The Senate Uncovers N14.7bn Proceeds Of Defunct PHCN Hidden In Commercial Banks

The Nigerian senate recently discovered the proceeds of Power Holding Company of Nigeria (PHCN) amounting to N14.7bn hidden in commercial banks. The action was masterminded by the Bureau of Public Enterprise (BPE); the body responsible for transferring the funds to bank.

The development started when senator, Matthew Urhoghide carried out an investigation into where the proceeds of the former power company, PHCN went to. The senator who is representing Edo South zone under the umbrella of the Peoples Democratic Party, PDP took the bold step during the committee on public accounts.

The Query states:

“Audit verification and reconciliation revealed that the sum of ₦14,720,396,432.43 (Fourteen billion, seven hundred and twenty million, three hundred and ninety-six thousand, four hundred and thirty-two naira, forty-three kobo), being proceeds from the privatization exercise of Power Holding Company of Nigeria (PHCN) was reported in the Bureau’s Trial Balance to be in Commercial Bank Accounts as at 31st December 2016.”

“Whereas the privatization of Power Holding Company of Nigeria (PHCN) was concluded in 2013, the proceeds are yet to be remitted to Central Bank of Nigeria (CBN) Privatization Proceeds Accounts.” 

“The issue has been communicated to the Bureau via letter reference No. OAuGF/RESAD/05/2016/07 dated 19th April, 2018 and no response has been received.”

“Unauthorised funds kept in Commercial Banks may be diverted for other purposes, thereby leading to loss of Revenue available for Government programmes.”

“The Director–General is required to recover the sum of ₦14,720,396,432.43 being proceeds of PHCN and remit same to CRF and forward evidence of remittance to my office for audit confirmation.”

Moreover, according to reliable sources, the ongoing probe is banking on the documentary of the 2017 Auditor General’s statement for verification and authentication. This is one of the latest incidents involving the former energy company, PHCN with diverted funds.

Do not that the Power Holding Company Of Nigeria was privatised in 2013 and was made defunct as a result. Private corporations have taken over the power sector since that time; with only the transmission companies being controlled and regulated by the federal government.

The BPE in a statement said;

”Two separate sums of N3.231,984.73 and N18.199,520.87 are unaudited bank balances that were actually no longer in existence as at the date of the audited financial statements or asked questions, the matter would have been clarified.”

“With respect to the two other bank balances N4.4bn and N10.2bn in FCMB.”

“The correct balance in a Bank as at 31/12/16 was NIL as the bank had transferred a swelled balance of $34.1 million to the CBN domiciliary Account.”

“The bank had initially been unable to make the transfer as at September 2015 as required under TSA policy, owing to the inexistence of designated USD Treasury Single Account for dollar balances.”

“The Balance in a Bank as at 31/12/2016 was only $36,053.55 following a transfer of $65,088,198.53.”

“The residual balance remained until 18/95/17 due to inability of the bank to remit as required under the TSA policy owing to initial unavailability of designated TSA for USD balances as required under the then newly introduced policy.”

The Query read. “Audit verification and reconciliation revealed that the sum of ₦14,720,396,432.43 (Fourteen billion, seven hundred and twenty million, three hundred and ninety-six thousand, four hundred and thirty-two naira, forty-three kobo), being proceeds from the privatization exercise of Power Holding Company of Nigeria (PHCN) was reported in the Bureau’s Trial Balance to be in Commercial Bank Accounts as at 31st December 2016.”

“Whereas the privatization of Power Holding Company of Nigeria (PHCN) was concluded in 2013, the proceeds are yet to be remitted to Central Bank of Nigeria (CBN) Privatization Proceeds Accounts.” 

“The issue has been communicated to the Bureau via letter reference No. OAuGF/RESAD/05/2016/07 dated 19th April, 2018 and no response has been received.”

“Unauthorised funds kept in Commercial Banks may be diverted for other purposes, thereby leading to loss of Revenue available for Government programmes.”

“The Director–General is required to recover the sum of ₦14,720,396,432.43 being proceeds of PHCN and remit same to CRF and forward evidence of remittance to my office for audit confirmation.”