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Reps frowns at over 5 years unaudited account of federal mortgage bank, TETFUND

The House of Representatives Committee on Public Accounts has expressed concern over the five years unaudited accounts of the Federal Mortgage Bank of Nigeria (FMBN) and the Tertiary Education Trust Fund (TEFFUND), describing it as worrisome and gross violation of the 1999 constitution, as amended.

The Committee also uncovered and lamented that the Central Bank of Nigeria CBN and the Nigeria Social Insurance Trust Fund (NSITF) were yet to pay up their 30 per cent and 20 per cent equity capital as shareholders of the bank as stipulated by the FMBN establishment Act.

The Chairman of the Committee Mr Oluwole Oke and other lawmakers at an investigative hearing on Audit queries by the office of the Auditor-Genaral of Federation on Ministries Departments and Agencies (MDAs) of the Federal Government had queried the Management of the bank under its Managing Director, Mr Ahmed Dangiwa and other officials of the agency on the five years unaudited accounts.

Mr Oke lamented that the audit queries raised by the Office of the Auditor-General of the Federation on the MDAs had shown that the revenue profile of the agencies was on the decline as earlier pointed out by the Ministry of Finance.

He expressed dissatisfaction over non-compliance of the agencies to the extant provision of the laws on audited accounts despite having made previous appearances   to the Committee on the contentious issue.

The committee chairman wondered why the Central Bank of Nigeria CBN and the Nigeria Social Insurance Trust Fund NSITF had not pay up their 30 per cent and 20 per cent share of the mortgage bank’s equity in which the Federal Government was 50 per cent share.

The Managing Director of the bank, Mr Ahmed Dangiwa, who explained that the Federal Government had paid N60 million out of the N1.5 billion being its share of equity in the bank informed the committee that the audited accounts were ready but was only awaiting agency’s board approval.

He explained that the present management of the bank had inherited the five years unaudited accounts from their predecessors in office adding that they have made efforts to clear the outstanding.

On the percentage equity shareholders capital in the mortgage bank, he said that the Federal Government owns 50 per cent, CBN owns 30 per cent while the Nigeria Social Insurance Trust Fund NSITF’s share is 20 per cent.

While ruling on the matter, the Chairman of the Committee said that the Clerk should write to the appropriate authorities in the CBN and NSITF asking them to pay up their equity shareholding in the mortgage institution.

IBRAHIM SHEHU

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