Senate Queries Finance Ministry, NSA over Alleged N7.5bn Secret Withdrawals

Deji Elumoye and Udora Orizu

The Senate Committee on Public Accounts, yesterday gave the Ministry of Finance, Office of Accountant General of the Federation and Office of National Security Adviser (NSA) till Tuesday to explain what they know about the alleged secret withdrawal of N7.5 billion from the two per cent National Automotive Council Design and Development Council (NADDC) Levy Account domiciled with Central Bank of Nigeria (CBN).

The Committee had two weeks ago summoned the affected agencies to appear before it but they failed to appear at the scheduled meeting on Wednesday, April 28, 2021 (yesterday).

The committee had while acting on the report of the Auditor General of the Federation (AuGF) issued a query which reads: “A total sum of N3,836,000,000 was irregularly withdrawn from the 2 percent National Automotive Council Levy Account with the Central Bank of Nigeria, Abuja in two installments of N2,800,000,000 (in 2005) and N1,036,000,000.00 (in 2006) by the Accountant-General of the Federation and the Federal Ministry of Finance as car loan to be granted for the Security Personnel Car Purchase Scheme Loan.

“The transaction was carried out by the Presidency in collaboration with the Bank of Industry (BoI), the Federal Ministry of Finance and the Accountant-General of the Federation without the involvement of NAC, the account owner. However the principal and the accrued interest from the fictitious loan have not been paid back nor are records available on the beneficiaries, agreement documents, moratorium, duration of the loan, the yearly interest rates accruable and how the fund will be paid back by the beneficiary.

“The Director General has been requested to intensify correspondence with the Honourable Minister of Finance, Accountant-General of the Federation and the Presidency to recover the fund (‘loan

Presenting the details of the withdrawal before the Committee yesterday, the Director General of NADDC, Jelani Tukur, said that the agency had already written to Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed and Accountant General of the Federation on the withdrawal of N3.7 billion as loan to NAFCON, withdrawal of N3.8 billion for security personnel car loan scheme and another withdrawal of N2.3 billion as loan to Steyrs Nigeria Limited.

He added that the agency had also written a letter to remind Niger Insurance Plc on the agreement reached on July 9th 2020 as ordered by the Committee.

The first set of letters was written to Minister of Finance and Accountant General of the Federation on 23 April, 2021 and was delivered on 26 April, 2021.

The second set was written to the Minister on 26th of April and was delivered to the Minister on 27th April while that of Accountant General of the Federation were delivered on 26th of April.

In his comments, the Committee Chairman, Senator Mathew Urhoghide, asked all parties involved in the withdrawal of the said money to be present by next Tuesday, adding that those invited should bring evidence of the approval when appearing before the committee.