September 29, 2022



NIMASA pays regulation agency over $5m for companies not rendered, Senate frets, provides company 48hrs for evidential paperwork


Senate Public Account Committee (SPAC) has given the Nigerian Maritime and Security Company (NIMASA) a 48-hour ultimatum to indicate doc involving cost of $5 million authorized charges for service allegedly not rendered.

The Panel gave the ultimatum Tuesday when consultant of NIMASA, Olamide Olusanya submitted earlier than it that the matter was in courtroom.

However the committee rejected the submission and requested the company to make presentation on the data at their disposal on the cost of authorized charges to the regulation agency.

Olusanya advised the lawmakers that the Company was directed by the then Lawyer Normal of the Federation to pay $5 million for the authorized charges.

Chairman of the committee, Senator Mathew Urhoghide (PDP Edo South), nevertheless, requested him to current any letter mandating NIMASA to pay $5 million for authorized charges.

He responded by saying that the letter in NIMASA’s possession to that impact, was the one from the then Senior Particular Assistant to President on Administration.

Consequently, the committee chairman ordered the company to current paperwork referring to the cost by Thursday this week in figuring out closing resolution to be taken on the matter.

“We’d like the main points of the cost, return to your archives and convey it out.

“Tell us the transaction between your workplace and that of the AGF earlier than you paid the cash,” he mentioned.

One other member of the committee, Senator Abdullahi Danbaba (APC Sokoto South), mentioned there was no foundation for making that cost, including that the cash needs to be recovered from the regulation agency.

The committee had invited NIMASA as much as thrice for the reason on the cost of $5 million as skilled charge and particulars of $9.3 billion loss by the federal authorities, however the company declined the invitation.

See also  Patent drugs retailers interact in scientific providers, sells unauthorised medication in Ibadan – PCN raises the alarm

The report of the Auditor Normal’s sighted by our correspondent revealed that each one efforts by the Auditor Normal of the Federation to see the main points of $9.3 billion loss by the federal authorities for thorough scrutiny was not granted by NIMASA.

The AuGF report mentioned the cash was paid from the corporate’s greenback account of a prime financial institution’s department within the UK.

The question reads: “Audit noticed that the company engaged the service of a authorized agency by way of a letter with reference quantity NIMASA/DG/KP/2014/001, dated twenty fourth January 2014 for the intelligence-based monitoring of world motion of Nigerian Hydro-Carbon and restoration of loss by the Federal Authorities of Nigeria within the sum of USD9.3 billion between 2013 and 2014, with a start-off value of USD5million and 5% of all sums recovered. 

“Cost instruction with reference quantity NIMASA/2007/DFS/WJ/5.500/VOL.11/341 dated April 2014 confirmed that the agency was paid the sum of $4,523,809.52 (4 million 5 hundred and twenty three thousand eight hundred and 9 greenback fifty two cents solely) web as skilled charges from …Greenback account. 

“The naira equal of this quantity was N741,904,761.28 at an change price of N164 to a greenback as of that date. 

“No proof of restoration of both half or your complete sum of the 9.3 Billion US {Dollars} was introduced as on the time of the Periodic Test in February 2018, regardless of the massive amount of cash already paid to this impact. 

“It’s instructive to notice that particulars of the transaction resulting in the lack of USD9.3billion to the Federal Authorities which solely got here to audit consideration by way of the overview of the letter from the company to the authorized agency in order to determine what may have transpired, leading to such an enormous loss weren’t introduced for audit. 

See also  NIMASA DG set for Presidency OFR honour

“Ordinarily, the agency ought to have deducted its charges from the quantities recovered for the FGN, and never obtain charges upfront in lieu of the recoveries. 

“Audit is worried that funds was made for service not rendered and this can be a deliberate try to divert authorities funds for private use. 

“The Director-Normal is required to justify the cost for service not rendered, failing which the sum of N741,904,761.28 needs to be recovered from the authorized agency and paid into the CRF, forwarding proof of cost to the Public Account Committees of the Nationwide Meeting and to the Workplace of Auditor-Normal for the Federation for verification. Sanctions said in FR 3104 ought to apply.

“He’s additionally required to supply particulars of the transaction(s) resulting in the lack of 9.3 Billion US {Dollars} for thorough scrutiny.”