Reps probe CBN over N1.4tr intervention fund

The House of Representatives yesterday directed its committee on Banking and Currency to investigate the source of funding and disbursement of N1.4trn as intervention funds into Aviation and Banking sectors by the Central Bank of Nigeria (CBN).The resolution came after the parliament adopted a motion sponsored by Rep Uzoma Nkem-Abonta (PDP, Abia).The House also urged President Goodluck Jonathan to forward to it the statutory budget of the CBN and other 31revenue generating agencies of the federal government as part of the 2012 Appropriation bill.Abonta said the CBN granted public funds in the sum of N620 billion to private banks, N500 billion to private manufacturers, N200 billion to the textile industries and another N100 billion to the aviation sector without approval of the National Assembly as enshrined in the 1999 constitution.According to him, apart from these grants by the CBN, the apex bank 'contrary to its core functions and mandate acquired several hectares of land in the Federal Capital Territory for the purpose of investing in the hospitality industry' while also reportedly paying N17 billion for a property that had been sold for N1.8 billion.On the role of Asset Management Corporation of Nigeria (AMCON) in the injection of funds into troubled banks, the House noted that the earlier injection of N821 billion as well as the planned injection of another N3 trillion without approval calls for investigation.Rep Jerry Manwe (PDP, Taraba) asked why some agencies would not subject their budgetary proposal to the National Assembly as provided by the constitution.Rep Adams Jagaba enjoined the committee to look beyond the 'fine semantics that the chief executives would deploy' and look closely at the issues involved, noting that no cost should be spared to engage experts who would scrutinize the transactions closely.Chairman of the House Committee on Appropriations, Rep John Enoh noted that even in the United States of America where the issue of bail out began, 'it was not done without the approval of the parliament. Why is our own different'' he queried.The committee was also mandated to examine all existing laws with respect to banking such as the Banks and Other Financial Institutions Act, the Assets Management Corporation of Nigeria (AMCON) and recommend amendments where necessary.
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