Audit report: Senate asks BPE to refund N8.7 billion

The Senate has directed the Bureau of Public Enterprises (BPE) to refund the sum of N8,757,353, 089.09 into the Consolidated Revenue Fund (CRF).

The Senate resolution before it proceeded on vacation was sequel to the adoption of the report on its committee on Public Accounts which indicted the BPE of an alleged breach of financial regulations.

According to the Senate Committee on Public Accounts led by Senator Matthew Urhoghide, the BPE perpetrated the alleged financial recklessness between the 2014 and 2015 financial years.

The Committee which equally adopted the audit report conducted by the office of the Auditor General of the Federation gave specific details of lack of diligence in the financial books of the BPE.

One of such violations was the alleged non – remittance of N4, 736, 932, 467.67 dividends received on Federal Government Holdings which was not remitted to the Consolidated Revenue Fund (CRF).

Investigation revealed that the BPE in its defence claimed that dividends received on Federal Government Holdings in the year under review totalling N6, 819, 388, 791.00 were transferred to Treasury Single Account (TSA) in September 2015, the Senate Committee however dismissed the claim as it maintained that there was no documentary evidence to support it.

The Senate Committee report read in part: “The Committee observed that there was no evidence provided by BPE to show that the dividend was remitted to TSA

“Consequently, the Committee recommends that the Bureau remit the sum of N4, 736, 932, 467. 67 to the CRF, evidence of which must be submitted to Auditor General of the Federation and Senate Public Accounts Committee.”

In another query issued by the Auditor General of the Federation report which was sustained by Senate, the BPE was accused of alleged diversion of N2.5billion proceeds of Power Holding Company of Nigeria from two banks: Access and First City Monument Bank to defunct Aso Savings and Loans for the financing of Staff Housing Scheme, contrary to financial regulation 3205.

“Unauthorised transfer of N2.5billion representing PHCN proceeds in Access Bank and FCMB Accounts were diverted to ASO Savings and Loans Plc, as a condition precedent to the Staff Cooperative Mortgage, contrary to Financial Regulation 3205.

“The Committee observed that there was no approval from Debt Management Office (DMO) for the Bureau to secure a loan from ASO Savings just as it was also observed that there was collusion between ASO Savings and BPE.

“Consequently, the sum of N2.5billion with all accrued interest be remitted to the CRF by BPE with evidence of remittance forwarded to the Auditor General of the Federation and Senate Public Accounts Committee.

“All officers involved in the transaction should be surcharged for the loss of government revenue in line with Financial Regulations 3106 and 3115”.

The Bureau as contained in the adopted report was also alleged of non – remittance of N1, 135, 139, 199.77 earned interest on fixed deposits in various commercial banks.

The N1.135billion interest as explained in the query and adopted report was from N19, 774, 272, 998.55 deposited in various commercial banks which BPE management in its response, said it used to settle PHCN Staff severance benefits.

The Senator Urhoghide Committee equally included in its report submitted to the Red Chamber, alleged non-remittance of N387, 771, 741.82million incidental taxes to the Federal Inland Revenue Service ( FIRS) by BPE from the mandatory 10% WHT collected as service charge from different investors in the year under review.

The report states: “The Committee observed that WHT totalling N387, 771,741.82, was not paid to FIRS despite BPE’s promise 5 years ago that all incidental taxes shall be deducted and remitted to FIRS.

“The Committee, therefore, recommends that the sum of N387, 771, 741.82million be remitted into the CRF by the Bureau and evidence of remittance submitted to the Auditor – General for Federation and Senate Public Accounts Committee.”

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Audit report: Senate asks BPE to refund N8.7 billion