FG shuts NERFUND on allegations of mismanaged funds

The Federal Government on Thursday shut down the National Economic Reconstruction Fund (NERFUND) indefinitely following allegations of misappropriation of funds by the  interim management which had distabilised activities there for a while now.

In a memo seen by BusinessDay, Permanent Secretary, ministry of finance, Mahmoud Isa Dutse, asked all staff to proceed on indefinite leave pending when the problems are resolved.

NERFUND was set up to provide needed medium – to long-term financing to viable Small and Medium scale production enterprises. The grand objectives are to increase the quantum of goods and services available for local consumption and export, provide needed employment, expand our production base and add value to the economy.

BusinessDay learnt that the current interim management of the agency had been accused by staff of the fund of gross of mismanagement of funds.

In May, workers of NERFUND disrupted business activities at the headquarters of the agency over allegations of mismanagement and embezzlement of funds which is said to total about N700m.

The Federal Government had through the Ministry of Finance set up a committee to investigate those allegations of corruption.

But the workers later took their protest to the headquarters of the ministry of finance, lamenting the failure of successive governments to make pronouncement over the status of the organisation.

“To all staff of Nerfund: following recent developments in your Organisation  and failure to reconcile the differences between  the executive management, senior management and the entire staff in spite of the ministry’s intervention, the Federal Ministry of Finance has decided to close down your agency with immediate effect to forestall the breakdown of law &order.

“All staff should proceed on indefinite leave pending further instructions from the ministry,” Dutse noted in the statement

When contacted, Festus Akanbi, Special Adviser (Media) to the finance minister, Kemi Adeosun confirmed the developed but could not speak to the issues.