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PEF will definitely be held accountable for interest on N34bn in fixed deposit — Senate

THE Senate has vowed that the Petroleum Equalization Fund, PEF, now  Nigeria  Midstream and Downstream Petroleum Regulatory Authority, NPRA, must account for the interest that accrued to N34 billion placed in the fixed deposit.

PEF will definitely be held accountable for interest on N34bn in fixed deposit — Senate

Senator Matthew Urhoghide(PDP, Edo South) led Senate Committee on Public Accounts accused the agency of not remitting fully the interest accrued from N34 billion in a fixed deposit account.

Addressing newsmen on the matter, Senator Urhoghide, who noted that the agency must present evidence of remitting N182 million accrued from the N34 billion placed in fixed deposit, said that whether the agency changes name or not, the agency must appear before the committee to account for interest accrued to N34 billion in the fixed deposit account.

According to him, PEF must account for the outstanding of N100 million that is remaining in the interest accrued to N34 billion placed in a fixed deposit account, or else the committee would sustain the position of Auditor General of the Federation against the agency.

But, the agency claimed it had remitted the interest to the Federation Account in a letter to the committee.

The query read, “At the  Petroleum  Equalization  Fund  (Management)  Board,  it was revealed that in 2015,  the board placed the sum of  N34,003,057,534.22 in fixed deposit accounts in various banks, which yielded interest in the sum of  N182,400,810.74.

“However,  the board remitted only N82,263,824.31 to the  Consolidated  Revenue  Fund, leaving a  balance of  N100,136,986.43 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 a satisfactory  reply  to  an  audit  query  within  seven 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  Commission, ICPC.”

Updated: December 27, 2021 — 12:14 pm

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