Abuja — Following alleged unauthorised spending of public funds by the Central Bank of Nigeria (CBN), the House of Representatives yesterday mandated its committee on banking and currency to probe the sources of funds, expenditures and interventions of the apex bank and the Asset Management Corporation of Nigeria (AMCON).

The is to determine whether or not the CBN has been operating in conformity with the 1999 Constitution of Nigeria (as amended).

The resolution to conduct an investigative hearing on the activities of apex bank followed a motion brought to the House by Hon. Uzoma Nkem-Abonta, entitled, "Expenditure of Public Funds by the Central Bank of Nigeria, CBN and the Asset Management Corporation of Nigeria (AMCON) without Approval".

In his lead debate on the motion, Nkem-Abonta noted that the CBN had continually granted public funds to various entities and sectors without the approval of the National Assembly, which is constitutionally empowered to scrutinise and approve spending of public funds by agencies of government.

He alleged that the CBN had granted the sums of N620 billion to private banks, N500 billion to private manufacturers, N200 billion to textile industry and N100 billion to Aviation industry as well as other sectors without appropriation.

He also informed the House that contrary to its core functions and mandate, the nation's regulatory bank allegedly acquired several hectres of land in the Federal Capital Territory (FCT), Abuja for purposes of investing in hospitality and property business.

The lawmaker further expressed concern that the CBN was reported to have paid N17 billion for a Nigerian Telecommunications Limited (NITEL) property sold for N1.8 billion.

Abonta also lamented that the CBN injected N620 billion of public funds to rescue private banks in 2009, and in 2011 the apex bank, the Nigerian Deposit Insurance Corporation(NDIC), and the Asset Management Corporation (AMCON) injected another N679 billion to recapitalise the same banks without approval of the National Assembly.

He further alleged that AMCON announced that it would inject another N821 billion to revive some ailing banks again; and equally pledged to inject up to N3trillion without approval.

He also expressed worries that the recurrent and capital budgets of the CBN were not subjected to appropriation or approval by the appropriate authorities as enshrined in the Constitution.


In addition to investigating the allegations against the CBN, Abonta also prayed that the committee on banking and currency should examine existing laws with respect to banking, such as the Banks and Other Financial Institutions Act and recommend amendments where necessary to bring the laws in conformity with the Constitution.

He urged that President Goodluck Jonathan should be requested to include the statutory budget of the CBN and all independent revenue earning agencies of government in the 2012 appropriation proposal as required by the Fiscal Responsibility Act 2007 and the Constitution.

After a vigorous debate on the motion, the Reps unanimously voted that it should be referred to the Committee on Banking and Currency for investigation before reporting back to the House.

http://allafrica.com/stories/201111030770.html

Seem everything and everyone is being or has been probed in Nigeria (even Beaf  )

Yet the bullsh.it and corruption continues to flourish.

House Probes CBN's N1.4 Trillion to Troubled Sectors


Abuja — Worried by the seeming lack of accountability in the disbursement of intervention funds by the Central Bank of Nigeria, CBN, to some troubled sectors in the nation's economy, the House of Representatives, yesterday, directed its committee on Banking and Currency to investigate the source of funding as well as disbursement by the apex bank of funds to the banking an aviation sectors.

This is just as the Senate has also resolved to probe the management of Federal Government pension funds, after condemning the endless subjection of pensioners to verification exercises.

In a motion sponsored by Uzoma Nkem-Abonta, the House also requested President Goodluck Jonathan to include the statutory budget of the CBN as well as other independent revenue earning agencies of government in the 2012 Appropriation as required by the 1999 constitution.

Nkem-Abonta noted that the CBN granted public funds in the sum of N620 billion to private banks, N500 billion to private manufacturers, N200 billion to the textile industries and N100 billion to the aviation sector without approval of appropriate authority as provided in the 1999 constitution.

According to him, apart from these grants by the CBN, the apex bank, contrary to its core functions and mandate, acquired several hectares of land in the Federal Capital Territory for the purpose of investing in the hospitality industry, while also reportedly paying N17 billion for a property that had been sold for N1.8 bllion.

On the role of Asset Management Corporation of Nigeria's involvement in the injection of funds to troubled banks, the House noted that the earlier injection of N821 billion as well as planned injection of another N3 trillion without approval was worrisome and called for investigation.

Senate to investigate Pension Fund

Meanwhile, the Senate has resolved to probe the management of Federal Government pension funds, following the adoption of a motion sponsored by Senator Heineken Lokpobiri and 25 others.

The Senate also urged President Jonathan to immediately stop verification exercises for pensioners which has brought untold hardship to most of the pensioners.

Senator Lokpobiri while moving the motion observed that pensioners are being subjected to degrading inhuman treatment in the process of verifications for their entitlements.

He further noted that pensioners were often made to loiter and sleep in public places for days for verification exercises that had become endless and persistent.

Senators were in support of the motion, even as they blamed the problem on corruption in the management of the pension scheme.

The Senators also called for the automation of the scheme to eliminate corruption, and make the process faster and efficient.

Senator Smart Adeyemi in his contributions decried management of pension schemes noting that the pains inflicted on pensioners was a sad tale for coming generations.

He said, AThe problem with our pension scheme is that of corruption, misplacement of priorities and misappropriation of funds,@ adding that the problems with the scheme would discourage people from being patriotic if something drastic was not done to change the situation.

Senator Ayogu Eze also contributing said it was inhuman to constantly subject very old people to long travels from their villages to the city for verification, making them to pass through very harrowing experiences.

Adding his voice to the poor pension management, Senator Barnabas Gemade called for the adoption of Independent National Electoral Commission, INEC process where all voters were registered in the registration of pensioners.

He said, AIt is absolutely in human to engage people of 80 years and above to stand in line for many hours in the name of verification. If we can go and register voters in every village, we can also go and register every pensioner in the villages and local governments.

Senate President, David Mark, while ruling agreed with Gemade, and noted that the system of registering voters could be adopted in the verification of pensioners.

He said, the problem is not with the payment of the pensions, but the sufferings they go through to get paid. If INEC can register millions of Nigerians for elections, I don=t see why we cannot adopt the same method in the verification of our pensioners

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