The House of Representatives has absolved the Nigerian Ports Authority, Mr. Mohammed Bello-Koko of N178 billion bad debt allegations contained in the 2019 audited financial statement of the authority.
The Chairman of the House Committee on Public Petitions, Hon. Mike Etaba dismissed the allegations at a public hearing held at the National Assembly Complex, Abuja yesterday.
The Forum of Non-governmental Organisations in Nigeria had alleged that the NPA and its managing director were complicit in the provision of N178 billion for bad debt in NPA audited financial statement.
At the resumption of the public hearing yesterday, however, the forum failed to appear before the committee to defend the allegations brought against the NPA and its managing director.
Disappointed by the absence of the forum, Etaba dismissed the petition for lack of merit, saying the petitioner had failed to appear before the committee to prove its allegations against the NPA and managing director.
The chairman said: “This is the sixth time the House Committee on Public Petition is sitting with respect to N178 billion bad debt allegations brought against the authority. The petitioner has not been in this place. The case is hereby dismissed.”
As contained in its petition, the forum had requested that the management of NPA be invited to address the growth of alleged debt from N135 billion in 2018 to N173 billion in 2019.
The petition in part reads: “Our attention has been brought to the 2019 audited financial statement of the authority with special reference to Trade Accounts Receivable and the huge provision made for bad and doubt debts.
“Whilst we note that the position in 2019 would significantly change by now, the poor quality of NPA’s trade receivable account is alarming and require urgent attention.
“It is our great concern that NPA, a very important and strategic government agency with the responsibility of revenue generation will allow poor management of accounts receivable to the extent a substantial portion of it is imported.
“The incredible debt profile and provision of important as demonstrated in 2019 audited financial statement is antithetical to public growth and inimical to public interest.
“The table below is an analysis of debts due from third parties, exclusive of other inter-governmental agency valued at N237 billion. Out of this amount, a whopping sum of N173bn is doubtful of recovery and this represent a staggering 73 percent of the total involved.”
The forum therefore prayed that the management of NPA should be invited to address the growth in doubtful debt from N135bn in 2018 to N173bn subsequent year.
It further prayed that the NPA should be queried on the reason for the 73 percent for impairment and sought an explanation on account balances, which have remained stagnant for over 365 days
The forum also demanded that the management of the NPA be called to release the list of the debtors involved with the hope that this committee will also publicly call these debtors and use all lawful means to make them pay these debts
It prayed that the NPA should be instructed to do all things within its lawful means to recover the debts without further delay, within the current accounting year without fail.
