Reps probe N11bn unrecovered loan

The House of Representatives Committee on Public Accounts on Thursday commenced investigation into over N11 billion unrecovered loan by Bank of Industry (BoI).

Worried by the failure of the management team to the invitation sent to its Managing Director, Olukayode Pitan, the Committee chaired by Kingsley Chinda threatened to arrest if he fails to appear within 24 hours.

Chinda (PDP-Rivers) and members of the Committee had expressed displeasure over the response of Taiwo Kolawole, BoI’s Chief Financial Officer that the Bank’s MD could not make it to the meeting because he was already scheduled for another meeting with some executives of the Enugu State Government, adding that the meeting was too late for the MD to postpone.

Kolawole who confirmed the receipt of the Committee’s second invitation on the 28th July, 2017, argued that the meeting with the Enugu government officials was rescheduled before the committee’s invitation got to them.

In a swift reaction to his submission, Gabriel Onyewife (APGA-Anambra) who accused the BoI MD of disregard for Parliament, said: “his first explanation was annoying as it was insulting to the effect that the meeting with the Enugu Government officials supercedes that with the National Assembly.”

To this effect, Onyewife who raised a point of order, urged the Committee to compel the BOI Managing Director’s appearance.

While ruling, Chinda noted that “over N8 billion loan given out have not been recovered and the bank is not doing anything about it according to the query.

“The second query is on another N2 billion unexplained expenditure.

“Considering the enormity of the sum involved, over N11billion as contained in the query by the AuGF, and considering the fact that the MD has given more importance to a meeting with Enugu State Government, we are tempted to take action as appropriate.

“But in the spirit of fair hearing, we want to give him another opportunity so that he can appear before us tomorrow, the 18th of August 2017 by 11 am, failure of which we will order for his arrest.”

In a related development, the Committee also ordered the managing Director of the Bank of Agriculture, Kabir Mohammed Adamu to re-appear before it within 24 hours to respond to queries against the organisation.

Emmanuel Ameh, Executive Director, Regional Banking at the Bank had told the committee that his MD who came to the National Assembly earlier had to leave, following information that officials of the Islamic Development Bank, the African Development as well as the World Bank were coming to see him over loan facilities the bank is seeking.

The committee which expressed disatisfaction with the development therefore asked the bank’s representatives to step aside and remain within the premises pending when the MD got back from the said meeting to respond to the queries.

The Managing Director who is just a few months in office however could not make it back before the committee adjourned sitting for the day.

The Chairman, Kingsley Chinda however told Indepedent later that the BOA was asked to report to the committee today by 10am having listened to the MD who later came to appeal that he’d be given another opportunity.

“I asked them to come back tomorrow (today) because we had adjourned and I could have taken them alone in my office,” said.

‎The five queries as issued by the Auditor General of the Federation in its report before the committee covered a period between December, 2014 and 2015 respectively.

 

KEHINDE AKINTOLA, Abuja