|
|
|
[2010-01-26]
Auditor-General queries N300b debt owed govt by MDAs
| A DEBT stock of N300 billion, hanging on Ministries, Departments and Agencies (MDAs), incurred from various advancements from Federal Government, may have become a fresh challenge to the office of the Auditor-General of the Federation, as the identified official debtors have neither repaid nor serviced the loans, now estimated at about N300 billion.
Beside, AGF has also queried a $40 million loan (about N6 billion) granted to Ghana on August 3, 2004, for financing its interest in the West African Gas Pipeline project, at a zero-interest rate , which was also not reflected in the nation's financial statements.
The loan agreement indicated, according to the nation's chief auditor, that Ghana was to pay the loan in five equal instalments of $8 million bi-yearly.
Another loan of $5 million (about N750 million) was granted to Sao Tome and Principe to enable the country establish a treaty on the exploration and development of resources in the Joint Development Zone (JDZ), but the facility was, again, not reflected in Nigeria's financial statements prepared by the Accountant- General's office.
Consequently, the Chief Accountant of the Federation has been directed to furnish AGF "with the present position of the repayment of the loans totalling $45 million (about N6.7 billion) as at the end of December, 2008.
The AGF's report currently before the National Assembly, showed that the country's local debt stock as at December 2008, stood at over N2.8 trillion.
Out of the total external debt stock of $3.7 billion (about N486.4 billion), the Federal Government share was N269.3 billion ($2.06 billion), while the 36 state governments accounted for the balance of nearly $670 million.
Of the nearly N300 billion owed the Federal Government by MDAs, loans to the companies under the Power and Steel Ministry stood at N97.816 billion. Ajaokuta Steel Company alone was owing over N72.756 billion.
Loans to companies under the Ministry of Information and Communications as at 2008, were put at N42.395 billion. The embattled NITEL incurred this debt. Others are Ministry of Works N9.263 billion; Ministry of Industry, N8.562 billion; Transport, N6.450 billion; Finance N5.554 billion; Solid Minerals, N3.800 billion; and companies under the Ministry of Agriculture owed N3.240 billion.
Beside Power Holding Company of Nigeria that is owing N7.326 billion, other companies with non-performing loans include Nigeria Iron Ore and Mining Company, Delta Steel Rolling Mill, Nigeria Security Printing and Minting Company, Bank of Industry, Nigeria Coal Corporation, Nigeria Mining Company, Federal Airport Authority of Nigeria, Federal Mortgage Bank, New Nigerian Newspapers and Nigeria Airways Limited, among others.
In all, 20 companies did not repay their loans and the cumulative interest in 2008 to the tune of N193.622 billion, though the principal loan stood at N155.542 billion.
The AGF lamented that "many of the companies and agencies that were beneficiaries of loans from the Federal Government failed to repay such loans as at when due."
He added: "For instance, the Federal Housing Authority (FHA) was granted the total sum of N7.29 billion in three tranches between 1997 and 2001. Although the agreement provided for a moratorium of two years only, neither the capital nor the accumulated interest has been paid as at 31st December 2008.
"As a result, the total (of over N7 billion) and cumulative interest of N1.096 trillion, totalling N8.39 trillion was still outstanding. Yet this organisation was involved in massive sale of houses from which it could have easily liquidated the loan if the management was desirous of doing so. This was one case out of many such defaulting organisations. This has been subject of my reports since 2002 without any response."
And on the non-performing loans to 20 government agencies and companies, the AGF observed that there was no movement in the cumulative interests, suggesting that no interests were charged in 2008.
Source:© Copyright Guardian Online
| [2010-09-02]
Stock market performance remains wobbly | [2010-09-02]
Buhari’s party plans alliance with 35 others | [2010-09-02]
Steady power will cost N7.5tr | [2010-09-02]
America agency trains farmers on cassava | [2010-09-01]
Nigeria's microfinance policy review underway | [2010-09-01]
Africa prospects lure investors, but is the continent ready? | [2010-09-01]
Board to award certificates for unskilled labour | [2010-08-31]
Shell close to finishing new Nigeria pipeline | [2010-08-31]
Nsukka university trains staff on Google tools | [2010-08-31]
The best mobile browser |
|
|
|
