- We Didn’t Conceal TSA Fund—Fidelity Bank
- No Hidden NAPIMS And NNPC Funds In Sterling Bank
The Federal High Court in Lagos on Thursday ordered seven banks in the country to temporarily remit a total of $793,200,000 allegedly hidden with them contrary to the Federal Government’s Treasury Single Account (TSA) policy.
Justice Chuka Obiozor order came on the heels of allegation that the seven banks allegedly kept the said funds illegally in their custody.
Court papers filed by Yemi Akinseye-George (SAN), counsel to the Attorney General of the Federation and Minister of Justice, revealed that a total of $367.4 million was illegally hidden by three government agencies in one of the banks, while the sum of $41 million was illegally kept in a NAPIMS fixed deposit account with Skye Bank.
It stated that $277.9 million was hidden in Diamond Bank; $18.9 million in FirstBank; $24.5 million in Fidelity Bank; $17 million in Keystone Bank; and $46.5 million in Sterling Bank.
A lawyer from Akinseye-George’s law firm, Vincent Adodo, who deposed to a 15-paragraph affidavit in support of an ex parte application filed by the AGF, stated that the seven banks colluded with Federal Government officials to hide the funds in breach of the government’s TSA policy.
According to him, the funds were revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariffs etc accruable to the Federal Government from different ministries, departments, and agencies (MDAs).
He added that the banks had failed to remit the funds to the TSA domiciled in the CBN in violation of the guidelines issued by the Accountant General of the Federation which fixed September 15, 2015 as the deadline for such funds to be moved.
According to him, “The 1st to 7th respondents (banks), in collaboration with and/or collusion with unknown officials of the Federal Government, conspired to disobey the relevant constitutional provisions, thereby depriving the government of the Federal Republic of Nigeria of funds belonging to it, which are needed urgently to fund pressing national projects under the 2017 budget.”
Among the allegedly culpable government agencies is National Petroleum Developing Company.
In his ex parte application on Thursday, Akinseye-George said it would best serve the interest of justice for Justice Obiozor to order the banks to remit the funds to the Federal Government to prevent the funds from being moved or dissipated.
“The withheld funds are urgently required for the implementation of the 2017 budget. The budget has a lifespan of 12 months and we are already in the middle of the year. By hiding these funds, the Federal Government is being forced to borrow money from these commercial banks at exorbitant interest rates,” Akinseye-George added.
Justice Obiozor granted the interim orders and directed that the order should be published in a national daily newspaper.
He adjourned till August 8, 2017 for anyone interested in the funds to appear before him
Meanwhile, Fidelity Bank on Thursday said it was not true that it concealed $24.5 million in contravention of the Federal Government’s Treasury Single Account (TSA) policy.
A statement from Charles Aigbe, Divisional Head, Brand and Communications, said at the commencement of the TSA policy all TSA related accounts held by the bank were fully disclosed to the authorities.
“We do not have any TSA related account with a balance of $24.5 million in Fidelity Bank which has not been remitted to the authorities.
“This matter is coming to us as a surprise. We are therefore reaching out to the Office of the Attorney-General of the Federation to ascertain which account or parastatal they are referring to with a view to carrying out a detailed reconciliation”, he added.
Henry Bassey, Chief Marketing Officer, Brand Management & Communications Group, Sterling Bank Plc, said the bank does not hold any sum in any currency as a deposit from either NAPIMS or NNPC.
“Our attention has been drawn to reports in certain online publications of an order by the Federal High Court sitting in Lagos on Thursday 20th July 2017 mandating Sterling Bank Plc to remit the sum of $46.5 million to a designated Federal Government Asset Recovery Account with the Central Bank of Nigeria. The sum in question supposedly represents undisclosed qualifying funds under the Federal Government’s Treasury Single Account (TSA) policy illegally kept by the National Petroleum Investment Management Services (NAPIMS) and Nigerian Petroleum Development Company (NPDC) both subsidiaries of the Nigerian National Petroleum Corporation (NNPC).
“We have, therefore, written formally to the Office of the Accountant General of the Federation (AGF) demanding a clarification of this claim and a correction in the interest of the general public”, he said.
