The Senate has summoned the Minister of Finance, Ahmed Zainab and the Accountant General of the Federation, Ahmed Idris over alleged secret withdrawal of N7.5 billion from the 2 per cent National Automotive Council Levy Account domiciled with Central Bank of Nigeria (CBN).
The Chairman, Senate Committee on Public Accounts, Senator Matthew Urhoghide, Peoples Democratic Party, PDP, Edo South disclosed this on Wednesday in Abuja following the revelation by the Director General of National Automotive Council, NAC, Aminu Jalal, who appeared before the Committee earlier.
Jalal had told the lawmakers that the first N3.8 billion was withdrawn in two instalments of N2.8 billion in 2005 and N1 billion in 2006.
The Auditor-General of the Federation had said in a report that the second N3.7 billion was withdrawn between March – December 2000 in three separate payments of N725 million, N1 billion and N2 billion.
The Director General of National Automotive Council, has informed that the withdrawal was made the money was withdrawn without the knowledge of the agency, According to J¹alal, the Agency has been writing to the Accountant General and Ministry of Finance on the need to refund the money but there was no response. Not happy with the development, Senate Committee on Public Accounts then resolved to summon the Minister of Finance and the Accountant General of the Federation to give explanations on the fund.
The query read: “A total sum of N3,836,000,000.00 (Three billion, eight hundred and thirty-six million naira) was irregularly withdrawn from the 2% National Automotive Council Levy Account with the Central Bank of Nigeria, Abuja in 2 installments of N2,800,000,000 (in 2005) and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, 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’).” On the N3.7 billion, the report said the sum was “irregularly withdrawn from the 2% National Automotive Council Levy Account with the Central Bank of Nigeria between March-December 2000 in 3 separate payments of N725,000,000; N1,000,000,000 and N2,000,000,000 as ‘loan’ to NAFCON vide the Accountant General of the Federation internal memo to the Permanent Secretary, Budget Office of the Federation Ref No: DD/(R&F)22.Vol. 1158 of 27/5/2003. The ‘Loan’ Principal and the accumulated interest are yet to be paid since the year 2000.”