Audit observed, from the review of a letter with Reference No: BOA/MD/HMF/BOSAM/2018/98, dated April 17, 2018, addressed to the Honourable Minister of Finance on the status of three (3) loans disbursed to the Federal Ministry of Agriculture and Water Resources (FMA&WA) and its Parastatals between 1981 and 1992, that:
i. Between 1981 and 1982, the Federal Executive Council directed the Bank to disburse the sum of 5,000,000.00 (Five million naira) each to the eleven (11) River Basin Development Authorities totaling 55,000,000.00 (Fifty-five million naira) for On-Lending to Farmers in their areas of jurisdiction. Due to the poor servicing of the loan, the debt position stood at 634,405,323.00 (Six hundred and thirty-four million, four hundred and five thousand, three hundred and twenty-three naira) as at December 31, 2000;
ii. In 1989, the Bank led a syndication which provided the Federal Ministry of Agriculture and Water Resources (FMA&WR) with loans of 221,776,307.00 (Two hundred and twenty-one million, seven hundred and seventy-six thousand, three hundred and seven naira) and 75,624,236.00 (Seventy-five million, six hundred and twenty-four thousand, two hundred and thirty-six naira) for the completion of Kampe and Swash Dams and Irrigation projects respectively. The debt position stood at 152,144,006.58 (One hundred and fifty-two million, one hundred and forty-four thousand- and six-naira, fifty-eight kobo) as at December 31, 2000;
iii. In 1992, BOA granted a loan of $5,240,662.50 (Five million, two hundred and forty thousand, six hundred and sixty-two dollars, fifty cent) as down payment to the FMA&WR for the construction of Middle and Lower Ogun Dam and Irrigation projects. The debt position stood at 1,625,257,333.42 (One billion, six hundred and twenty-five million, two hundred and fifty-seven thousand, three hundred and thirty-three-naira, forty-two kobo) as at December 31, 2000;
iv. The Federal Executive Council set up a Committee comprising officials of the Ministries of Water Resources, Finance and BOA in 1999 to carry out reconciliation, which arrived at the total outstanding balance of 2,411,806,663.00 (Two billion, four hundred and eleven million, eight hundred and six thousand, six hundred and sixty-three naira) as at December 31, 2000; and
v. In April, 2001, the Ministry was granted waiver of 1,043,806,663.00 (One billion, forty-three million, eight hundred and six thousand, six hundred and sixty-three naira) and requested to pay the sum of 1,368,000,000.00 (One billion, three hundred and sixty-eight million naira) as full and final settlement but the amount has not been settled.
The Managing Director is requested to:
i. Furnish evidence of the recovery of 350,000,000.00 by D.D. Azura and Co. in 2019 to the Public Accounts Committees of the National Assembly;
ii. Furnish evidence of additional recoveries made, especially from Ministry of Water Resources indebtedness of 1,368,000,000.00 from 2,411,806,663.00 to the Public Accounts Committees of the National Assembly, and
iii. Otherwise, apply sanction relating to failure to collect and account for government revenue in paragraph 3112 of the Financial Regulations.
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