By Eze Okechukwu & Ubong Ukpong, Abuja

The Senate yesterday revisited an alleged uneven disbursement of intervention loans to the tune of N483 billion by development financial institutions among the six geopolitical zones in the country.

The Senate raised a seven-man an Ad- hoc Committee to carry out a holistic investigation into the matter and report back in four weeks for further legislative action.

Chairman of the Committee is Senator David Umahi.

This followed the debate of a motion by Senator Ali Ndume (Borno South), which was supported by 64 other senators on the need to holistically investigate the disbursement of loans by Development Bank of Nigeria, NIRSAL and related Banks to micro, small and medium scale enterprises (MSMEs) in Nigeria from 2015 to date.

Our Correspondent recalls that the same motion by Ndume and three others was investigated by an ad- hoc committee in the 9th Senate and a report was submitted by the panel headed by Senator Sani Musa (Niger East).

Deliberating on the motion at plenary yesterday, the Senate noted that the huge disparity and uneven distribution of half a billion Naira to states in the six geopolitical zones of Nigeria and the states in the country in 2021 by the Development Bank of Nigeria called for concern.

“Aware that the Bank’s Annual Integrated Statutory Report 2021obtained on 13th July, 2022 from the organisation’s website showed that the Bank disbursed a loan worth Four Hundred and Eighty Three Billion Naira (N483,000,000,000) only out of which only 11 percent went to the 19 states of Northern Nigeria, while 47percent went to Lagos State alone.

“Also aware that the 13 percent of the loan that went to the North totals about about Fifty Three Billion , One Hundred and Thirty Million Naira (N53,130,000,000) while the 47 percent that went to Lagos State alone totals Two Hundred and Twenty Seven Billion and Ten Million Naira (N227,010,000,000) only..”

According to the breakdown of the loan presented by Sen Ndume, “the South West got 57 percent worth N274,740,000,000; South South got 17 percent worth N81,940,000,000; North Central got 11 percent worth N53,020,000,000; South East got 9 percent worth N43,380,000,000; North West got 5 percent worth N24,100,000,000; North West and North East got just One percent worth N4,820,000,000.”

Recall that the Development Bank of Nigeria exists to alleviate financing constraints being faced by Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria through providing finances, partial credit guarantees and technical assistance to eligible financial intermediaries on a market – conforming and fully financially sustainable basis.

Senator Ndume also noted that the top five sectors considered for the loan were oil and gas (42.0 percent), manufacturing (16.0 percent) , agriculture, forestry and fisheries (7 .2 percent), trade and commerce (6.3 percent), and transportation and storage (3.5 percent),

However, there was mild drama as senators took time to dissect the motion. It started with Seriake Dickson (PDP, Bayelsa). No sooner than he suggested an additional prayer for the Ad- hoc investigation to be extended to look at all intervention loans by the CBN including Covid- 19 palliative, Anchor Borrows loan etc than it was dropped on the pretext that it will make the assignment of the ad- hoc committee unending.

However, in his contribution earlier, Sen. Orji Uzir Kalu (Abia North) said loans are gotten after due application and following the satisfaction of requisite requirements including bank guarantees.

For Olamilekan Adeola (Ogun West), Senator Ndume had the notion that his North East zone was short changed but forgot that the development financial institutions had laid down procedures to disburse loans.  He however appealed that the motion be given a second look if Ndume felt bad about the facts.

Sen. Sani Musa (Niger East) who headed the former ad- hoc committee said it should be noted that there is difference between bank loans and palliatives.

While agreeing that development institutions has criteria gor granting loans, he said the institutional framework might not be strictly followed.

He disclosed that 65 percent of loans disbursed by DBN has been repaid.

Musa also said interest of northerners in applying for the loan may be restricted by religious belief that no interest should be paid on.loans while financial institutions take 17 percent on loan.

But Ndume interjected him saying he perfectly understood the workings of development institutions and their requirements. He claimed he got information presented from the website of the DBN and microfinance institutions involved.

A financial expert and retired banker, Sen. Isah Jibril advised that the DBN among other institutions is not wholly Nigerian but has foreign bodies like the World Bank and International Monetary Fund (IMF) as investment partners and they have their criteria which cannot be compromised by the Nigerian system.

He advised that Nigerians that failed to meet such requirement should approach other less cumbersome institutions such as the Bank of Industry and Bank of Agriculture.

Reps Investigate NIMASA over Fictitious Contracts, Funds Mismanagement

The House of Representative has set up an Ad-hoc Committee to investigate the allegations of Fictitious Contract award, gross mismanagement of Funds, as well as lopsided placement of Directors by the Nigerian Maritime Administration and Safety Agency, NIMASA.

This was sequel to a motion of urgent national importance brought before it at plenary yesterday, by Hon. Kingsley Chinda, Hon. Victor Ogbuzor, Hon. Cyril Hart Hon. Manu Soro and Hon. Manuchim Onwuzuirike.

The lawmakers observed in the motion,  that the recent developments in the award of questionable and phoney contracts, fraudulent forex transactions, lopsided placement of Directors and other unwholesome and corrupt practices in the Nigerian Maritime Administration and Safety Agency (NIMASA).

They further noted that there have been several allegations of questionable, inflated and fictitious contract awards particularly for non-operational speed boats, security surveillance contracts and Deep Blue

Water Contract, revenue leakages as well as in the award of contracts to cronies of the Director-General and other top management staff of the agency

The legislators equally raised concerns about alleged under-remittance of debts owed the country by Shipping firms, with the consent and connivance of the agency.

They informed the House that the agency was alleged to have entered into a very dubious contract with a firm known as XPO Marine Limited’ for the lease of six speed boats, each at the rate of $173,930.00 monthly, without a Need Assessment for such facility being carried out by the relevant departments of the agency adding that the said XPO Marine Limited had earlier been indicted for defrauding the agency to the tune of $80,000 in revenue.

They said that they were aware of the security surveillance contract called Deep Blue Water Contract’ suspected to be conduit pipe by the management of the agency to pilfer funds.

They equally explained that the security contract tagged National Integrated Surveillance and Waterways Protection’ was also said to have been awarded to an Israeli firm HSLI Systems and Technologies Limited at the cost of $195,300,000.00, despite an existing facility which was a simple internet subscription via Lloyds Intelligence Platform for such operations.

The lawmakers said they were also cognizant of the fact that the agency was also said to have an existing surveillance system, called Lloyd’s List Intelligence, meant for tracking the movement of vessels on Nigeria’s Exclusive Economic Zone, EEZ.

They said there was evidence that the agency’s legal department had counseled against the consummation of the contract on grounds of some fraudulent claims in the agreement, but same was not heeded by the management.

The lawmakers also kicked as they expressed worry over other allegations such as abuse of office and lopsided appointment and placement of Directors of the Agency in favour of some interests to the detriment of others and in breach of S. 14(3) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, as well as other unwholesome practices within the Agency.

“We are aware of allegations of high level corruption against the DG and top management of the agency in the form of withholding of remittable revenue by Gas Shipping Nigeria Limited, Daddo Marine Limited, Blue Seas Marine Services, Transocean Support Services Limited, leading to loss of huge revenue to the Federal government. Others are the award of contracts to the DG’s cronies and other top management staff of the agency in clear violation of the Procurement Act and other Financial Regulations. Such companies include COT Engineering Limited, Well Mann Construction Company

Limited, Retin Technical and Commercial Service Limited, Messrs. De-PK Ventures Limited, amongst others,” they said.

They further said these allegations were of grave nature that should not be swept under the carpet or dismissed with a wave of the hand, particularly as it relates to economic losses on the part of the government.

Consequently, the Ad-hoc Committee was mandated to thoroughly investigate all the allegations and report back within three months for further legislative actions.