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Senate Indicts Bank of Agric Over N3.2BN Loan Disbursement



Senate Indicts Bank of Agric Over N3.2Bn Loan Disbursement

The Senate has indicted the Bank of Agriculture (BoI) in Kaduna over N3.2 billion loan disbursed to ten vendors to purchase tractors and other equipment for allocation to end users.

The indictment was sequel to the 2016 report of the Auditor General of the Federation considered by Senate Public Accounts Committee chaired by Senator Mathew Uhroghide.

After investigation by the committee, the management of the bank was indicted for being unable to account for N3.2 billion disbursed to 10 vendors out N3.6 billion provided in 2015 by the Federal Government through the bank.

BUSINESS METRICS learnt that the Ministry of Agriculture selected the 10 unnamed vendors for the management of the Bank of Agriculture which the N3.2 billion was disbursed.

The loan has four years expiry date.

After the Senate adopted the report of the committee, it asked for the recovery of N3.2 billion from ten unnamed vendors.

The query read, “The sum of N3,200,592,007.00 (Three billion, two hundred million, five hundred and ninety-two thousand, seven naira) was disbursed out of N3,600,000,000.00 (Three billion, six  hundred million naira) provided between 24th March, 2015 and 17th  November 2015, by the Federal Government through the bank to 10  (ten) vendors selected by the Ministry of Agriculture to purchase tractors and other equipment for allocation to end users.

“The beneficiaries were expected to make repayment through Service Provider Operators (SPOs) under a revolving fund arrangement with expected multiplication effect on the national agricultural mechanization agenda.
“The bank was to monitor and supervise the disbursement as well as ensure recovery of the funds for further lending to new participants. However, the entire revolving fund  could  not  be  accounted  for  by the bank’s management.

“The Managing Director was communicated to account for all the amounts involved.”

But the Bank in its written response which was not accepted by the Committee, said, “Programme was structured with a four (4) year loan tenor commencing from the date of release of the machinery/equipment to the AEHE Centre.

Since the machinery/equipment were not released on the same day, the expiry dates of the machinery loans also vary.”

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