Missing N7.935bn: Reps query Nigeria Customs, CBN, FIRS

…Officials return tomorrow for reconciliation

From Ezeh Chibuoke

The House of Representatives Committee on Public Account yesterday queried the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) over the discrepancy of N7.935 billion in the funds generated and remitted to the Federation Account in 2007.

The committee also sought for explanation in the delay for five months in the remittance of N14.210 billion import duty lodged into CBN Port Harcourt by the Customs Area Command.

The money was generated in August 2006, but was not transferred to the Federation Account until January 2007. Speaking when the Accountant-General of the Federation, Auditor-General of the Federation, CBN officials led by the Deputy Governor , Mr Tunde Lemo, Customs and FIRS officials appeared before the committee , Chairman of the panel, Solomon Abiola, said the agencies had questions to answer.

He insisted that the audit examination of the records maintained for the Federation Account at the Nigeria Customs Service, showed that the total amount remitted by the service for 2007 was N233.430 billion, while the total fund received by Federal Accounts and Allocations Committee (FAAC) was N241.366 billion, thereby resulting in a discrepancy of N7.935 billion.

He said: “ this implies that the actual amount of revenue generated and remitted by the NCS was less than the amount presented to FAAC for sharing as indicated by the CBN “ Hon. Abiola directed that the acting Chairman of the FIRS, Alhaji Mashi, Mr. Tunde Lemo, the Accountant-General of the Federation, Jonah Otunla should work with the Public Accounts Committee led by Hon.

Pally Iriase to reconcile the differentials and report back tomorrow. Lemo, who represented the CBN governor at the investigative hearing, had agreed with Adeola that there was genuine reason to worry that these issues took place in 2007 and many years after, they were yet to be resolved. Exonerating his agency of blame, FIRS chairman told the committee that both the FIRS and CBN had reconciled on some money which was at the centre of the controversy.

Specifically he said that the apex bank and FIRS reconciled on the N582 million difference and discovered that it was only N261 million resulting from double entry error. Not satisfied with the explanation, Abiola asked for investigation into the what he called the missing money.

On the transaction by the Nigerian National Petroleum Corporation (NNPC), the PAC chairman revealed that it was observed from the component statements of 2007 at the Office of the Accountant-General of the Federation, that Joint Venture Cash Calis (JVCs) of the sum of N549 billion Excess Crude of the sum of N1.168 trillion and Petroleum Product Subsidy of the sum of N236.641 billion were deducted from proceeds of crude oil sales, while the sums of N25.951billion and N62.542billion were excess proceeds deducted in respect of Petroleum Profit Tax (PPT) and Royalties respectively.

According to him, these deductions were made before the net revenues were paid to the Federation Account contrary to the provisions of Section 162(1) of the 1999 Constitution of the Federal Republic of Nigeria which requires all such revenues to be paid directly into the Federation Account.

Other queries expected to be addressed by the CBN include the N124. 673 million allegedly deducted from the Federation Account and described as “Funding of FAAC” but the details of the disbursement of the funds were not made available for audit examination.

The CBN is to also explain the States’ Contractual Obligation in which the sums of N210 million and N13.341 million were paid in March and April, 2007 respectively as contractual Obligations to a contractor by the order of the Governor of Anambra State. Also discussed at the hearing was N1.257 trillion, which was credited to the Excess Crude Account (Export and Domestic Crude Oil Sales), Excess Royalty and Excess PPT in 2007 but only N708.934 billion was distributed by FAAC to the beneficiaries, leaving a balance of N548.071 billion. The CBN is to produce the records for audit verification.

The committee Chairman said, “audit scrutiny of the CBN Statements on Federation Account revealed that sums totalling N5,080 billion were paid in May, 2007 as monthly allocations to Enugu, Bauchi and Kebbi states from the Federation Account. The description of this payment shows that VAT and Domestic Excess Crude Revenue Allocations form part of this amount.

Moreso, records on the detailed amounts paid for both VAT and Domestic Excess Crude Revenue allocations were not made available for audit verification. The anomalies have been conveyed to the Accountant-General of the Federation.

He was asked to reconcile the CBN statements with that of FAAC; maintain a cash book for all transfers to the Excess Crude Account and payments made therefrom and prepare Monthly Transcripts “of Account for the Excess Crude Account.”