The Senate has uncovered irregularities in the N1.1trillion Federal Government investments in Crown Agents Bank and some other financial institutions in the country.
Crown Agents Bank is a United Kingdom (UK) regulated provider of wholesale foreign exchange and crossborder payment services connected across frontier and emerging markets.
In the 2015 Auditor-General report, adopted by the Senate last month before proceeding on annual recess, the Accountant-General of the Federation (AGF), was accused of failing to present a share certificate to authenticate the genuineness of Federal Government investments in Crown Agents Bank and other financial institutions in the country.
The irregularities as revealed by the audit report, was attributed to the failure of the Accountant-General of the Federation to provide share certificate to authenticate genuineness of N46 billion investment in 2015, and written authority for the disposal of the sum of N134.3 billion as the account into which the proceed credited was not provided for audit.
The report also revealed that there were no additional investments in the power sector during the year under review, as against N547.8 billion being the opening balance in the National Integrated Power Project (NIPP) at the beginning of 2015.
It further stated that Crown Agents disposed of investments totalling N3 billion while additional investments amounting to N439.7 billion were also acquired during the year under review without documentary evidence.
Account where the proceeds of the disposal of the sum of N3 billion credited, was not provided for audit confirmation.
The report also noted that about N239 billion investments was overcast recorded in the 2014 investment. Part of the audit report reads: “It was observed that the Federal Government of Nigeria had additional investment in the sum of N46.3 billion and total disposal of investment of N134.3 billion as at year ended, 2015.
The shares certificate to authenticate the genuineness of the additional investment of N46.3 billion were not produced for audit.
“Also, there was no written authority for the disposal of the sum of N134.3 billion as the account into which the proceeds were credited was not provided for audit confirmation.
“There were no additional investments in the power sector during the year under review as against the N547 billion opening balance of investment in the National Integrated Power Project (NIPP) at the beginning of 2015.
“The Accountant-General of the Federation was required by the Auditor-General to provide the authorities for all the additional and disposal of investment during the year under review and provide the share certificate of all the additional investment for audit verification.”
However, the Office of the Accountant-General of the Federation, in its response said: “The Accountant- General of the Federation stated that the investments of N10 billion and N16.8 billion in Nigeria Bulk Electricity Trading Plc. and Galaxy Backbone Plc., respectively, did not occur in year 2015 but were investments omitted from previous statement while the investment of N20 billion in Development Bank of Nigeria was a new Federal Government of Nigeria Investment