The companies in question, both of which ceased operations just a year after their establishment, NIPOST Transport and Logistics Limited and NIPOST Property, began operations in May 2023 but were dissolved following a presidential directive in May 2024.

During a session of the investigative hearing, BPE’s Head of Finance and Accounts, Imam Rilwan, representing the agency’s Director-General, stated that the sum of ₦10 billion had been allocated to the two companies to facilitate their launch. 

Furthermore, ₦400 million was reportedly used by the Bureau of Public Enterprises for preparatory activities necessary for the companies’ operation, including office rentals and other essential expenditures.

The BPE’s activities were initially approved in 2017, but the funds were only disbursed in 2023. Rilwan explained that the bureau used part of the funds to recover its expenditure, stressing that ₦423 million was specifically allocated to office space rentals for the two entities. 

He further informed the committee that once the companies were dissolved, all assets were transferred to NIPOST management.

Chairman of the committee, Bamidele Salam, pointed out that spending government funds prior to their release contravenes the provisions of the Public Procurement Act. 

Salam directed BPE’s Director-General, Ayodeji Gbeleyi, to appear before the committee with all relevant documents related to the transaction by 11th September.

Similarly, the committee has urged the Joint Admissions and Matriculations Board (JAMB) and the Investments and Securities Tribunal to repay ₦3.46 billion and ₦6.33 million, respectively, to the Consolidated Revenue Fund. 

This request followed the Fiscal Responsibility Commission’s (FRC) reveal that JAMB had failed to remit 50% of its internally generated revenue (IGR) to the government, as required. Instead, the body remitted only 25%, leading to a default.

JAMB’s Director of Finance and Account, Mufutau Bello, speaking on behalf of the Registrar, Prof Ishaq Oloyede, explained that the board does not receive government funding for its capital and overhead expenses, which he claimed exempted them from the 50% IGR remittance requirement. 

This, however, was contested by the office of the Accountant-General of the Federation, which maintained that JAMB is obligated to meet the 50% threshold.

Salam disapproved JAMB’s failure to respond to official correspondence from the FRC regarding its debt, stressing that government agencies must operate transparently through proper channels of communication.

The committee has demanded that the outstanding funds be deposited into government coffers within 30 days.

The post Public Accounts Committee Demands Accountability for ₦10 Billion Spent by Bureau on Two Dissolved Firms appeared first on Tech | Business | Economy.

In a bid to uphold transparency and accountability, the Committee has summoned the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, Finance Minister Wale Edun, and representatives from the Accountant General’s office to appear before the House on February 20th, 2024.

This development comes in the wake of a hearing on Wednesday presided over by Hon. Bamidele Salam.

The session was convened to probe instances of alleged leakages and non-remittance of TSA revenue generated through Remita, originating from a motion co-sponsored by lawmakers Jeremiah Umaru and Jafaru Gambo, both members of the All Progressives Congress.

The Committee Chairman, Hon. Salam, underscored that “the investigation is not a witch-hunt targeting any company but rather a crucial step towards transparency and ensuring accountability for the Federation’s revenue.”

During the hearing, Mr ‘Deremi Atanda, Managing Director of Remita Payment Service Limited (RPSL), clarified that Remita does not manage government revenue. Instead, it serves as an indigenous software and payment gateway, channelling collected funds directly into CBN accounts.

He emphasised that revenue losses cannot occur within the Remita platform itself, with the technology being designed to provide real-time data on the banking statements of all the MDAs using the platform.

Mr Atanda further debunked the allegation of a 1% fee charged by the Federal Government and Remita for the processing of TSA transactions. Referencing the CBN circulars of November 2018 and December 2020, he confirmed that the applicable fee for processing TSA payments was N150 with applicable VAT irrespective of the amount being paid to any Federal Government MDA account at the central bank.

Denying unauthorised fees beyond the N150 per transaction, Mr Atanda affirmed Remita offers free value-added services to the federal government despite foreign hosting costs.

He then clarified that the Banks receive 33%, CBN, 11%,  NIBSS takes 10.5%, and oAGF gets a 2.5% share, while Remita and other stakeholders, including card issuers, collectively share the remaining 43%.

Billy Osawaru, representing Orhionmwon/Uhunmwonde Federal Constituency of Edo State, who initiated the motion to summon the CBN governor and AGF and Minister of Finance lamented that the lack of documents at the investigative public hearing.

He was particularly troubled by the Central Bank’s failure to produce documents, contrasting sharply with Remita, which provided a contract signed by the CBN.

While ruling, Chairman, House Committee on Public Accounts, Hon. Bamidele Salam underscored the need for physical appearance of the Minister of Finance and Coordinating Minister of the Economy, CBN Governor and Accountant General of the Federation before the Committee, on Tuesday, 20th February, 2024.

The post TSA: HoR to Sanction Non-Compliant MDAs appeared first on Tech | Business | Economy.