MOTION ON THE URGENT NEED TO INVESTIGATE THE USE OF PUBLIC FUNDS BY THE BANK OF INDUSTRY (BOI) UNDER THE POWER AND AIRLINES INTERVENTION FUND, PAIF AS ESTABLISHED BY CENTRAL BANK OF NIGERIA IN 2013. The House Notes the provisions of Sections 80, and Section 81 of the Constitution of the Federal Republic of Nigeria, 1999. These Sections state that all revenues and monies belonging to the Nigerian Federation must be paid into the Consolidated Revenue Fund of the Federation; and withdrawals therefrom can only result from an Act of the National Assembly. Further notes that as at September 2012, the Central Bank of Nigeria, had disbursed public funds in the sum of about N176 Billion to various banks, through the Bank of Industry (BOI) in Nigeria without approval of the National Assembly under the Power and Airlines Intervention Fund as established by the Central Bank of Nigeria. There are indications that since September 2012, that this practice had continued unabated. Worried, that these disbursements were irregularly made by the BOI to 13 deposit money banks, namely: Access Bank PlC, Fidelity Bank PLC, GTB PLC, Zenith Bank PLC, FCMB, Diamond Bank PLC, Stanbic IBTC, First Bank PLC , Ecobank PLC, UBA PLC, Unity Bank PLC, Mainstreet Bank PLC, and Sky Bank PLC; Further Worried from reports and preponderance of assessment studies that these transactions were not carried out in a manner that is devoid of doubts and, violating due private and public sector lending norms; Concerned that this practice has generated bad-blood among the commercial banks, the banking public, equity investors and depositors; Further concerned that the initiative and its execution if not monitored, is susceptible to widespread impunity, abuse of office, and moral hazards in the entire Nigerian economy; Aware of the functions of the legislature includes; to check waste, fraud and corruption in the use of public funds in all sectors including the banking system and expenditures must have approval of the National Assembly; Worried of the negative effects that this initiative could have on the nation’s rate of inflation, exchange rate, and interest rate; Convinced that this practice is a fore-runner to an imminent wide-spread of impunity in the use of public funds, especially through the banking system; Accordingly Resolves, that: The House of Representatives do mandate an Ad-hoc Committee to: I. Determine the real amount made available by CBN to BOI for this initiative till date and the situation surrounding subsequent releases. II. Investigate and determine the modalities for documentations and approvals regarding all disbursements under the Power and Airlines Intervention Fund, PAIF, by the Bank of Industry, BOI, from period up to September 30th, 2012 to June 30th, 2013, and establish the sources of these funds. III. Investigate, and establish the total sums disbursed through the banking system by the Bank of Industry, BOI, and/or sponsoring commercial bank, under PAIF, from period up to September 30th, 2012, then, to June 30th, 2013. IV. Investigate and determine all businesses and/or other entities that are beneficiaries of the BOI’s disbursements as determined in (11), above; V. Determine the terms and conditions under which the sums ascertained in (11) above were disbursed to the beneficiaries, and establish the status of compliance with these terms and conditions; VI. Determine to what extent all relevant Statutes were complied with in these transactions; and VII. Determine the extent to which the objectives that informed this initiative have been met; and. VIII. Report to the House within 3 weeks. Thank You. Yours Faithfully, Bimbo Daramola
Posted on: Mon, 05 Aug 2013 15:20:56 +0000
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