The Socio-Economic Rights and Accountability Project (SERAP) has urged Mr. Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN) to account for and explain the whereabouts of the over N100 billion ‘dirty and bad notes’ and ‘other large sum of cash awaiting examination’ which are kept in various branches of the CBN.
SERAP, in a statement issued by its deputy director, Kolawole Oluwadare, stated that the charges are documented in the Auditor-General of the Federation’s most recent annual report.
The N4.8 billion budgeted for the renovation of the CBN Abeokuta branch in 2009 and the N7.2 billion budgeted for the construction of the CBN Dutse branch in 2010, as well as the names of the contractors who collected the funds but were unable to finish the projects, were also demanded by SERAP.
He was urged by SERAP to fully recover and remit the public funds to the treasury and to explain the whereabouts of the allegedly missing outstanding loan of N1.9 billion granted to the Anambra state government between 2015 and 2016 and the outstanding loan of N1.2 billion granted to the Enugu state government in 2015.
These violations include the CBN Act, the Nigerian Constitution 1999 [as amended], and the nation’s national and international anticorruption obligations.
In a letter dated June 29, 2024, and signed by SERAP deputy director Kolawole Oluwadare, the organisation stated:
“These grim allegations by the Auditor-General suggest grave violations of the public trust, provisions of the Nigerian Constitution, the CBN Act, and national and international anticorruption obligations.”
The regulator stated
“These grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and to uphold the principles of transparency and accountability.”
According to SERAP,
“These grave violations have seriously undermined the CBN’s ability to effectively discharge its statutory functions, as well as public trust and confidence in the bank.” The CBN should be committed to transparency and accountability in its activities.
The letter read, in part,
“We would appreciate it if the recommended measures were implemented within 7 days”
“Explaining the whereabouts of the missing public funds, publishing the names of those suspected to be responsible and ensuring that they are brought to justice and the full recovery of any missing public funds would serve the public interest and end the impunity of perpetrators.”
“According to the recently released 2020 audited report by the Auditor General of the Federation (AGF), the Central Bank of Nigeria (CBN) has been holding large amounts of cash, including “dirty and bad notes” totaling over N100 billion [N100,672,999,000.00], in various CBN branches for examination since 2017.
“The “dirty and bad notes” that were first supposed to be burned might have instead “be diverted and re-injected into the economy,” according to the Auditor-General.
According to reports, the CBN allocated N7.2 billion [N7,286,500,476.76] for the construction of the Dutse branch facility in August 2010. November 2012 was the scheduled completion date for the Dutse branch, but the contractors were unable to finish the work.
“The Auditor-General wants the ‘job completed without further delay,’ as he is concerned that the project may have been ‘awarded to incompetent contractor.”
“The CBN purportedly allocated N4.8 billion [N4,812,608,028.10] for the CBN Abeokuta branch renovation in 2009.” The contractors have not finished the Abeokuta branch, which was supposed to be finished in 2012.
“Additionally, it is alleged that the CBN neglected to account for the N1.9 billion [N1,994,383,561.64] outstanding credit to the Anambra state government between 2015 and 2016, as well as the N1.2 billion [N1,294,453,887.83] outstanding loan to the Enugu state government in 2015.
“The Auditor General believes there’s a chance that public money were misused.He desires that the funds be completely recovered and sent to the Treasury.
“The Financial Regulations of 2009 provide in paragraph 708 that “payment for services not yet rendered or for goods not yet supplied shall not be made on any account.”
“Once a mobilisation fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate,” according to Section 35(2) of the Public Procurement Act of 2007.
“All bidders shall possess the necessary professional and technical qualifications to carry out specific procurements; the financial capacity and adequate personnel to perform the obligations of the procurement contracts,” according to Section 16(6) of the Public Procurement Act. “SERAP observes that public institutions in Nigeria are obligated by Section 15(5) of the Constitution to eradicate any form of corruption and misuse of authority.
” The CBN is clearly required by Section 13 of the Constitution to adhere to, observe, and implement the rules of Chapter 2 of the document.
“Paragraph 3112(ii) of the Financial Regulations 2009 provides that, “Where a public officer fails to account for government revenue, such officer shall be surcharged for the full amount involved and shall be handled over to either the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC).”
“Nigeria has undertaken legally enforceable obligations under the UN Convention against Corruption to ensure accountability in the handling of public funds. Articles 5 and 9 of the UN Convention Against Corruption also require the CBN to maintain effective administration of public affairs and money.
“Nigerians have the right to know where the public funds are. Taking the recommended measures would promote Nigerians’ rights to restoration, compensation, and a guarantee against repetition.”
“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions’ activities.”
In Essence
SERAP’s demands are backed by various legal and regulatory frameworks, including the Nigerian Constitution, the CBN Act, and international anti-corruption obligations. These frameworks mandate strict adherence to transparency and accountability in public fund management. The alleged violations, if proven true, represent a severe breach of these obligations.
Final Thought
The demand for the CBN to account for the missing funds is in the public interest. Nigerians have a right to know how public funds are managed and to expect that those responsible for any mismanagement are held accountable. This transparency is essential for maintaining public trust in financial and governmental institutions.
