FG accuses MDAs, banks of withholding N58bn revenue
JUNE 14, 2013
Minister of Finance, Dr. Ngozi Okonjo-Iweala
The Federal Government through the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Thursday accused ministries, departments and agencies of the Federal Government of colluding with Deposit Money Banks to withhold revenues belonging to the government.
In a statement issued by her Special Adviser on Communications, Mr. Paul Nwabuikwu, the minister said the MDAs had so far succeeded in withholding about N58bn of such funds.
The refusal of the MDAs to remit the said amount into the Consolidated Revenue Fund, according to the minister, is a serious breach of financial regulations.
In view of this, Okonjo-Iweala said the Office of the Accountant-General of the Federation would from next Monday close the accounts of the MDAs found to have violated the law.
She said, “It has come to the attention of the Federal Ministry of Finance that some Federal Government agencies that generate independent revenue, in collusion with some banks, have refused to remit money to the Consolidated Revenue Fund of the Federal Government, which they are obliged by law to do.
“We have identified about N58bn of such money, which rightfully belongs in the CRF. This unwholesome practice has persisted despite the efforts of the Office of the Accountant-General of the Federation to encourage the agencies and the affected banks to do the right thing.”
The minister said in the statement that despite warnings by the government to discourage the practice, the MDAs, through their lawyers, had engaged in all manner of legal subterfuges to frustrate the remittance of the revenues
She said, “Rather than comply, the agencies and banks, through their lawyers, have engaged in all manner of legal subterfuges to ensure that money due to the Federal Government is not remitted.
“The objective of this conspiracy against the national interest is clear: to keep government money indefinitely in accounts earning interests for individuals at the expense of the Federal Government and the Nigerian people.
“This is totally unacceptable and the Federal Ministry of Finance is determined that this practice must end forthwith.
“Starting Monday, June 17, 2013, the Office of the Accountant-General of the Federation, in exercise of its powers under the extant laws and rules, will close the accounts of agencies involved in this practice in all banks.”
The process of systematic closure, she noted would continue until all money that should be in the Consolidated Revenue Fund was retrieved.
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