The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN) Mr. Olayemi Cardoso “to account and explain the existence of over N100 billion worth of ‘dirty and bad debts’ and ‘other large amounts of cash awaiting audit’ stashed in various CBN branches.”
SERAP, which made the call through a statement issued by its deputy director, Kolawole Oluwadare on Sunday, said the allegations were documented in the latest annual report recently published by the Auditor General of the Federation.
SERAP also urged him to “explain the existence of a budget of N7.2 billion for the construction of the CBN Dutse branch in 2010 and a budget of N4.8 billion for the renovation of the CBN Abeokuta branch in 2009, and to publish the names of contractors who raised money but failed to complete project.”
SERAP urged him “to explain the existence of the alleged missing loan of N1.2 billion given to Enugu state government in 2015 and loan of N1.9 billion given to Anambra state government between 2015 and 2016 and to fully recover and deposit the funds public to the treasury.”
SERAP further urged Cardoso “to refer to this gross violation of the 1999 Nigerian Constitution [as amended]The CBN Act and the country’s national and international anti-corruption obligations to the appropriate anti-corruption agencies to conduct investigations and prosecutions, if necessary, and recovery of public funds.”
In a letter dated June 29, 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organization said: “These grim allegations from the Auditor General demonstrate a gross violation of the public trust, the provisions of the Nigerian Constitution, the CBN Act and national laws. and international anti-corruption obligations.”
SERAP stated, “These serious violations also reflect the CBN’s general failure of accountability and are directly related to the agency’s failure to comply with the Law and uphold the principles of transparency and accountability.”
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According to SERAP, “These gross violations have seriously undermined the CBN’s ability to effectively discharge its statutory functions and public confidence in the bank. The CBN must commit to transparency and accountability in its operations.”
The letter reads in part: “We would appreciate it if the suggested steps are taken within 7 days of receipt and/or issuance of this letter. If we have not heard from you by then, SERAP will take all appropriate legal action to compel you and the CBN to comply with our request in the public interest.”
“Explaining the whereabouts of the missing public funds, publishing the names of those allegedly responsible, and ensuring that they are prosecuted and recover the lost public funds in full will serve the public interest and end the impunity of the perpetrators.”
“According to the 2020 audit report recently published by the Auditor General of the Federation (AGF), the Central Bank of Nigeria (CBN) since 2017 has deposited over N100 billion [N100,672,999,000.00] ‘dirty and ugly banknotes,’ and other large amounts of cash awaiting inspection at various CBN branches.”
“In August 2010, the CBN also reportedly budgeted N7.2 billion [N7,286,500,476.76] for the construction of the Dutse branch building. The Dutse branch was scheduled to be completed in November 2012 but the contractor failed to complete the project.”
“The Auditor General was concerned that the project might be ‘awarded to an incompetent contractor,’ and wanted ‘the work to be completed without further delay.’”
“The CBN in 2009 reportedly budgeted N4.8 billion [N4,812,608,028.10] to renovate the CBN Abeokuta branch office. The Abeokuta branch office was supposed to be completed in 2012, but the contractor failed to complete the project.”
“There has been no significant renovation work at the site, several years after the proposed completion date. The Auditor General is concerned that the project may have been ‘awarded to an incompetent contractor,’ and wants ‘the work to be completed without further delay.’”
“The CBN also reportedly failed to explain the loss of outstanding loans amounting to N1.2 billion [N1,294,453,887.83] given to the Enugu state government in 2015 and an outstanding loan of N1.9 billion [N1,994,383,561.64] given to the Anambra state government between 2015 and 2016.”
“The Supreme Audit Agency is concerned that public funds may have been misappropriated. It wants the money returned in full and deposited into the state treasury.”
“Article 708 of the 2009 Financial Regulations provides that, ‘under no circumstances shall payments be made for services that have not been performed or for goods that have not been supplied.’”
“Section 35(2) of the Government Procurement of Goods/Services Act 2007 provides that, ‘once the mobilization fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate.”
“Article 16 paragraph (6) of the Government Procurement of Goods/Services Law states that ‘every procurement participant must have the technical and professional capabilities required to carry out certain procurements, have financial capabilities, and have adequate human resources to carry out obligations in accordance with the procurement contract.’”
“SERAP notes that Article 15(5) of the Nigerian Constitution requires public institutions to eliminate all corrupt practices and abuse of power.” Article 13 of the Constitution imposes a clear responsibility on the CBN to comply with, comply with and implement the provisions of Chapter 2 of the constitution.”
“Article 3112(ii) of the 2009 Financial Regulations stipulates that, “If a public official fails to account for state revenue, the official will be subject to a fine equal to the amount involved and the official will be handed over to the Corruption Eradication Commission and Economic Crimes (KPK) or the Corruption Eradication Commission and Other Related Crimes (KPK).”
“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the CBN to ensure proper management of public affairs and public funds.”
“Nigerians have a right to know where public funds are. Taking the recommended steps will advance the right of Nigerians to restitution, compensation and assurances of non-recurrence.”
“The Nigerian Constitution, the Freedom of Information Act, and the country’s anti-corruption and human rights obligations are based on the principle that citizens should have access to information about the activities of their public institutions.”
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