Ad-hoc Committee investigating the activities of federally owned Development Finance Institutions (DFIs) has issued 11-day ultimatum to Federal Mortgage Bank of Nigeria (FMBN) and Bank of Agriculture (BoA) and other DFIs to submit their audited accounts since 1999 to date.
Other DFIs invited to submit memoranda to enable it conduct its investigation are: Nigerian Export Import Bank (NEXIM); Bank of Industry (BoI); National Economic Reconstruction Fund (NERFUND) and The Infrastructure Bank. The directive was contained in a letter with Ref. No.
NASS/8HR/ADC/09 dated December 9, 2016, signed by Emeka Anohu, chairman of the ad hoc committee sent to the heads of the affected institutions.
According to Anohu, management teams of the DFIs are to submit: breakdown of the budgetary allocation appropriated for the bank on a year by year basis since 2009; breakdown of the actual budgetary releases from 199-date; detailed breakdown of both recurrent and capital expenditure from 1999-date.
They are also expected to submit detailed breakdown of the loans granted from the DFIs and beneficiaries of such loans from 1999-date; detailed breakdown of projects funded by such loans from 1999-date; analysis of the project vis-a-vis their relevance to National economic development whether they are in conformity with the spirit and intent of the enabling Acts.
The committee also requested for the financial statement of the DFIs which include: report of the audited accounts of the DFIs and copies of the auditors’ report on the accounts audited from 1999-date; nominal roll of the DFIs that reflect rank and geopolitical spread of the DFIs; detailed breakdown of all funds – local and foreign received by the DFIs from 1999-date; detailed breakdown of all matching and managed funds from 1999-date and all other documents or information that would assist the Committee in its assignment.
The committee also wants the DFIs to provide details on how they disbursed the Central Bank Nigeria (CBN) intervention funds to them from 1999-date.
The Committee also asked the Small and Medium Enterprises of Nigeria (SMEDAN) to submit its audited account since 1999 to date.
According to Anohu, the investigative public hearing was sequel to the resolution of the House in line with section 88 of the 1999 Constitution (as amended).
Anohu, who spoke at the inauguration of the committee, described the performance of the DFIs as embarrassing and tragic.
While he expressed displeasure over the utilisation of several trillions of naira appropriated for the operations of the DFIs over the past decade, the lawmaker vowed, “There will be no sacred cows in the quest to reposition the DFIs.
“Decades after the institutions were established and despite the huge budgetary provisions made for the agencies over the years, their impact in stimulating economic renaissance was yet to be felt.
“These institutions were charged with the primary mandate of providing long-term financing to the industrial and productive sectors of the economy and were designed to finance the establishment of large, medium and small industries as well as facilitate the expansion, diversification and modernisation of the existing concerns,” he said.
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