TSA: NNPC denies hiding funds, claims CBN aware of accounts

The Nigeria Natonal Petroleum Corporation (NNPC) has denied involvement in illegal hiding of funds with some banks in breach of the Treasury Single Account (TSA) policy of the Federal government.

The corporation which was fingered in a recent interim court order for seven commercial banks in Nigeria to remit a total of N2.87 trillion ($793 million) said to have been illegally hidden with them, stated that the Central Bank of Nigeria (CBN) is aware of the funds with the different banks.

Justice Chuka Obiozor of the Federal High Court in Lagos gave the order, thereafter adjourned the matter till August 8, 2017 for anyone interested in the funds to appear before him to show cause why the interim orders should not be made permanent.

The affected banks are the United Bank for Africa Limited, First Bank Limited, Diamond Bank Plc, Fidelity Bank Plc, Skye Bank Plc, Sterling Bank Plc, and Keystone Bank Limited.

But the NNPC, said to own $231.8 million of the said funds, gave a breakdown of the amount with the various banks in statement on Friday by the NNPC spokesman, Ndu Ughamadu.

He stated that the sum of $174.4 million of the corporation was with Diamond Bank; $40.7 million with Skye Bank, and that $16.7 million was in Keystone Bank.

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Ughamadu further stated: “The CBN is aware of the existence of these various investment portfolio with named banks and the apex bank is currently supervising the remittance of the money into the single treasury account.

“NNPC is making this announcement to clarify issue of remittances as they relate to the Corporation, especially as regards some media reports linking us with a recent court order for banks to transfer unremitted money into the TSA.”

The CBN spokesman , Isaac Okoroafor, could not be reached for his comments on the development.

But some CBN officials spoken to said they were hearing it for the first time that such a whopping sum of money had been within NNPC bank accounts, despite repeated warnings to all government agencies not to delay in transferring all cash into the government singe account.

They alleged that the NNPC disclosure could not have been made, but for the court order on seven commercial banks to remit over N2.9 trillion to the account.

A senior supervisor with the CBN disclosed: “We are aware that the commercial banks collect grants, taxes, fees and tariffs on behalf of the government, but not often do they remit such to TSA without being prompted by the their clients, the government agencies, to do so.

“There is no question that more of the banks and agencies will still be exposed because government money are not remitted as at when due and in full”, he said.

He said all guilty banks on non remittance cases would be sanctioned, adding that with the single treasury account in operation, CBN and the government had been able to curtail the rate of public funds diversion.

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