The Senate Committee on Public Accounts is not taking it lightly with management of the now scrapped Petroleum Equalisation Fund (PEF) over non-remittance of interest from N34billion it deposited into a fixed account in 2015.
Senate’s searchlight on interest accrued from the account was based on query issued to that effect by the Office of Auditor General of the Federation in the 2016 Audit report.
The Auditor-General had in the query said: “At the Petroleum Equalization Fund (Management) Board, it was revealed that in 2015, the Board placed the sum of N34,003,057,534.22 (Thirty-four billion, three million, fifty-seven thousand, five hundred and thirty-four naira, twenty-two kobo), in fixed deposit accounts in various banks which yielded interest in the sum of N182,400,810.74 (One hundred and eighty-two million, four hundred thousand, eight hundred and ten naira, seventy-four kobo).
“However, the Board remitted only the sum of N82,263,824.31 (Eighty-two million, two hundred and sixty-three thousand, eight hundred and twenty-four naira, thirty-one kobo) to the Consolidated Revenue Fund, leaving a balance of N100,136,986.43 (One hundred million, one hundred and thirty-six thousand, nine hundred and eighty-six naira, forty-three kobo) unaccounted for.
“This act is a contravention of the provision of Financial Regulation 222 which stipulates that “Interest earned on bank accounts must be properly classified to the appropriate revenue head of Accounts and paid to the Consolidated Revenue Fund”.
“The Executive Secretary should remit the outstanding interest yield of N100,136,986.43 immediately to the Consolidated Revenue Fund and furnish evidence of remittance for my verification.
“Failure to comply should attract appropriate sanctions in line with Financial Regulation 3112 which stipulates that “where an officer fails to give satisfactory reply to an audit query within 7 days for his failure to account for government revenue, such officer shall be surcharged for the full amount involved and such officer handed over to either the Economic and Financial Crimes Commission (EFCC) or Independent Corrupt Practices and Other Related Offences Commission (ICPC).”
Consequently, the Senate Committee on the strength of the query summoned management of PEF to appear before it but received no response since the agency had been scrapped in line with provisions of the recently signed Petroleum Industry Act ( PIA) .
But the committee chaired by Senator Mathew Urhoghide (PDP Edo South), said since government is a continuum, the management of Nigeria Midstream and Downstream Petroleum Regulatory Authority, PEF transformed into should appear to defend the query.
Addressing journalists on the issue on Friday, Urhoghide said that the agency must present evidence of remitting N182 million accrued from N34billion placed in fixed deposit.
He added that whether the agency changes name or not, the agency must appear before the committee and account for interest accrued to N34billion in the fixed deposit account.
“PEF or whatever name called now , must account for the outstanding of N100 million that is remaining in the interest accrued to N34billion placed in the fixed deposit account or else the Committee will sustain the query issued it by the Auditor General of the Federation.
“The claim by the now scrapped agency through a letter to the Auditor General that interests accrued from the N34billion have been remitted I to CRF is not tenable and convincing enough
“Required documentary evidence must be presented to both the committee and the office of Auditor – General.
“The Committee clerk is hereby directed to write management of the new body for appearance in the second week of January next year “, he said.
