N166 Billion Funds: House Of Reps Summons Amaechi, NPA Management

N166 Billion Funds: House Of Reps Summons Amaechi, NPA Management

By Wires Editor | The Trent on June 24, 2021
0
Femi Gbajabiamila
Femi Gbajabiamila, the speaker of House of Rrepresentative

The House of Representatives has summoned the Minister of Transportation, Rotimi Amaechi, and the Management of the Nigeria Port Authority to give details of revenue accruing to the Nigeria Port Authority as at December 31, 2016 amount to about N166, 685,929,000 which were not properly captured in the statement of account of the agency.

They are also to explain the cost of services rendered to the Authority amounting to about N103.996 billion including channels and waterways maintenance (N65.130 billion) and Port and Quays Expenses of N38.412 billion).

The Minister and the NPA management who were initially expected to appear before the House Committee on Public Account on Thursday, June 24, 2021, pleaded for another date to cause appearance and were given a July 8 date to appear before the committee.

They are expected to respond to audit queries contained in the comments of the Auditor General of the Federation on the group financial statement of the Nigeria Port Authority for 2016.

They are equally expected to give a breakdown of the Ports and Quays Services income stating the respective income from each of the services, scheduled oil terminal dues, details of pilotage and service boats, and the nature of rentals services offered and rates applied.

In addition, the Auditor General said they are to answer questions from the lawmakers, giving breakdown of maintenance, budgetary provisions and evidence of work done on the channels and waterways as “examination of the accounts revealed that the channels and waterways maintenance rose from N44.427 billion in 2015 to N64.130 billion in 2016, an increase of over N20 billion.

The comments suggest that the NPA incurred about N38.412 billion as service charge on the Ports and Quays and demanded that the management of the Authority provide details of how these charges were incurred and also to explain what they meant by the term “others” for which about N4.7 billion was spent.

The Auditor-General said that further examination of the accounts of the NPA revealed that Intels Integrated Services Limited were overpaid their commission to the tune of N2.099 billion.

The Minister and the NPA management are also to explain what happened to the dividend income of N643.006 million received from their joint venture partners as well as interest income of about N97.8 million and N28.7 million being interest from bank deposits and interest on loan and receivables.

Other queries against the NPA include administrative expenses of N61 billion which include professional charges of N638 million, donation and subscription of N1.88 billion, exchange loss of N7. 3 billion, defined benefit expenses of N11.4 billion, and director’s remuneration of N4.2 million.

The Auditor General’s query signed by Adolphus Aghughu and dated 24th May, 2021also identified what it called understatement of depreciation charges to the tune of N6.4 billion stressing that “the provision made against eight classes of property amounted to N4.472 billion as against N10.891 million arrived at during vetting.

“If however, the under-provision of depreciation was attributable to assets which have been fully written down, the nominal values at which such assets were retained in the books should be disclosed.”

Source: The Nation

NO COMMENTS

Leave a Comment

To leave a comment anonymously, simple write your thoughts in the comments box below and click the ‘post comment’ button.