SERAP gives ultimatum to CBN to account for missing N100bn dirty notes, others

By Olusegun Olanrewaju

Transparency group, Socio-Economic Rights and Accountability Project (SERAP) has urged the governor of the Central Bank of Nigeria (CBN),  Olayemi Cardoso, to account for, and explain the whereabouts of, the over N100bn ‘dirty and bad notes’ and ‘other large sum of cash awaiting examination’ kept in various branches of the CBN.

The organisation said the allegations are documented in the latest annual report recently published by the Auditor-General of the Federation.

SERAP also urged the CBN Governor to explain the whereabouts of the N7.2bn budgeted for the construction of the CBN Dutse branch in 2010, and the N4.8bn budgeted for the renovation of the CBN Abeokuta branch in 2009.

It demanded the apex bank publish the names of the contractors who collected the money but failed to complete the projects.

SERAP urged Cardoso to explain the whereabouts of the allegedly missing outstanding loan of N1.2bn granted to the Enugu State government in 2015 and the outstanding loan of N1.9bn granted to the Anambra State government between 2015 and 2016, as well as fully recover and remit the public funds to the treasury.

The organisation demanded the CBN Governor to refer “these grave violations of the Nigerian Constitution 1999 (as amended); the CBN Act and the country’s national and international anticorruption obligations to appropriate anti-corruption agencies for investigation and prosecution, as appropriate, and the recovery of the public funds.”

 In the letter dated 29 June 2024 and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organisation said: “These grim allegations by the Auditor-General suggest grave violations of the public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anti-corruption obligations.”

SERAP added, “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 ability of the CBN to effectively discharge its statutory functions and the public trust and confidence in the bank. The CBN ought to be committed to transparency and accountability in its operations.”

 The letter read in part, “We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”

SERAP also insisted that the explanation of the whereabouts of the missing public funds, publishing the names of those suspected to be responsible, and ensuring that they are brought to justice, including the full recovery of any missing public funds would serve the public interest and end the impunity of perpetrators.

SERAP stated further that, “The CBN, in August 2010, also reportedly budgeted N7.2bn for the construction of the Dutse branch building. The Dutse branch was due to be completed in November 2012 but the contractors have failed to complete the project.

The organisation noted in the letter that, “There is no significant renovation work on the site, several years after the proposed completion date. The Auditor-General is concerned that the project may have been ‘awarded to an incompetent contractor,’ and wants the ‘job completed without further delay.’

“The CBN also reportedly failed to account for the missing outstanding loan of N1.2bn granted to the Enugu State government in 2015, and the outstanding loan of N1.9bn granted to the Anambra State government between 2015 and 2016.”

 It emphasised, “The Auditor-General fears the public funds may have been diverted. He wants the money fully recovered and remitted to the treasury.

 “Paragraph 708 of the Financial Regulations 2009 provides that, ‘on no account should payment be made for services not yet performed, or for goods not yet supplied.”