Crown Agents Bank: Senate gives AGF 60 days to present share certificate

Piqued by the failure of the Accountant General of the Federation to provide a share certificate to authenticate the genuineness of N46 billion federal government investment in Crown Agents Bank and some other financial institutions, the Senate has given a deadline of 60 days to Ahmed Idris to show evidence of the national financial commitment.

The Senate Committee on Public Accounts led by Senator Mathew Urhoghide gave the directive last month before the National Assembly proceeded on its vacation.

Checks revealed that Crown Agents Bank is a United Kingdom (UK) regulated provider of wholesale Foreign Exchange and cross-border payment services connected across the frontier and emerging markets.

According to the 2015 report of the Auditor General of the Federation which was adopted by the Senate Committee on Public Accounts, Crown Agents disposed off investment totalling N3bn while additional investments amounting to N439.7billion were also acquired during the year under review without documentary evidence.

The Audit report further revealed that the Account where the proceeds of the N3bn was credited, was shrouded in secrecy as it was not provided for audit confirmation.

Also stated in the report was that there were no additional investments in the power sector during the year under review, as against N547.8 billion being opening balance in the National Integrated Power Project (NIPP) at the beginning of 2015.

The Auditor reads, ” It was observed that the federal government of Nigeria had an 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 Produce 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 was no additional investment in the power sector during the year under review as against the N547 billion being the 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.”

The Office Accountant General of the Federation in its response to the audit report however offered details of certain lodgement and investment.

“The Accountant-General of the Federation stated that the investment of N10 billion and N16.8 billion in Nigeria Bulk Electricity Trading Plc and Galaxy Backbone Plc, respectively, did not occur in the year 2015 but were investment omitted from the previous statement while the investment of N20 billion in Development Bank of Nigeria was a new Federal government of Nigeria Investment.

“The additional investment of N160 million in Infrastructure Bank was as a result of the subscription of Right Issue declared by the Bank.”

The Committee chairman, Senator Urhoghide rejected the explanation of the Accountant-General of the Federation as he was unable to produce a share certificate.

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