• Wednesday, May 29, 2024
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Auditor-general accuses BPE officials of diverting N2.5bn PHCN fund

Auditor-general accuses BPE officials of diverting N2.5bn PHCN fund

The senate committee on public account has been told how officials of Bureau of Public Enterprise (BPE) allegedly diverted N2.5 billion from the proceeds of the defunct Power Holding Company of Nigeria (PHCN) to buy properties in Aso Savings.

The alleged diversion is contained in the report of the Auditor-general of Federation ( AUGF) submitted to the senate committee on public account.

Chairman of the senate committee, Mathew Urhoghide who was visibly angry, demanded an explanation from the representative of the director-general of BPE, Ignatius Ayewoh, who is the director of finance and general services.

But Ayewoh said the bureau did not obtain any approval from Debt Management Office (DMO).

Urhogbide said the committee would ask the Federal Government to recover the money in Aso Savings and Loans.

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BPE in a written submission to the committee had said, “This was a loan guarantee, but a fund placement at 5 percent interest rate. It was used to negotiate a single digit interest rate to finance the bureau’s staff housing scheme.

“There is an approval from the office of Accountant- General of the Federation authorising the bureau to establish a relationship with the organisation.

“Aso Savings and Loans has since September 2015 not be able to implement the directive by BPE to remit deposit to TSA.

A committee chaired by Vice President Yemi Osinbajo is currently trying to resolve the issue with Aso Savings and Loans Plc and about 16 MDAS are affected.