Audit reviewed and analysed the carrying amount of investment property available for sale by the Bank and its subsidiaries, and observed that in 2017 financial year, the value of 33 units of houses situated at Life Camp, Abuja which was carried as N3,752,556,000.00 was deemed to have been impaired to the tune of N1,560,167,000.00. This property which was previously held by one of the Bank’s subsidiaries was transferred to the Bank in exchange for the liquidation of the debt owed by the subsidiary.
The management of BOI could not substantiate the reduction of the net realizable value of the 33 units of houses and the circumstances that resulted to its conclusion that the property was impaired. Furthermore, the amount owed by the subsidiary that warranted a drastic reduction in the net realizable value of the property in order to transfer it in exchange to the Bank was not disclosed. Additionally, the circumstances that necessitated giving loan to the subsidiary could not be substantiated.