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Home»Banking & Finance»Money Market»CBN Explains Payment Of $163.7Mn To PIA’s
Money Market

CBN Explains Payment Of $163.7Mn To PIA’s

By orientalnewsngMay 17, 2017No Comments2 Mins Read
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Joseph Bakare/Yemisi Izuora

The House of Representatives Committee on Public Procurement has sought clarification from the Central Bank of Nigeria (CBN) over the payment of $163.7 million to pre-shipment inspection agents (PIAs) involved in the monitoring of crude oil and gas exports from Nigeria from 2009 to 2014 without the approval of the National Assembly.

The committee, led by Mr. Wole Oke, also frowned at the Ministry of Finance involvement in the payment of the money.

The CBN Governor, Mr. Godwin Emefiele, who testified at the resumed investigative hearing of the committee gave a run down of monies released to the PIAs within the period under the review.

Represented by Mr. Gabriel Dauda, the CBN governor stated that as a member of the NESS technical committee, it settled the PIAs’ claims based on the recommendation of the ministry of finance.

When asked by a member of the committee, Mr. Solomon Bulus Maren (Plateau: PDP) on how they were able to source such unbudgeted monies to pay the PIAs, he explained that the deal was self-financing, adding the monies were sourced from the net collections of the PIAs in the oil deal.

The committee however contended that both the CBN and the finance ministry had breached sections 80 and 81 of the 1999 Constitution as amended “by spending unappropriated monies” belonging to the government.

Besides, the committee insisted that the Finance Minister, Mrs. Kemi Adeosun, would have to explain on Tuesday next week why her ministry directed the payment of PIAs’ claim even when the CCI did not indicate the volume of crude oil exports from oil terminals.

Adeosun, who was billed to appear yesterday, sent in words to the lawmakers that she would not be able to make it due to the cancellation of her flight from Lagos.

Meanwhile, a bill seeking for an Act to amend the Pension Reform Act, 2014 to exclude members of the Nigeria Police, the Nigerian Security and Civil Defence Corps and Nigeria Customs Service from the application of the Contributory Pension Scheme (CPS) and for other related matters yesterday passed second reading on the floor of the House of Representatives.

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