TSA: Court orders seven banks to remit $793.2m with CBN

Seven commercial banks in the country were, on Thursday, ordered by a Federal High Court, Ikoyi, Lagos, to temporarily remit a total of $793,200,000 allegedly hidden with them with the Central Bank of Nigeria, CBN.
The court said the banks were being penalised for contravening of the Federal Government’s Treasury Single Account, TSA’s policy.

It would be recalled that at the onset of the President Muhammadu Buhari’s administration in 2015, he had ordered Ministries, Department and Agencies, MDAs to henceforth, maintain a single account. Hitherto, the MDA have maintained multiple accounts, which the government viewed did not allow for transparent government financial operations, as they created loopholes for corruption.

Justice Chuka Obiozor, had ordered the seven banks to remit the various amounts being allegedly kept illegally in their custody to the designated Federal Government’s Asset Recovery dollars’ account domiciled with the CBN.

The banks are: United Bank for Africa; Diamond Bank Plc; Skye Bank Plc; First Bank Limited; Fidelity Bank Plc; Keystone Bank Limited; and Sterling Bank Plc.

In the court processes filed by counsel for the Attorney General of the Federation, Prof. Yemi Akinseye-George (SAN), a total of $367.4m was illegally hidden by three government agencies in UBA, while a sum of $41m was illegally kept in a NAPIMS fixed deposit account with Skye Bank.

The court papers stated that $277.9m was hidden in Diamond Bank; $18.9m in First Bank; $24.5m in Fidelity Bank; $17m in Keystone Bank; and $46.5m in Sterling Bank.

Mr. Vincent Adodo, a lawyer from Akinseye-Georges’s law firm who deposed to a 15-paragraph affidavit in support of an ex parte application filed by the AGF, stated that seven banks colluded with Federal Government officials to hide the funds in breach of the government’s TSA policy.

The funds, he said, were revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariffs etc accruable to the Federal Government from different ministries, departments, parastatals and agencies.

Adodo said the banks had failed to remit the funds to the TSA domiciled in the CBN, in violation of the guidelines issued by the Accountant General of the Federation, which fixed September 15, 2015 as the deadline for such funds to be moved.

He said, “The 1st to 7th respondents (banks), in collaboration with and/or collusion with unknown officials of the Federal Government, conspired to disobey the relevant constitutional provisions, thereby depriving the government of the Federal Republic of Nigeria of funds belonging to it, which are needed urgently to fund pressing national projects under the 2017 budget.”

Among the allegedly culpable government agencies, is the National Petroleum Developing Company.

Moving the ex- parte application on Thursday, Akinseye-George said it would best serve the interest of justice for Justice Obiozor to order the banks to remit the funds to the Federal Government, to prevent the funds from being moved or dissipated.

“The withheld funds are urgently required for the implementation of the 2017 budget. The budget has a lifespan of 12 months; and we are already in the middle of the year. By hiding these hidden funds, the Federal Government is being forced to borrow money from these commercial banks at exorbitant interest rate,” Akinseye-George added.

After listening to the SAN, Justice Obiozor granted the interim orders.

He directed that the order should be published in a national daily newspaper.

Meanwhile the court has adjourned till August 8, 2017, for anyone interested in the funds to appear before it to show cause why the interim orders should not be made permanent.