The Auditors observed during their audit that the sum of US$469,387,755.10 was withdrawn from the Signature Bonus Account of the Department domiciled with JP Morgan Chase Bank between April 10th and April 30th 2015 and paid to an account called, “CBN AUTONOMOUS FEM ACCOUNT GARKI ABUJA NIGERIA”, rather than being swept to the Federation account in line with the provision of the law.
Similarly, US$290,000,000.00 was withdrawn from the Signature Bonus Account domiciled with JP Morgan Chase Bank in three tranches: July 7th, 2014 – $100,000,000.00; February 19th 2015 – $40,000,000.00; and May 8th 2015 – $150,000,000.00, via Standard Chartered Bank to First Bank Nigeria, in favour of Petroleum Technology Development Fund (PTDF) with the description, “BEING FUNDS RELEASED TO PTDF FOR EXECUTION OF CRITICAL PROJECT” rather than being swept to Federation Account. These withdrawals from the Signature Bonus account are recognized in the books of the Department.
This infraction was due to the failure of the Director of the Department to strictly comply with the provisions of extant laws and regulations and not circumvent laid down procedures guiding the sweeping of revenues generated by MDAs to the CRF.
No explanation was provided on these withdrawals as the Department claimed that it has no control over withdrawal from the Signature Bonus Account, though it accounts for such withdrawals in its cash book.
The Director DPR should produce the source of authority to the Public Accounts Committee of the National Assembly, authorizing the transfer of funds from the Signature Bonus Account to any other account other than to the Federation Account.
Furthermore, the Accountant-General of the Federation and the Honourable Minister of Finance should forward to the Public Accounts Committee of the National Assembly, the details of the utilization of the US$759,387,755.10 withdrawn from the Signature Bonus Account.
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