial interest.

    “It is left to him to justify why he deserved such benefit from arms cash. We are still questioning him on other remittances into the company’s account. We are also demanding how he will refund the cash.

    “Contrary to the noise outside, we did our homework very well. Anybody we bring to the EFCC this time around, we used to make sure that we have established a case against him.

    “So, we don’t invite or arrest on frivolous basis. We do thorough investigation this time around.”

  • Arms deal: Ex-military chiefs offer to refund contract sums

    Arms deal: Ex-military chiefs offer to refund contract sums

    •EFCC may seize Dasuki’s, others’ assets       •Targets mansions in Abuja, Kaduna      •One top Nigerian, two Israeli suspects sneak out

    There were indications last night that some of the former military chiefs and military officers under investigation by the Economic and Financial Crimes Commission (EFCC) have volunteered to refund some money for jobs undone.

    A source privy to the activities of the Special Investigative Committee said: “About four of such former officers have offered to make refunds. I think Dasuki does not know the extent to which the panel had gone in probing the arms deals.

    “When the case gets to court, Nigerians will appreciate the depth of the investigation by the panel.”

    In line with its enabling Act of Parliament,  EFCC may seize the assets of a former National Security Adviser, Sambo Dasuki, and some ex-military chiefs allegedly involved in the N644 billion arms deals.

    The anti-graft commission may invoke temporary assets forfeiture clause as part of the ongoing probe of the arms procurement.

    It was learnt that three suspects, including a top Nigerian and two Israelis, have sneaked out of the country to escape arrest.

    It was also gathered that some former service chiefs have offered to return votes meant for failed contracts.

    A reliable source said: “The EFCC may invoke Assets Forfeiture clause to seize the properties of Dasuki and other Service Chiefs who allegedly diverted or misappropriated funds meant for arms procurement in line with sections 28 and 34 of the EFCC (Establishment Act) 2004 and Section 13(1) of the Federal High Court Act, 2004.

    “Section 28 reads: ‘Where a person is arrested for an offence under this Act, the Commission shall immediately trace and attach all the assets and properties of the person acquired as a result of such economic or financial crime and shall thereafter cause to be obtained an interim attachment order from the Court.’

    “We have appreciable list of assets in Abuja, Kaduna, Lagos and Port Harcourt to be attached. One of the affected officers built two mansions in Kaduna and Abuja under six months.

    “A Service Chief is also being investigated for allegedly acquiring a property of the late first Civilian Governor of Bayelsa State, Chief Diepreye Alamieyeseigha.

    As at the time of filing this report, three key suspects in the procurement process were alleged to have sneaked out of the country.

    Another source said: “The government may appear to have been hard on Dasuki because three suspects implicated in the arms deal have sneaked out of the country. The suspects, including a top Nigerian and two Israelis, were rated as closer to Dasuki.

    “Wherever they are, we will repatriate them accordingly. With the cooperation of some countries, there is no hiding place for any suspect.

    “This is one of the reasons why the Federal Government does not want Dasuki to travel out for medical treatment.

    “The Department of State Security Service(DSS) was proactive in placing one of the suspects on surveillance but the recourse to court made the affected culprit to leave the country.

    “Another factor is that the cases against the ex-NSA are many and the government cannot say because of an isolated matter, he should be allowed to go abroad. What if he does not return to the country?”

  • Rivers orders Amaechi, ex-MILAD, others to refund N97bn

    Rivers orders Amaechi, ex-MILAD, others to refund N97bn

    It’s a tale of sound and fury, signifying nothing, says APC

    The Rivers State Government  has  announced its intention to prosecute the immediate past governor,Mr.Rotimi Amaechi,a former military administrator of the state,Brigadier General Antony Ukpo (rtd) and several other former officials of the state ,for allegedly misappropriating N97billion public funds.

    The money is said to have accrued to the state from the sale of government assets,including four gas turbines.

    The state  Attorney-General/ Commissioner for Justice, Mr. Chinwe Aguma,(SAN) has been directed by the state government  to commence the process of prosecuting  Amaechi and two others for what it called  the sale of the    gas turbines without due process.

    The All Progressives Congress (APC) of which Amaechi is leader in the  dismissed the government move as  “a tale told by an idiot, full of sound and fury, signifying nothing.”

    Governor Nyesom Wike  has also ordered the suspension of permanent secretaries and other top civil servants indicted by the  Justice George Omereji  Judicial Commission of Inquiry into the sale of valued assets of the state by  the immediate past administration.

    Briefing newsmen on the government White Paper on the Commission’s report, the Commissioner for Housing, Mr. Emma Okah, said Amaechi would be prosecuted along with  former Commissioner for Finance, Dr. Chamberlain Peterside and his counterpart in the Ministry of Power, Sir Augustine Nwokocha.

    Okah said that apart from prosecuting Amaechi and others,the Attorney-General is also expected to commence the recovery of funds realized from the sale of the  gas turbines from the former governor and Nwokocha.

    He said: “ The first term of reference (of the  Judicial Commission) is to ascertain the sale of the Omoku 150 megawatts gas turbine; Afam 360 megawatts gas turbine; Trans-Amadi 136 megawatts gas turbine and the Eleme 75 megawatts gas turbine by the administration of former Governor Chibhike Rotimi Amaechi.

    “The commission finds as a fact that the sale of 70% equity from the First Independent Power Limited in Omoku gas turbine, Trans-Amadi gas turbine, Afam  Phase I gas turbine and Eleme gas turbine, has  been very difficult to justify. They have therefore recommended the review of sale of the power assets  and the government of Rivers State has accepted that recommendation.

    “The commission recommends that the former governor of Rivers State, Chibuike Amaechi, along with his former commissioners for Finance and Power, Dr. Chamberlain Peterside and Augustine Nwokocha, respectively, should be held to account for their roles in the sales of the power generation assets of First Independent Power Limited and the disbursement of the proceeds there from.

    “Government accepts this recommendation and directs the office of the Honourable Attorney-General and commissioner for Justice, to promptly set in motion the appropriate machinery for the recovery of the proceeds of the sale of the gas turbines from the former governor, Rotimi Chibuike Amaechi, and every other persons implicated in the commission’s report.”

    Okah stated that the state government intends to recover  N3billion  from former Commissioner for Agriculture, Emma Chinda, which was  earmarked as  agricultural  loans to farmers.

    Amaechi’s name  was forwarded to the Senate last week along with 20 others for approval as ministers.

    Reacting  to the government action,the state publicity secretary of the APC,Mr.Chris Finebone  described the release of the government white paper as part of the scenes taken from a typical mediaeval era book of self-entertainment.

    “ It qualifies for nothing and is not worth more than the decrepit paperweight and putrefying character of its mastermind and authors. However, it is a huge relief to our leader, Rt. Hon. Chibuike Rotimi Amaechi that Nyesom Wike finally accepts that an accused is taken to court of law and not court of public opinion through the manipulation of the media.

    “Governor Nyesom Wike is at liberty to amuse himself but wanton display by a governor of crass ignorance of the basic workings of government with regard to how government disposes its property and the process of channelling the payments into government coffers calls for sober reflection by every Rivers man, woman and youth. And the question begging for answer is: how did we get here?

    “The APC would like to state that those who crafted this whole melodrama know very well that their contraption is nothing more than a tale told by an idiot, full of sound and fury, signifying nothing.

    “For the avoidance of doubt, the APC is glad that Governor Wike has finally hearkened to the pleas by former Governor Chibuike Rotimi Amaechi to go to court to prove his accusations rather than embark on expensive strings of media trial through newspapers and worthless television documentaries.

    We have no doubt that very concrete records of every bit of matter relating to the Monorail, sale of power stations, reserve fund, agricultural grant, lease of Olympia Hotel and any others have all been articulated and already in the public domain. Of course, these will be availed the court to permanently put paid to the ongoing chicanery by Governor Nyesom Wike and his friends.”

  • Supreme Court orders bizman, company to refund N85.6m to Benue

    Supreme Court orders bizman, company to refund N85.6m to Benue

    The Supreme Court has ordered a businessman, Kris Onyekwuluje, and his company, Artex Investment Limited, to refund N85,575,111.60k to the Benue State Government for the shoddy execution of a supply contract awarded to them  over 10 years ago.

    In a judgment delivered yesterday, the court’s five-man bench unanimously dismissed an appeal filed by Onyekwuluje and Artex against a 2005 decision of the Court of Appeal, Jos, in which they were earlier requested to make the refund.

    Onyekwuluje and his company were awarded contract for the supply and installation of some transmitters for the state’s radio station.

    Dissatisfied with the qualities of the materials supplied and the conduct of staff and officers of Artex, the state set up a judicial commission of inquiry under Section 2 of the Commission of Inquiry Law, Laws of Northern Nigeria 1963 to ascertain whether there was “abuse, misuse or misappropriation of money meant for the project.”

    The commission was also to ascertain “whether there was any improper or fraudulent practice or unjust enrichment by any person and to apportion blame and recover the monies believed to have been misappropriated, unjustly obtained or fraudulently administered. “

    At the end of its sitting in 1999, the commission issued a white paper which indicted Atrtex Investment and requested it to refund N85,575,111.60k, a decision the company and Onyekwuluje objected to and sued before the Federal High Court, Enugu in 2000.

    In the suit marked FHC/EN/CP/2000, Onyekwuluje and his company challenged the decision of the commission on the grounds that they were denied fair hearing and that the commission exceeded its jurisdiction.

    In its judgment on January 23, 2001, the trial court dismissed the suit on the grounds that the plaintiffs failed to establish that the commission lacked the jurisdiction to inquire into a contract transaction between the plaintiffs and the Attorney General of Benue State.

    They appealed the judgment at the Court of Appeal, Jos, which upheld the trial court’s decision, prompting Onyekwuluje and his company to appeal to the Supreme Court which gave its judgment yesterday.

    Justice Suleiman Galadima, who read the lead judgment of a five-man bench, held that the appellants’ right to fair hearing was not breached by the commission as earlier decided by the two courts below.

    “In the case at hand, the records show that the appellants fully participated in the proceedings of the 3rd respondent (the commission) from the beginning to the end of the sitting. They cannot now complain that they were denied fair hearing.

    “In the final analysis, I cannot disturb the concurrent findings of facts by two courts below as they have not been shown to be perverse or not reached as the result of a proper consideration of facts placed before them. In the circumstances, the decision of the Court of Appeal is hereby affirmed and the appeal is accordingly dismissed,” Justice Galadima said.

    Justices Mary Peter-Odili, Olukayode Ariwoola, Musa Dattijo Muhammad and Kudirat Kekere-Ekun, who were on the panel that heard the appeal, agreed with Justice Galadima’s reasoning in the lead judgment.

  • Agbakoba seeks refund of N1tr ‘illegal’ charges by operators

    Former Nigerian Bar Association (NBA) president Olisa Agbakoba (SAN) has threatened to sue the Seaport Terminal Operators Association of Nigeria (STOAN) and the Association of Shipping Line Agencies (ASLA) to court over an alleged illegal N1 trillion collected from importers.

    The charges were said to have been collected before the Nigerian Shippers’ Council (NSC) was appointed as the ports economic regulator. Agbakoba is accusing STOAN and ASLA of refusing to return the cash.

    Answering questions from The Nation at his office in Apapa, Lagos, Agbakoba said the Federal High Court in Lagos recently upheld the NSC as the ports economic regulator and directed the terminal operators and shipping companies to cut down their charges and refund all the money they collected from importers.

    Agbakoba accused the terminal operators and shipping companies of driving away genuine investors and crippling the economy because of their illegal charges.

    He urged the government to overhaul its outdated policies, and embark on a visionary enterprise that will institutionalise growth in the maritime sector as alternative to oil.

    The last major review of Nigerian Shipping Policy was 28 years ago when the NSP act no 10 of 1987 was enacted, he said.

    He wondered why the terminal operators and the shipping companies have not refunded the N1 trillion to boost shipping and maritime.

    Agbakoba urged the government to create an enabling environment to encourage huge investment in the sector.

    The ports that are supposed to be the hub of shipping business in West and Central Africa, he added, were unattractive and uncompetitive because of arbitrary charges.

    “We went to court recently and there were two very important cases; the terminal operators and shipping companies hiked their prices and introduced one non-sense charge (Shipping Line Agency Charge) making billions of naira and the court has declared it to be illegal collections.

    “The next case we are pursuing is that we are going to go after the terminal operators and the shipping companies to refund at least the N1 trillion they have taken illegally”

    “The N1 trillion, had Nigerian companies had it,  would give them capital to do other things, and this is why the Shippers Council has insisted that nobody must be allowed to over-price the ports because they do,  many importers will not patronise them ,” he said.

    Agbakoba said he is not happy because the ports have been abandoned for those in Benin Republic and Togo.

    “Until recently, there is no clearly recognised economic regulator for the shipping sector. The Federal High Court has held that the Nigerian Shippers Council is an economic regulator. It is only when the Nigerian Shippers Council, is empowered to regulate that stakeholders in the sector can turn around their businesses and generate huge revenue for the nation as their counterparts in other countries such as Malaysia, Indonesia, Hong Kong and USA.

    “This is due to lack of regulation in the sector, which has led to a plethora of uncoordinated activities and exorbitant port charges which make Nigeria very unattractive for business.

    “Invariably, Nigeria due to paucity of its shipping regulations, is violating international trade facilitation laws. For instance, Nigeria as a coastal state is to provide port importation support and access to landlocked countries such as Niger and Burkina Faso. Cameroun and Ghana are now providing those services in spite of long distances between the countries,” he said.

    The spokesman of the terminal operators, Mr Bolaji Akinola could not be reached as at the time of filling in this report.

  • GT Bank and First Bank should refund my money

    SIR: This is calling on the Guarantee Trust Bank (GT Bank) Plc and First Bank of Nigeria Plc to refund my money lost to the Automated Teller Machine (ATM) of First Bank in Ile-Ife. I have a bank account with GT Bank. On Wednesday, August 18, I made a withdrawal from the First Bank ATM at Lagere, Ile-Ife, due to inaccessibility to GT Bank ATM, where my account is domiciled. Unfortunately, the ATM did not dispense cash for me, on two attempts. Meanwhile, my account was immediately debited with N40, 000 cash I did not get; even before I could retrieve my Debit Card from the bank ATM.

    This happened on a Public Holiday (Isese Day – Traditionalists’ Day) declared by Osun State government. This made in impossible to immediately lodge a complaint to either GT Bank or First Bank.

    I have since lodged complaint with my bank, GT Bank, but the response is worrying. While, on the basis of constant pressure and after much delay, half of the money was remitted, the delay tactics being used by the GT Bank and First Bank, over the remaining N20, 000 (twenty thousand naira) shows desperate attempt to rip me off of the remaining money. Moreover, the caveat given by the staff that if my money is not refunded within eight working days, it will take eternity to correct the error is discomforting for me. It is already over three weeks since the issue occurred, with my bank not showing any further interest in remitting my money. I have lodged several complaint at the local branch of the bank, and through the customer service channels of the bank, meeting only cold responses.

    I find it very disturbing that a bank that is supposed to protect my account, but failed to do so, will feel uninterested in correcting its lapses, rather, will allow my hard-earned money to be played with anyhow. I suppose as a corporate organization, banks have responsibility towards customers and clients. Unfortunately, they seem to relish the pains customers go through. What if the only money I have is the money these banks are trying to rip me off of?

    This development, which of course many Nigerians face daily, has cast a serious doubt over the feasibility of the cashless policy. If big banks can be found wanting in protecting customers’ accounts in only ATMs, what will happen when there is proliferation of POS machines, where there will be higher volumes of transactions.

    I call on GT Bank and First Bank to immediately refund my money without delay.

     

    • Ibraheem Kolawole

    Ile-Ife, Osun State.

     

  • Refund $262m to Federation Account, Senate panel orders NNPC

    Refund $262m to Federation Account, Senate panel orders NNPC

    The Senate Committee on Finance yesterday recommended that the Nigerian National Petroleum Corporation (NNPC) should refund  $262 million to the Federation Account. The committee said  $665.896m was yet to be remitted by the NNPC.  It  also asked the Nigerian Petroleum Development Company (NPDC) to remit to the Federation Account $447.817,884, being balance of royalty and Petroleum Profit tax (PPT).

    The committee urged the Federal Government to remove fuel subsidy. The committee, headed by Senator Ahmed Makarfi, since was never any unremitted $49.8billion as alleged by the suspended Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi. It stated that the Central Bank of Nigeria, NNPC, Ministries of Finance and Petroleum agreed that the NNPC should account for $20billion. These assertions were contained in the report of the committee, which was laid before the Senate yesterday. The committee noted that the sum of $218.069 million remains unremitted, being Federation Account share from the Third Party Financing arrangement.

    It said that royalties and taxes amounting to $447.827million, being Federation Account share from the $6.815billion liftings by NNPC on behalf of NPDC, remain unremitted. The report urged the Senate to note, among others, that the “total crude oil liftings January to July 2013 was $67 billion and not $65billion as the CBN Governor had presented. There was never any unremitted $49.8billion. All the agencies: CBN, NNPC, Ministry of Finance and Ministry of Petroleum Resources had agreed after reconciliation meeting that $47billion out of the $67billion had been credited to the Federation Account. Amount to be accounted for therefore was $20billion. The sum of $5.254billion PMS subsidy certified by PPPRA, part of the $20billion to be accounted for, was adequately covered by the Appropriation Acts 2012 and 2013.

    “The sum of $3,512billion DPK subsidy certified by PPPRA for the period January 2012 – July 2013, being part of the $20billion to be accounted for, was not appropriated for by the National Assembly. The total sum certified by PPPRA for Kerosene DPK) subsidy not appropriated for by the National Assembly was N353.370billion ($2.148billion) for 2013 respectively, making total for the two years N685.91billion ($4.430billion).”

    The committee report only covers accounting for $67billion crude oil revenue between January 2012- July 2013. “The Committee together with Appropriations Committee will continue its investigation on causes of shortfall in revenues, which covers issues such as SWAP, Strategic Alliance etc, as relates to the petroleum industry as par Senate Resolution S/RES/007/03/13.”  The committee recommended among others that the Senate should accept the subsidy deducted by NNPC from January 2012 – July 2013 of $5.254billion (N823,803billion) since it was certified by PPPRA and appropriated by National Assembly.

    “This is without prejudice to the outcome of the Forensic Audit conducted by the Office of the Auditor-General for the Federation and Pricewaterkhouse Coopers Limited (PWC),” the report added. It said further that: “whereas it may be good policy to encourage indigenous players by giving them greater participation, however continuing transfer of Federation OMLs to NPDC who in turn transfer same to Third Parties with lots of tax and other revenue concessions will deprive the federation of vital income. Therefore, all such transactions should be conducted in a transparent and competitive manner and devoid of revenue concessions. NNPC to refund and remit to the Federation Account the sum of $262million being expenses it could not satisfactorily defend in respect of Holding Strategic Stock Reserve; Pipeline Maintenance and Management Cost; and Capital Expenditure. There is the need for the subsidy regime to be totally discontinued with. All stakeholders should be consulted and carried along as much as possible before abolishing the subsidy.

    “Further legislative action by the Senate should be taken after receipt of the forensic check/audit currently being undertaken at NNPC by the Auditor-General of the Federation and PWC. The NNPC should strictly adhere to international best practices in keeping records. NNPC should not control the revenue account of NPDC in order not to undermine its separate legal status and make accountability more difficult. That PPPRA should henceforth not certify subsidy payments/deductions when there is no appropriation for such.

    “NNPC should always ensure due process and diligence in their operations. The Senate also mandates the Committed to follow up and receive the forensic audit/checks reports from the Auditor-General for the Federation and PWC, study same and report back to Senate.”

    The committee noted that after a careful study of all submissions, it found: “That all parties, i.e. CBN, NNPC, Ministry of Finance and Ministry of Petroleum Resources  had resolved through reconciliation undertaken by them that $47billion had been received into the Federation Account out of the total oil lifting valued at $67billion between January 2012 and July 2013. That on the remaining $20billion to be reconciled, the committee’s findings are as follows:

    “The amount deducted /withheld/expended by NNPC on fuel subsidy between January 2012 to July 2013 was $5.254billion (N823.802billion). This was certified by PPPRA and the National Assembly has appropriated funds in 2012 and 2013 fuel subsidy in the sums of N888.101 billion ($5.737billion) and $971.274 billion ($6.274billion respectively. The amount expended on subsidy on kerosene (DPK) between January to July 2013 was $3.512billion (N543.890billion). This was certified by PPPRA. This was not appropriated for by the National Assembly in both 2012 and 2013 Appropriation Acts.

    “The subsidy deduction in the sum of N180billion ($1.2billion) by NNPC in 2012 bug relating to fourth quarter 2011 was certified by PPPRA. The CBN position was that this deduction needed PPPRA certification. PPPRA verification alluded to on the NNPC subsidy claims are in practice book keeping verification rather than physical verification of products and claims.” The committee said it also found that on Third Part Financing liftings by NNPC which CBN put at $2billion and called for more explanations, as follows: “That the actual value of Third Party Financing lifting was $2,430,750,973. That the amount confirmed by the Accountant-General as having been remitted into the Federation Account  between January, 2012 and July, 2013 was $1,370,172,650.36. That the share belonging to Mobile Producing Nigeria Limited in Third Party Financing arrangement with NNPC confirmed by them orally and in writing was $848,687,581.

    “That the amount confirmed by the Accountant-General of the Federation as having been remitted into the Federation Account in December, 2013 which is outside the period January 2012 – July 2013 was $300,000,000. Therefore, the sum of $218,069,354 remains outstanding or unremitted by NNPC which it explained was in escrow account and will be remitted when it matures.” On the $6billion liftings by NNPC on behalf of NPDC, which CBN observed that part of the revenue belongs to the Federation Account, the committee said it found as follows:

    “NPDC strategic alliance are within the laws of the Federation as submitted by the Attorney-General for the Federation and Minister of Justice. Total liftings during the period in question was $6,815,188,626. Share of revenue to go to the Federation A. Lung was $2,175,635,436. Amount of Petroleum Profit Tax (PPT) confirmed received by Federal Inland Revenue Service (FIRS) from the NPDC and remitted to the Federation Account was $863,000,000. Amount of Royalty confirmed received by Department of Petroleum Resources (DPR) from NPDC and remitted to the  Federation Account was $864,817,552. Royalties and Taxes not remitted to the Federation Account by NPDC within the period under consideration was $447,817,884.”

    On other expenses and crude losses, which the Committee appointed Independent Professional Accountants to audit, the committee said it found as follows: “Crude and refined oil losses were certified by Committee Consultants as $0.809billion against the $0.760 reported by NNPC. Pipeline surveillance cost increased from $2.23million in 2012 to $11.15million in 2013 without corresponding decrease in pipeline oil losses. Actual PPMC’s Staff Salaries and upfront benefit claimed in NNPC submission were overstated by $7.58million and $29.35million for the 2012 and 2013 respectively.”

    The committee gave the amount expended above budgeted or not budgeted for at all in respect of PMS and DPK in 2012 and 2013 as follows: “2012 PMS = N90.693billion ($585million)

    2013 PMS = “Over expenditure expected  since certification of Aug-Dec 2013 was only an interim one. 2012 Kerosene (Expended but not budgeted) N353,370,145,245.07 ($2.282billion),

    2013 kerosene (amount expended but not budgeted) N332,539,367,830.95 ($2.148billion).” In respect of a motion moved by Senator Babajide Omoworare (Osun East) that N700million was expended illegally on Kerosene subsidy daily, the committee said it found  based on PPPRA certification that: “In year 2012 amount expended was N353.370billion which gives N965.49million daily; and

    “In year 2013 (interim) amount expended was N332.539 billion which gives N908.578 million daily.”